Interest rate cut

[Julia]

T
And I think - what a lack of genorosity and a dog eat dog world we live in.


Brad

Good God, you have the nerve to post this after your previous ill tempered comments!!!

 

[Gundini]

hello,

just keep putting it away,

20-30% of gross income is the way, chuck it somewhere brothers

thankyou
robots

Must admit that is very amusing robot...

 

[moXJO]

Not correct.

A negative savings rate is what brought the US down, and if we head towards that, our banks are absolutely rooted, and everything that goes with it.

If no-one is saving, no-one can then go on to buy your asset for more than you paid.

There needs to be a balance between spending for the growth of the nation and saving. I think Australia has tipped the balance in favor of splurging with the best of them which is a big concern.

I was talking to a couple at a BBQ the other day that mentioned they had spent $70k (on $hite) in a matter of weeks and how it was nothing these days. This is a family with 4 kids mortgaged to the hilt two big shiny cars etc. And this is a common theme among most people I know. The other thing I notice is the size of the houses I am working on now. It can take 3-4 times as long. And I could probably fit 2-4 of the houses I use to work on back in the late eighties inside them. I can't understand how they can afford all these extravagant lifestyles of changing cars every year and renovations and holidays. Perhaps I need to change careers.

 

[Kimosabi]

1% was a good move by the RBA in my opinion. They wanted to:

a) boost confidence,
b) make sure the banks actually passed on a MINIMUM .5% rate cut, which they now have no reason not to do,
c) prevent the inevitable drop of rates next month,
d) look like they were doing something serious

All points achieved, no-one can say this doesn't inspire SOME confidence back into a panicked market.

Well done to them. They overdone the rate rises that we had earlier this year/late last and are simply correcting them back down to where they should be.

All this drop in Interest Rates means is that we are in Recession, our debt masters just haven't told us about it yet.

Oh did I mention that the money the Reserve Bank so lovingly supplies us with is just debt anyway. So not only do they lovingly charge us interest to borrow their debt money, they further lovingly depreciate our debt money through Inflation as well.

I think the Reserve Bank of Australia's logo tell's the story, they just love ripping the guts out of the Australian People.

And to finish my rant I would love for someone to explain to me why an "Australian Legal Tender" $50 1/2oz Gold Coin costs $925.00 in plastic money.



http://www.perthmint.com.au/catalog...k-lizard-proof-gold-coins.aspx?ProductID=1715

How can an Australian Legal Tender coin be $50.00 and $925.00???

This is a quote from the Mints website on these coins being legal tender:

Australian Legal Tender

Issued as legal tender under the Australian Currency Act 1965, the coins depict Ian Rank-Broadley's effigy of Her Majesty Queen Elizabeth II on the obverse.

And if anyone would like to know who "REALLY" owns the Reserve Bank of Australia, watch this video:

 

[robots]

hello,

would just like to thank the banks, mainly the big 4 for giving people a 80 basis point cut,

this is fantastic news and shows the banks do act responsibly for all and will join in the hard work in keeping australia on top of the world,

thankyou
robots

 

[Buddy]

Brad, a couple of weeks ago you were furious with the banks.
You later suggested you had been quite unreasonable in what you said.

Now it seems, for reasons known only to yourself, you are being malicious towards depositors. Why?
As one of many people with savings who have done it fairly hard over the years to get to a position of financial security, I really take exception to your comments.

With this interest rate cut, all the attention has been on the relief to mortgage holders. I have not heard one public comment about the disadvantage it will mean to depositors who are seeking some sort of security for their capital, rather than risk further depreciation in the volatile stock market.

I don't know what your problem is, but if you have to strike out at someone to make yourself feel better, maybe think a bit more carefully about the target.

I'm trying hard not to sound as angry as I feel.

Julia,
Maybe Brad has a nasty streak in him/her, or is just a ****e stirrer.

And thank you Assiejeff, you are a true Aussie. I am humbled by your words of support, and in the fullness of time I shall do my duty and take up the challenge for the betterment of this great country of ours, currently ruled by Shmocks. BUT I NEED MORE THAN 1 VOTE.


I watched a strange thing on television last night. In fact the only thing stranger thing I have ever seen was when an alien spaceship landed in my back yard, a little green girl disembarked and spoke to my cat in catspeak. so...........

There was this ABC reporter (dont know his name) interviewing Malcolm Turnbull about passing on the full cut in interest. No surprise in what MT was saying - I would probably do the same thing if I was in his position. But what really intrigued me was there was this dumb asses wnaker ABC reporter defending the government and defending the banks. OK, I can live with the fact that you cannot say anything against the labor party and labor government on the ABC - that's a given! But to defend the banks????????? A true wnaker. It is simply un-Australian not to bash the banks. This man should be removed forthwith from the ABC, sent to the labour gangs, and fed on stale bread and lard. Or maybe he should join krudds team.
Off with his head, I say!

