My thoughts exactly. And this is likely the thoughts of Lowe and his board. They're claiming that he is in an ivory tower and doesn't know the blight of working australians. That's also a little rich coming from people with leveraged loans against assets that are likely 1mil+.
Philip Lowe's days are numbered?
- Thread starter brerwallabi
- Start date
-
- Tags
- philip lowe
- Joined
- 3 July 2009
- Posts
- 27,336
- Reactions
- 24,067
Exactly, who are the media going to blame when Lowe is gone and inflation and unemployment keep rising ?
Who's the next cab off the rank? It might be Twiggy he has reduced numbers and the unemployment rate has gone up, he will do. ?
Not only did Lowe lure the house buyers into borrowing money, Twiggy lured them into jobs and now some are probably going to get laid off.
How are they going to cope with rising inflation, Twiggy should be sacked for employing them, oh he can't he just about owns the company. ? ? ?
Fortescue ‘family’ about to get smaller
Staff lured to work for Fortescue Future Industries on the promise of doing good as well as earning big wages now face the axe.
Last edited:
- Joined
- 9 March 2019
- Posts
- 103
- Reactions
- 189
I took it to mean that inflation hurts all households. Inflation erodes us all.
Higher interest rates don't hurt all households and shouldn't negatively impact the savers too much.
Remember when inflation started to become an issue. It's was so-called "transitory". I believe any real world fiscally responsible person could have seen through that. Yet others took the opportunity to load up on debt.
Now let's make Lowe accountable.
- Joined
- 3 July 2009
- Posts
- 27,336
- Reactions
- 24,067
Very true, the savers have been earning sweet FA, on the money they have been lending to the borrowers, over the last 10 years, while house prices were climbing. There wasn't much said about that.
Now all of a sudden those who borrowed the money to gear up and can't afford to pay it back, it becomes a national tragedy, yet the prices are still much higher than they were a couple of years ago. Sounds like a narrative to me.
Maybe the savers should just list themselves as a charity and never get any return on their money and the borrowers should always be able to log a profit.
What a wonderful world, better than the casino. ?
We have just been through one phase and are now entering the next, it isn't as though it hasn't happened before. ?
From the graphs, it looks like the plebs maxed out in 2016, the smart ones got out and from then on those who thought they were on a no lose ponzi, jumped in.
Interest rates kept falling but the prices levelled out, suggests to me the plebs budgets maxed out.
This graph shows why using Sydney/Melbourne prices as a gauge of Australian house prices is a distortion.
Interestingly as the media is centralised in Sydney and Melbourne, that seems to be where all the woe is coming from.
Last edited:
- Joined
- 14 February 2005
- Posts
- 15,180
- Reactions
- 17,162
Pick pretty much any industry and it seems money's no object in terms of how things are being done at the moment.
Everything from infrastructure to consumer spending, there seems to be little focus on containing costs and maximising value.
IFocus
You are arguing with a Galah
- Joined
- 8 September 2006
- Posts
- 7,526
- Reactions
- 4,560
What's the average for historical interest rates ? 7% ish media are screaming before they get to 4%.
Every chance inflation rolls over, rates stop rising even start easing and then inflation takes off again then what?
I think Lowe is gone, easy scape goat for the bad news not that I agree as already said not much else he can do.
Every chance inflation rolls over, rates stop rising even start easing and then inflation takes off again then what?
I think Lowe is gone, easy scape goat for the bad news not that I agree as already said not much else he can do.
over9k
So I didn't tell my wife, but I...
- Joined
- 12 June 2020
- Posts
- 5,244
- Reactions
- 7,355
It's pure politics - over in the 'states they're complaining that inflation is too high and powell hasn't done enough.
Here, it's the liberal party/real estate lobby/boomers with 15 investment properties complaining that asset prices are getting pummeled.
Lowe has done nothing wrong. Nothing. The only question is whether he's going to be the scapegoat or not. The fact that we're getting all this carryon is probably why the last bounce wasn't a 50 when it should have been.
Otherwise, I expect a 25 every single time now.
over9k
So I didn't tell my wife, but I...
