Newsletter for the Rotary Club of Western Endeavour - Issue No.: 863 Issue Date: 16 Jun, 2019

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The Banking Royal Commission, Housing Crisis and Related Issues

On June 4th Curt McDonald gave a brief presentation to the Western Endeavour Rotary Club entitled, "The Banking Royal Commission, The Housing Crisis and Related Issues.

After a few remarks on his background and what economists actually do, Curt took everyone on a flying tour of these important economic developments and their implications for the future, particularly in light of the recent election results.

Curt suggested that while most of the recommendations handed down by the Commissioner were unlikely to be implemented, the big banks had actually been changing how they operated since the beginning of the Royal Commission almost two years ago.  In particular, it is now harder to get a loan than ever before, as bank lending standards have been tightened considerably.

The pull back in lending by the banks has been a catalyst for falling house price over the last 24 months.  These declines have been aggravated by the same factor that led house prices to their recent peak: namely, that our view of where house prices will go over the next year depends almost completely on what happened to house prices last year.  This recent history is much more important than interest rates, immigration or any other factor in driving house prices. 

The RBA has done all it can to prop up households by lowering interest rates, but it is pretty much out of ammo on this front.  All it can do now is help influence the AUD lower, which should help exporters.  60 cents seems a good target for the AUD over the next few years, and quite possibly lower if things do not improve.  Government is also helping by spending big on infrastructure projects

It is difficult to say how much farther house prices will fall.  Property spruikers think we have already seen the bottom.  However, Paul Krugman, a famous US economist once said "Housing bubble do not burst - they gradually deflate."  RBA research suggests that house prices have further to fall, and we may only be about half way there.

Curt's final recommendation is that we should all see the movie "The Big Short" again.

For a more in-depth discussion of Curt's presentation please visit the Articles section of our website.

Rotary- International!

Each week we toast "Rotary International".  We are fortunate to be able to contribute to Rotary service internationally, through our international projects.  Another aspect of Rotary internationally is the opportunity for acquaintance with Rotarians from other countries.  Its as simple as doing a makeup while travelling overseas, whih is what Gaby & I did in Tokyo.

Tokyo has several Rotary Clubs, needless to say!  We were fortunate that the Tokyo Roppongi Club ( meets on Monday lunchtime, that fitted our itinerary.  The Club meets in the Grand Hyatt Tokyo, which is in the Roppongi Hills retail/office complex, only a short walk from our hotel.

Through the Internet & email, it was easy to make contact with Club President Ms Akiko Saito, to confirm a meeting was scheduled and that we were welcome to attend.

Notwithstanding the meeting was entirely in Japanese, it was not difficult to see the format was quite similar to our Club meetings, if a little more formal. I have attached the menu.  Food was excellent, if a little on the expensive side for a weekly lunch- 5,000 JPY each.

We sat at a table with a former ambassador to Australia, during John Howard's Prime Ministership.  He of course spoke good English.  Also on the table was Mrs Mori!  The former ambassador advised us that the Mori family own the Roppongi Hills complex. The other English speaker at our table was an American who came to Japan in the mid 60s with an American pharmaceutical company, then started his own pharmaceutical company, and has lived in Japan ever since.

Apart from the international flavour Gaby & I added, all the way from Perth, there was also a visiting Rotarian from a northern Germany Rotary Club. He was holidaying in Japan with his young family.

Finally, the guest speaker that day was their Mexican exchange student, Talia, who gave her presentation in Japanese (she has been there 8 months), and spoke English and German, as well as her native Spanish!

All of that to say, on your travels take the time & trouble to check whether there is a makeup that fits your itinerary.



Fellowship... June is designated as “Rotary Fellowship Month” by the RI Board to recognise the importance of international fellowship and goodwill among Rotarians with similar recreational interests, vocations, and health and medical issue-oriented interests, to promote increased participation in fellowships and increase understanding of this program. The RI Board encourages fellowship groups to highlight activities through projects, activities, and events in celebration of “Rotary Fellowship Month”.


“Fellowship is wonderful; it illuminates life’s pathway, spreads good cheer, and is worth high price.” Rotary Founder, Paul Harris

Special Days
Thu, 20 Jun - Marcus Harris' Birthday

Sun, 23 Jun - Charles Marais' Birthday

Wed, 26 Jun - Byron Williamson will have served our Rotary club for 3 years

Wed, 26 Jun - Laurie and Alma Dender will be celebrating 37 years of Marriage

Wed, 26 Jun - Peter Batskos will have served our Rotary club for 6 years

Meeting Rosters
Thanks & Cleanup
3 minute bio
19 Jun, 19
Tony Parker
Laurie Glossop
23 Jun, 19
Tony Parker
02 Jul, 19
Byron Williamson
Donna Thornton
Bruce Dufty
David Fisher
Bruce Fielding
16 Jul, 19
Barrie Heald
John Boxall
John Boxall
John Boxall
Bruce Fielding
06 Aug, 19
Bruce Dufty
Judy Dinnison
Upcoming Events
Event Name
Reg. By
Quairading somewhere
Sat, 27 Jul, 19
16 Jul, 19
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