 

[MrBurns]

hello,

would just like to thank the banks, mainly the big 4 for giving people a 80 basis point cut,

this is fantastic news and shows the banks do act responsibly for all and will join in the hard work in keeping australia on top of the world,

thankyou
robots

I agree that it was the right thing to do but it wont save anyone from what's to come. No point having low interest rates if you haven't got a job.

Malcolm Turbull is going a bit too far insisting that the banks pass on the extra .2% If the banks fall over we're all stuffed, better hold fire on them for the time being.

 

[Kimosabi]

I think this picture sums things up nicely...

 

[Julia]

=MrBurns;346177
Malcolm Turbull is going a bit too far insisting that the banks pass on the extra .2% If the banks fall over we're all stuffed, better hold fire on them for the time being.

I agree. We're seeing more evidence of this today.
He is, astonishingly, claiming the credit for the RB having moved 100 b.points!

Buddy, I saw that interview last night with Malcolm Turnbull. Whilst I don't agree with his position, I'd say it was one of the most incompetent bits of journalism I've ever seen on the ABC. Hope Kerry O'Brien is back soon.

 

[MrBurns]

I agree. We're seeing more evidence of this today.
He is, astonishingly, claiming the credit for the RB having moved 100 b.points!

Buddy, I saw that interview last night with Malcolm Turnbull. Whilst I don't agree with his position, I'd say it was one of the most incompetent bits of journalism I've ever seen on the ABC. Hope Kerry O'Brien is back soon.

Yes I really wouldn't have expected the banks to give 80% of that away so it was a good result for mortgage holders.

I think it reflects the seriousness of the situation that we got a 1% cut in the first place.

Dunno why Kerry O'Brien would be away during this ?

 

[Tysonboss1]

And to finish my rant I would love for someone to explain to me why an "Australian Legal Tender" $50 1/2oz Gold Coin costs $925.00 in plastic money.

]

Much the same way a rare stamp can be worth more than it's face value,

Plus the gold in that coin is alone is worth more than it's face value.

 

[BradK]

Julia,
Maybe Brad has a nasty streak in him/her, or is just a ****e stirrer.

Bit of both dont like to think of it as nasty Buddy! Passionate... sorry for any offence Julia. HOWEVER, I do stand by my comments on anyone who continually puts the boot into overstretched mortgage holders, especially those that have the NERVE to off their baby boomed houses at 7 times annual income.

If that is offensive - well, I can tell you it is much more offensive being told how irresponsible you are everyday as if being hauled into the prinicipals office.

Thanks Rudd and the banks for 80 basis points

Now I can refinance and have my plasma

Brad

PS. Here is a sampling of comments from today news.com.au to illustrate what I am talking about

Greed Greed Greed has had its day . people using equity in their house to buy tv's or cars or go on holidays are about to get an costly education . dont you love it when people brag about their property investments - i own $2m in property - never gets mentioned that they owe the bay $1.99million .

Finally Justice - i am sick of people with no money trying to keep up with the jones's . Easy credit has allowed far too many people to think they are rich. This capitulation will finally seperate the men from the boys ..

 

[Buddy]

Bit of both dont like to think of it as nasty Buddy! Passionate... sorry for any offence Julia. HOWEVER, I do stand by my comments on anyone who continually puts the boot into overstretched mortgage holders, especially those that have the NERVE to off their baby boomed houses at 7 times annual income.

If that is offensive - well, I can tell you it is much more offensive being told how irresponsible you are everyday as if being hauled into the prinicipals office.

Thanks Rudd and the banks for 80 basis points

Now I can refinance and have my plasma

Brad

PS. Here is a sampling of comments from today news.com.au to illustrate what I am talking about

Greed Greed Greed has had its day . people using equity in their house to buy tv's or cars or go on holidays are about to get an costly education . dont you love it when people brag about their property investments - i own $2m in property - never gets mentioned that they owe the bay $1.99million .

Finally Justice - i am sick of people with no money trying to keep up with the jones's . Easy credit has allowed far too many people to think they are rich. This capitulation will finally seperate the men from the boys ..

I think I understand the point you are generally trying to make. But can you explain what "especially those that have the NERVE to off their baby boomed houses at 7 times annual income" means?

One thing that I am equally "passionate about" is why people that bother to actually save are so severely dealt with by the government and ATO (not to mention Wall St, et al).

So the government encourages, sorry cancel that - read FORCES, the masses into compulsory superannuation (which is increasingly looking like it is worth SFA) but taxes the crap out of those who actually make the effort to save money, and not rely on debt to finance their lifestyles. The system as it stands (or did stand), rewards those in debt, are prepared to gamble with other people's money, pay for their "excessive beyond means" lifestyle by debt, and penalises those who pay as they go. Really mate the whole system is cocked up, not sustainable, and is due for a big tumble.

 

[Julia]

Yep, I second everything Buddy has said. Why should those who have lived within their means, resisted buying stuff on endless credit, be constantly penalised?

The rate cut is going to diminish the income of thousands of self funded retirees, and those trying to actually save for home ownership.