- Joined
- 12 June 2020
- Posts
- 5,244
- Reactions
- 7,355
Or you dump interest rates and send house prices soaring, which is inflating their price.
But that isn't the bad kind of inflation so we don't talk about that
Exactly! Thankyou! At least someone else gets it.
If you considered house prices rises to be inflation we've had virtually runaway inflation for more than 20 years.
- Joined
- 14 February 2005
- Posts
- 15,180
- Reactions
- 17,162
Given that the majority of the population does end up buying one, they absolutely should be considered as a very real part of any measure of inflation and a big part at that.
If wages and Income Tax brackets were tied to house prices, the business lobby and government would change their tune incredibly quickly on all this.
over9k
So I didn't tell my wife, but I...
- Joined
- 12 June 2020
- Posts
- 5,244
- Reactions
- 7,355
My point was that they aren't and there's a very "good" reason why and it isn't a good one.Given that the majority of the population does end up buying one, they absolutely should be considered as a very real part of any measure of inflation and a big part at that.
If wages and Income Tax brackets were tied to house prices, the business lobby and government would change their tune incredibly quickly on all this.
This game was rigged by Howard & co the better part of 30 years ago. It is no exaggeration to say we are at the endpoint of a 25 year long artificial inflation (bubble) of house prices and this is literally the first time in an entire generation where someone, anyone, is even beginning to do something about it and it's not even a direct action against it, it's actually a side effect of actions against something else.
The fact that the general public are pointing the finger at lowe is an excellent demonstration of just how powerful the media/just how easily misled the general public actually is.
Lowe undoubtedly also knows all of this and knows that the politicians' donors do NOT want him raising rates and this is undoubtedly the only reason they aren't significantly higher already.
The only way it will change is if he starts getting crucified for letting inflation run too hot and with the media in the hands of the real estate lobby we all know that will never happen.
Combine this with the politicians being in the hands of the real estate lobby too and all we need is a few political donations to get the inflation numbers fudged (as if they aren't being fudged already) and this will then solve the "inflation" and therefore interest rates rising problem and so asset (house) prices can then continue on their merry way.
brerwallabi
The Oracle
- Joined
- 5 July 2004
- Posts
- 1,044
- Reactions
- 795
Who is brave enough to wipe out negative gearing, well the pollies wont.
Good or bad I don’t now.
Maybe a three year period to bring b@ck to affordable prices and then money goes ………
Good or bad I don’t now.
Maybe a three year period to bring b@ck to affordable prices and then money goes ………
- Joined
- 3 July 2009
- Posts
- 27,336
- Reactions
- 24,067
As I posted a few posts back, the issue is very Sydney/ Melbourne/ Canberra centered, how you stop the ponzi there is the real issue.
If it isn't stopped I'm sure the problem will end up just transferring to the other capital cities, rich people gaming the system will just look further afield to move the ponzi to a more affordable area.
The politicians really need to put a lid on it, or Australia will end up with an insurmountable wealth gap, ATM it is only affecting the SE coast, if it isn't stopped it will naturally spread IMO.
But the very same people who claim they want it stopped, are the people gaining the most from keeping it going, who has the money in Sydney/ Melbourne/ Canberra.
As @over9k says, why would you kill the golden goose, if it's your goose?
A much better tactic is to find a scapegoat, build a narrative around them and send the pitchfork crowd into a frenzy.
As can be seen by the chart, price growth in areas other than Sydney/ Canberra/ Melbourne, aren't excessive, but IMO that will change as the game moves on to greener pastures.
Just my two cents worth.
If it isn't stopped I'm sure the problem will end up just transferring to the other capital cities, rich people gaming the system will just look further afield to move the ponzi to a more affordable area.
The politicians really need to put a lid on it, or Australia will end up with an insurmountable wealth gap, ATM it is only affecting the SE coast, if it isn't stopped it will naturally spread IMO.
But the very same people who claim they want it stopped, are the people gaining the most from keeping it going, who has the money in Sydney/ Melbourne/ Canberra.
As @over9k says, why would you kill the golden goose, if it's your goose?
A much better tactic is to find a scapegoat, build a narrative around them and send the pitchfork crowd into a frenzy.
