by RustyCage » Tue Apr 24, 2012 7:28 pm
by gossipgirl » Thu Apr 26, 2012 2:05 pm
by Psyber » Thu Apr 26, 2012 2:12 pm
Every company needs to keep making "record profits" to keep up with the overall inflationary trend.gossipgirl wrote:Unfortunately the banks only have 1 objective and thats to keep making record profits and the best way to do this is with interest rates. They suck the big one
by infinity+1 » Thu Apr 26, 2012 3:08 pm
by Psyber » Thu Apr 26, 2012 8:08 pm
I'm just saying you have to be realistic about how businesses run and create jobs.infinity+1 wrote:you live in a fantasy land of $400,000 salaries and driving around in audis listening to bochello psyber. the average schmo wants interest rates cut and cut now. i have to feed my guts somehow, iced coffees are cheap you know. interest rate cuts now or im going on strike, **** their profits.
by infinity+1 » Fri Apr 27, 2012 12:13 am
Psyber wrote:I'm just saying you have to be realistic about how businesses run and create jobs.infinity+1 wrote:you live in a fantasy land of $400,000 salaries and driving around in audis listening to bochello psyber. the average schmo wants interest rates cut and cut now. i have to feed my guts somehow, iced coffees are cheap you know. interest rate cuts now or im going on strike, **** their profits.
You can't fantasise that jobs will still be there, and that the money will stay in business, if it isn't making enough to be worth the greater risk than leaving your money in a bank you know is sound.
There is no point in running a business if profit rates are lower than just leaving the money in your bank account - why bother? - and no business = no jobs.
The same applies to the availability of rental housing - if rents are well under bank account rates and the capital gain is taxed, why put up with the hassle and risk? - result, rental housing shortage.
(PS: My annual income from my Super is under $40K in this current economic climate, and my Audi is a 1995 model that I bought second-hand in 2002.)
by Psyber » Fri Apr 27, 2012 12:13 pm
Your money in the bank would actually do better if rates went up.infinity+1 wrote: i agree with you psyber im all for a different economic system. not communism as such but something better than capitalism which just makes every man and his dog a worker ant and a slave to the system. if you had an out of body experience and looked down upon humankind youd fair dinkum shake your head. big business has had it way to good for too long. interest rate cuts now or ill take my money out of the banks and hide it in my cupboard.
by mighty_tiger_79 » Tue May 01, 2012 3:13 pm
by scoob » Tue May 01, 2012 3:24 pm
mighty_tiger_79 wrote:down by 50 basis points to 3.75 % cash rate
the banks wont pass all that on, i reckon we would be lucky for it to go down by .30 tops
by southee » Tue May 01, 2012 4:14 pm
scoob wrote:mighty_tiger_79 wrote:down by 50 basis points to 3.75 % cash rate
the banks wont pass all that on, i reckon we would be lucky for it to go down by .30 tops
Of course they will MT otherwise they will have to answer to Wanye Swan
by once_were_warriors » Tue May 01, 2012 8:58 pm
by Psyber » Wed May 02, 2012 12:17 pm
Loan writing is now inhibited by new federal rules too.once_were_warriors wrote:They will drop them accordingly.
Lot of pressure on at the moment to write new loans , can't keep going for ever with no growth on the books.
by once_were_warriors » Wed May 02, 2012 3:07 pm
Psyber wrote:Loan writing is now inhibited by new federal rules too.once_were_warriors wrote:They will drop them accordingly.
Lot of pressure on at the moment to write new loans , can't keep going for ever with no growth on the books.
Now the banks can only lend amounts based on your income flow being adequate to pay for them on last years figures.
They can't lend you more than that income can cover even if you have other assets you are prepared to sell to cover the loan if necessary.
That stifles investment opportunities.
I had a project in mind but couldn't launch it without a bigger loan than my previous years income covered.
The fact that I could choose, in future, to draw more than the legal minimum from my superannuation fund to cover it, or sell other assets, didn't help.
My bank manager said, "Last year we'd have said 'Sure how much do you need?' "
by Psyber » Wed May 02, 2012 4:48 pm
Bank rates have never been tied to RBA rates, though they have tended to move in the same general direction most of the time.once_were_warriors wrote: More towards thinking that home ownership purchases would be determined by house prices,interest rates and job security. If banks don't start providing confidence that variable rates are going to rise and fall on par with the RBA cash rates , then people aren't going to be as confident in commiting to mortgages.
by james07 » Wed May 02, 2012 5:08 pm
Psyber wrote:Loan writing is now inhibited by new federal rules too.once_were_warriors wrote:They will drop them accordingly.
Lot of pressure on at the moment to write new loans , can't keep going for ever with no growth on the books.
Now the banks can only lend amounts based on your income flow being adequate to pay for them on last years figures.
They can't lend you more than that income can cover even if you have other assets you are prepared to sell to cover the loan if necessary.
That stifles investment opportunities.
I had a project in mind but couldn't launch it without a bigger loan than my previous years income covered.
The fact that I could choose, in future, to draw more than the legal minimum from my superannuation fund to cover it, or sell other assets, didn't help.
My bank manager said, "Last year we'd have said 'Sure how much do you need?' "
by Psyber » Thu May 03, 2012 2:39 pm
Yeah.james07 wrote: this was in part the reason of the GFC hit, great ideas with no financial backing
by Sojourner » Wed Aug 15, 2012 11:26 am
by dedja » Wed Aug 15, 2012 11:57 am
by toot toot » Wed Aug 15, 2012 2:25 pm
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