Interest Rates/Aust economy discussion

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Re: Interest Rates/Aust economy discussion

Postby RocketRoosterJr » Wed Oct 02, 2019 11:54 am

The US economy had crazy low rates before the last financial fiasco, so the public spent up big and when the market fell over eceryone got to share in the pain!
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Re: Interest Rates/Aust economy discussion

Postby Booney » Wed Oct 02, 2019 11:57 am

RocketRoosterJr wrote:The US economy had crazy low rates before the last financial fiasco, so the public spent up big and when the market fell over eceryone got to share in the pain!


With banks lending people who could ill afford it sums they were never going to be able to pay back.

This current plight spells disaster for the Australian economy.
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Re: Interest Rates/Aust economy discussion

Postby Dutchy » Wed Oct 02, 2019 12:00 pm

Q. wrote:
Dutchy wrote:Doesn't matter how much they cut rates by, it will not stimulate the economy until they take the handbrake off the lenders


That's the whole point of this exercise, sustain the world's biggest Ponzi property market by continuing to lower rates. When it comes undone, it will be catastrophic.


Not sure what you mean here?
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Re: Interest Rates/Aust economy discussion

Postby Booney » Wed Oct 02, 2019 1:07 pm

Dutchy wrote:
Q. wrote:
Dutchy wrote:Doesn't matter how much they cut rates by, it will not stimulate the economy until they take the handbrake off the lenders


That's the whole point of this exercise, sustain the world's biggest Ponzi property market by continuing to lower rates. When it comes undone, it will be catastrophic.


Not sure what you mean here?


Rates drop, people buy houses beyond their "normal" means because of the low rates. Rates invariably go up and people can't afford to stay in their house and debt builds, disposable income drops, the economy crashes and burns.
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Re: Interest Rates/Aust economy discussion

Postby Dutchy » Wed Oct 02, 2019 1:15 pm

Booney wrote:
Dutchy wrote:
Q. wrote:
Dutchy wrote:Doesn't matter how much they cut rates by, it will not stimulate the economy until they take the handbrake off the lenders


That's the whole point of this exercise, sustain the world's biggest Ponzi property market by continuing to lower rates. When it comes undone, it will be catastrophic.


Not sure what you mean here?


Rates drop, people buy houses beyond their "normal" means because of the low rates. Rates invariably go up and people can't afford to stay in their house and debt builds, disposable income drops, the economy crashes and burns.


Can't happen, regulators have ensured this isn't the case for at least the last 24 months.
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Re: Interest Rates/Aust economy discussion

Postby Q. » Wed Oct 02, 2019 1:19 pm

Dutchy wrote:
Q. wrote:
Dutchy wrote:Doesn't matter how much they cut rates by, it will not stimulate the economy until they take the handbrake off the lenders


That's the whole point of this exercise, sustain the world's biggest Ponzi property market by continuing to lower rates. When it comes undone, it will be catastrophic.


Not sure what you mean here?


Sustain inflated house prices by ensuring demand through record low interest rates
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Re: Interest Rates/Aust economy discussion

Postby Dutchy » Wed Oct 02, 2019 1:53 pm

95% of people need to borrow to purchase a house, it has never been harder to get a loan for this, despite the lower interest rate environment.

Government are lower rates to stimulate the economy, but at the same time over regulate the banks, nothing is changing for years to come.
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Re: Interest Rates/Aust economy discussion

Postby DOC » Wed Oct 02, 2019 11:00 pm

Dutchy wrote:95% of people need to borrow to purchase a house, it has never been harder to get a loan for this, despite the lower interest rate environment.

Government are lower rates to stimulate the economy, but at the same time over regulate the banks, nothing is changing for years to come.



Over regulated?
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Re: Interest Rates/Aust economy discussion

Postby Dutchy » Thu Oct 03, 2019 10:46 am

DOC wrote:
Dutchy wrote:95% of people need to borrow to purchase a house, it has never been harder to get a loan for this, despite the lower interest rate environment.