 

[gfresh]

:iagree:

It's interesting the different perspective you get on this sort of forum, as compared to most others, and the news outlets. Obviously we're savers, or at least have excess money to invest in sharemarkets (or other investments), so we are probably quite conservative with what we borrow as to what we earn. This seems to be quite in contrast to the general status quo.

It's disappointing in some ways all the discounts you get for borrowing money, as opposed to good old fashioned savings. This in fact allow others to borrow more, via the good old fractional reserve system. If you borrow to buy an investment property, you receive discounts on the interest paid. You even can claim discounts if you borrow to invest in the sharemarket (via a margin loan).. yet you plonk your money in a bank account, and you get taxed at your normal tax rate. Where is the incentive? None really.

Expecting this to change is difficult though. I can see the traditional economists side also, that money sitting in a bank account achieves no productive output for an economy. But it does provide one certain thing, stability!

 

[BradK]

I think I understand the point you are generally trying to make. But can you explain what "especially those that have the NERVE to off their baby boomed houses at 7 times annual income" means?

One thing that I am equally "passionate about" is why people that bother to actually save are so severely dealt with by the government and ATO (not to mention Wall St, et al).

So the government encourages, sorry cancel that - read FORCES, the masses into compulsory superannuation (which is increasingly looking like it is worth SFA) but taxes the crap out of those who actually make the effort to save money, and not rely on debt to finance their lifestyles. The system as it stands (or did stand), rewards those in debt, are prepared to gamble with other people's money, pay for their "excessive beyond means" lifestyle by debt, and penalises those who pay as they go. Really mate the whole system is cocked up, not sustainable, and is due for a big tumble.

Agree Buddy, absolutely utterly agree.

My point is not to wish bad on savers! Not at all. Point is, it is a bit rich for people who are cashed up AS A RESULT of selling their property(ies) for hugely inflated sums - and then turn around to like people who they sold their nest eggs to and start throwing stones because they are up to the throats in debt.

Yes, individuals have to take responsibility - but what about the spriukers, the tv shows - the block, morning shows, current affairs shows, r/e industry - who ramped this thing into the middle of 2050. What about the 'educators' - the 'experts' who said that 'property doubles every seven years' - get in now!

I was entering the r/e market at this time and the key sensibility was 'Urgency'.

Plasma TV's, holidays, cars, etc. from equity? Not real bright, but read above and I think responsibility must be shared. Also, those VERY people do not need to be told time and again how stupid they are - they KNOW the lessons. Oh yes, believe me they have learned their lesson.

HOWEVER, WHO ARE THESE PEOPLE that spend on this type of stuff? Not my friends or work colleagues or extended family. Anyway, in seven years I will be debt free - I have one mortgage - no car loans, credit card is paid at the end of every month (I have never paid one cent in interest and I get about $500 worth of gift vouchers every year on rewards to hand out as presents at Christmas each year - so I have Mastercard over a barrell - priceless )

But - this savers vs mortgage thing is class warfare.

Three ironies:

1. I am probably the most vocal about it even though I hate it and I'm clearly coming across as a complete tosser
2. Karl Marx has A LOT to say right now about the base and the superstructure!
3. Islamic banking is looking like a great alternative - shared responsibility - I am going to do some more research on this

Brad

 

[chops_a_must]

My point is not to wish bad on savers! Not at all. Point is, it is a bit rich for people who are cashed up AS A RESULT of selling their property(ies) for hugely inflated sums - and then turn around to like people who they sold their nest eggs to and start throwing stones because they are up to the throats in debt.

Mate, you can't get over the fact that a lot here are savers who have never bought a house, but have saved in order to be able to buy one.

Stop defending those without a brain cell to rub together who made crap calls about their financial lives, and who can't take responsibility for their own actions.

 

[Tysonboss1]

The system as it stands (or did stand), rewards those in debt, are prepared to gamble with other people's money, and penalises those who pay as they go. Really mate the whole system is cocked up, not sustainable, and is due for a big tumble.

If it wasn't for leveraged investors, the "Savers" stock piles of cash would not be earning interest at all. You can't have "savers" earning interest without borrowers paying interest.

Secondly our system rewards people that take risks as these people are generally more productive, So offcourse a person who just banks money and earns interest not really taking any risk should not have as big a returns as the person who borrows that money and invests it in somthing that adds to the economy

 

[chops_a_must]

Secondly our system rewards people that take risks as these people are generally more productive, So offcourse a person who just banks money and earns interest not really taking any risk should not have as big a returns as the person who borrows that money and invests it in somthing that adds to the economy

But with increased risk, comes an acknowledgement of potentially larger losses. Not many see that either.

 

[cuttlefish]

The problem with houses is they are also homes. This complicates the factors that motivate people to buy and sell them - there's a lot of human factors involved - particularly when people start to have kids and want to create a stable environment for them rather than be subjected to the vagaries of a landlord deciding when they do or don't decide to move house.

Not all mortgages are motivated by pure greed.


I think its also interesting to see how much rental demand and vacancy rates change when supply of new property into the areas where there is demand dries up. Inner/middle ring Sydney vacancy rates remain tight and rents have risen significantly due to the slowdown in development in the past few years in these areas.