As can be seen by the chart, price growth in areas other than Sydney/ Canberra/ Melbourne, aren't excessive, but IMO that will change as the game moves on to greener pastures.
Just my two cents worth.
over9k
So I didn't tell my wife, but I...
- Joined
- 12 June 2020
- Posts
- 5,244
- Reactions
- 7,355
Additionally, last I checked, there's a sum total of two politicians in the entire country that don't own at least one investment property. Two.As I posted a few posts back, the issue is very Sydney/ Melbourne/ Canberra centered, how you stop the ponzi there is the real issue.
If it isn't stopped I'm sure the problem will end up just transferring to the other capital cities, rich people gaming the system will just look further afield to move the ponzi to a more affordable area.
The politicians really need to put a lid on it, or Australia will end up with an insurmountable wealth gap, ATM it is only affecting the SE coast, if it isn't stopped it will naturally spread IMO.
But the very same people who claim they want it stopped, are the people gaining the most from keeping it going, who has the money in Sydney/ Melbourne/ Canberra.
As @over9k says, why would you kill the golden goose, if it's your goose?
A much better tactic is to find a scapegoat, build a narrative around them and send the pitchfork crowd into a frenzy.
As can be seen by the chart, price growth in areas other than Sydney/ Canberra/ Melbourne, aren't excessive, but IMO that will change as the game moves on to greener pastures.
Just my two cents worth.
View attachment 153098
You can surmise everything necessary from that fact alone.
- Joined
- 3 November 2013
- Posts
- 1,568
- Reactions
- 2,771
Credit has been getting cheaper over the past 40 years. Even during previous hiking cycles, the terminal rate never surpassed the previous cycles' maximum.
This is the first time in a generation we see that reversal - the US has already hiked above the 2008 rate and is fast approaching 2000.
This is the first time in a generation we see that reversal - the US has already hiked above the 2008 rate and is fast approaching 2000.
- Joined
- 3 July 2009
- Posts
- 27,336
- Reactions
- 24,067
Yes I think Lowe is understating how nervous he is about the wage/price spiral, with unemployment so low wages can easily be forced up, I guess the 200,000 skilled workers will be fast tracked. Check for Gday adverts overseas, should be a good bellwether.
Well, if you are correct, that would make sense. If he wasn't understating it, there would be a spiral of panic. If I were him, I'd be keeping things close to the chest as people are acting on hightened emotion (fear) so any response won't be proportional.
- Joined
- 8 June 2008
- Posts
- 12,784
- Reactions
- 18,693
For the 200000 workers, in your dreams, with Labour in you will get 500000 more Centrelink recipients
Proof in the pudding:
Shravan is a much-needed skilled migrant. But he is planning to leave Australia
Three-and-a-half years ago, Shravan Nagesh relocated to Australia looking for better prospects and opportunities. Instead he found disillusionment and disappointment.
www.abc.net.au
What you really get when you look at figures provided and not the ABC" we should let anyone in " is that Australia has lost credibility for truly skilled immigrants .
But no worries plenty will line up for welfare.done that seen that ..says the EU
- Joined
- 3 July 2009
- Posts
- 27,336
- Reactions
- 24,067
I wonder why Lowe doesn't just ask the politicians, what they are doing about the housing affordability issue, let's be honest they have a lot more triggers than the RBA have. ?
Reserve Bank boss Philip Lowe will face a barrage of questioning this week as parliamentarians turn up the heat on the under siege governor.
Dr Lowe is listed to appear before a senate estimates hearing on Wednesday, followed by a House committee on Friday.
Reserve Bank boss Philip Lowe will face a barrage of questioning this week as parliamentarians turn up the heat on the under siege governor.
Dr Lowe is listed to appear before a senate estimates hearing on Wednesday, followed by a House committee on Friday.
- Joined
- 8 June 2008
- Posts
- 12,784
- Reactions
- 18,693
Look at the local council restrictions and fees and your rental market is sorted.i posted a SE qld examples in inflation thread.
- Joined
- 28 August 2022
- Posts
- 6,531
- Reactions
- 10,542
Hmm Damn him. Damned if he does and damned if he dosn't. But does he really know that the real world people are suffering.