Government are lower rates to stimulate the economy, but at the same time over regulate the banks, nothing is changing for years to come.



Over regulated?


Correct, it had to happen, but has gone way too far
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Re: Interest Rates/Aust economy discussion

Postby Psyber » Sat Oct 05, 2019 12:12 pm

It is looking like it was in the 1960s and 1970s now with the banks not lending despite low interest rates. By contrast by the early 1980s I had the experience of needing a quick loan of about $50K and the local manager put the dough in my account same day and popped into my office the next day to get me to sign the paperwork.

Buying on big borrowing levels at low interests rates is risky. In 1987-88 slump I knew several people who found their homes were suddenly worth less than they owed and rising interest rates had pushed their payments up beyond what they could afford. They were mostly houses in the outer suburbs, but at that time the AMA owed more on its new Ward St premises than the building was suddenly worth due to the drop in value...
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Re: Interest Rates/Aust economy discussion

Postby mighty_tiger_79 » Tue Mar 03, 2020 2:08 pm

Down again.
0.5%
Booooooooooo
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Re: Interest Rates/Aust economy discussion

Postby Corona Man » Tue Mar 03, 2020 2:19 pm

mighty_tiger_79 wrote:Down again.
0.5%

Won’t be long before those with a mortgage are charging the lenders interest.
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Re: Interest Rates/Aust economy discussion

Postby Booney » Tue Mar 03, 2020 2:28 pm

mighty_tiger_79 wrote:Down again.
0.5%


Morrison/Frydenberg will have to throw another stimulus package out in the very near future. With the bushfires and coronavirus impacting upon the market, the lack of consumer confidence and it's clear the RBA has no confidence in the government to turn things around we're heading into dangerous territory. Expect to get yourself a new TV in the next 6 months, or, you might get that Keginator you've been wanting. :lol:

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Re: Interest Rates/Aust economy discussion

Postby mighty_tiger_79 » Tue Mar 03, 2020 2:35 pm

Booney wrote:
mighty_tiger_79 wrote:Down again.
0.5%


Morrison/Frydenberg will have to throw another stimulus package out in the very near future. With the bushfires and coronavirus impacting upon the market, the lack of consumer confidence and it's clear the RBA has no confidence in the government to turn things around we're heading into dangerous territory. Expect to get yourself a new TV in the next 6 months, or, you might get that Keginator you've been wanting. [emoji38]

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Re: Interest Rates/Aust economy discussion

Postby Corona Man » Tue Mar 03, 2020 2:37 pm

I could do with a new Tele the 55” is just so meh now.
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Re: Interest Rates/Aust economy discussion

Postby mighty_tiger_79 » Tue Mar 03, 2020 3:01 pm

Corona Man wrote:I could do with a new Tele the 55” is just so meh now.
Im just battling along with my 40"

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Re: Interest Rates/Aust economy discussion

Postby Footy Chick » Tue Mar 03, 2020 3:02 pm

Corona Man wrote:I could do with a new Tele the 55” is just so meh now.


Gawd, I just bought a 50 and think that's pretty nifty! :lol: :oops:
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Re: Interest Rates/Aust economy discussion

Postby mighty_tiger_79 » Tue Mar 03, 2020 3:07 pm

I seen Commonwealth/Westpac passing on full .25

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Re: Interest Rates/Aust economy discussion

Postby Booney » Tue Mar 03, 2020 3:10 pm

mighty_tiger_79 wrote:I seen Commonwealth/Westpac passing on full .25


If you're on a variable home loan. Those on fixed loans won't see it.

Basically, the 0.25% makes a $400,000 mortgage drop by $56 a month.
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Re: Interest Rates/Aust economy discussion

Postby heater31 » Tue Mar 03, 2020 3:16 pm

Booney wrote:
mighty_tiger_79 wrote:I seen Commonwealth/Westpac passing on full .25


If you're on a variable home loan. Those on fixed loans won't see it.

Basically, the 0.25% makes a $400,000 mortgage drop by $56 a month.
But those who are about to sign up......
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