Australian (ASX) Stock Market Forum

Philip Lowe's days are numbered?

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waterbottle said:
Poor Phil Lowe.

I did hear on the ABC that the review found that there was not much discussion amongst board members RE: outcome for rate decisions, and that this was typically dictated by Phil Lowe. If so, I would agree that the board would need a revamp - I would expect the board to be composed of people who'd be able to argue their point rather than yield to a single individual when things get tough. Although that may be a reflection of the possibly poor selection process that is already in place.

I can't see how another layer of regulation would help the process....
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Phil should share the blame .

there is plenty to go around ,
YO ! Phil , you can't raise rates for two months , we are going to have a Federal election , or ease up on the hikes , the banks are worried about toxic loans

as much as i am disappointed with Phil , he isn't 100% to blame ( he didn't appoint himself as RBA governor ) and the economy had issues even before the GFC
 
divs4ever said:
a second board of experts ??

where is the first one ??
given the current run rate . maybe the first board went for a l-o-n-g holiday ( either physically or mentally )

why not just stop paying the first board , and start paying some new 'experts '
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Better still sack the lot and start with a board who hopefully knows left from right.
 
Mistakes were made due to poor judgement.
if the review states that there needs to be a second panel to stop groupthink then lets do it.
When mistakes are made it costs the country billions of dollars sometimes.
Bit to read, lot of detail, will go though it over the weekend.
 
waterbottle said:
Poor Phil Lowe.

I did hear on the ABC that the review found that there was not much discussion amongst board members RE: outcome for rate decisions, and that this was typically dictated by Phil Lowe. If so, I would agree that the board would need a revamp - I would expect the board to be composed of people who'd be able to argue their point rather than yield to a single individual when things get tough. Although that may be a reflection of the possibly poor selection process that is already in place.

I can't see how another layer of regulation would help the process....
Click to expand...

His job is to get inflation where it needs to be. wider monetary policy should be the gov not RBA. the fact it will make it hard on ppl with mortgages shouldn't really be a factor in his decisions IMO. I also think it detracts from years of poor policy from the various govs and also from the banks. just seems like another passing the buck without addressing the issues on a systematic and substantial view.

divs4ever said:
Phil should share the blame .

there is plenty to go around ,
YO ! Phil , you can't raise rates for two months , we are going to have a Federal election , or ease up on the hikes , the banks are worried about toxic loans

as much as i am disappointed with Phil , he isn't 100% to blame ( he didn't appoint himself as RBA governor ) and the economy had issues even before the GFC
Click to expand...

I think the fact that other countries and their equivalent of RBA all did similar things should highlight that it definitely isn't all phil's fault. sure maybe some of it, but interest rates are only a small part of a larger picture.

talk about a red herring ...
 
i see NZ broke ranks this month , i don't follow NZ very closely , lately, to give an opinion if NZ made the correct decision ( for NZ )
 
Warr87 said:
His job is to get inflation where it needs to be. wider monetary policy should be the gov not RBA. the fact it will make it hard on ppl with mortgages shouldn't really be a factor in his decisions IMO. I also think it detracts from years of poor policy from the various govs and also from the banks. just seems like another passing the buck without addressing the issues on a systematic and substantial view.



I think the fact that other countries and their equivalent of RBA all did similar things should highlight that it definitely isn't all phil's fault. sure maybe some of it, but interest rates are only a small part of a larger picture.

talk about a red herring ...
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Absolutely agree you nailed it, the media got onto Lowe and hunted him down, sad but that is the downside of needing 24/7 news, as interest rates had to rise he became the media fall guy. Cheap news cover IMO.
The Governments are happy with that, because it takes the pressure off them for their failings, which is property tax concessions and insufficient spending on social housing.
Properties in Sydney, Melbourne, Canberra are a license to print money ponzi scheme, all it needs is an endless supply of tenants so that they can be negative geared, why kill the golden goose when you can sacrifice the servant (Lowe).:xyxthumbs
Got to keep the ponzi going, there is no money in politicians wages IMO.


Much easier to blame interest rates, I mean lets get serious, how long could they stay at zero? FFS. :roflmao:
So now we are going to get a newer, stronger, better RBA, that no doubt will be like an ICAC and all will be good. For who?
Can't wait to see the outcomes of this in 10 years time. :wheniwasaboy:
 
divs4ever said:
i see NZ broke ranks this month , i don't follow NZ very closely , lately, to give an opinion if NZ made the correct decision ( for NZ )
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I wonder if the NZ RBA is set up similar to Australia's RBA, if it is why are we so keen on changing sht?

Why all of a sudden do we have to have so many fundamental changes to everything, it seems as though we can't accept that people need to change as times change, now we seem to have to warp reality so that people don't have to adjust to change.

We seem to be just trying to present an alternative reality, which is weird, there are a lot of homeless, there are a lot of immigrants, why aren't the Govt's going hell for leather building social housing?
Why if the Govt's are decreeing a reduction in carbon emissions aren't they spending $ht loads on pumped hydro long duration storage?
No we will debate and argue on pub topics, while the main game slides under our feet, just like Luigi the magician "dance Maria" keep the audience distracted. :roflmao:
 
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sptrawler said:
Absolutely agree you nailed it, the media got onto Lowe and hunted him down, sad but that is the downside of needing 24/7 news, as interest rates had to rise he became the media fall guy. Cheap news cover IMO.
The Governments are happy with that, because it takes the pressure off them for their failings, which is property tax concessions and insufficient spending on social housing.
Properties in Sydney, Melbourne, Canberra are a license to print money ponzi scheme, all it needs is an endless supply of tenants so that they can be negative geared, why kill the golden goose when you can sacrifice the servant (Lowe).:xyxthumbs
Got to keep the ponzi going, there is no money in politicians wages IMO.


Much easier to blame interest rates, I mean lets get serious, how long could they stay at zero? FFS. :roflmao:
So now we are going to get a newer, stronger, better RBA, that no doubt will be like an ICAC and all will be good. For who?
Can't wait to see the outcomes of this in 10 years time. :wheniwasaboy:
Click to expand...
IMHO, the RBA made two mistakes.
1. The RBA made a big mistake in going under 2% cash rate.
It was only going to stimulate the housing market, but other areas of the GDP generation were already contracting.
Business productivity would not pick up any further whether the cash rate was two or zero.
During the shutdown for COVID, no business person would borrow money at any rate. If there is no business, you don' need a loan.

2. The RBA was too slow to start the increase in interest rates. They needed to start back in November 2021, around the time NZ started raising rates.
For these two mistakes, the board needs to be cleaned out.
Whether creating another bunch of overseers iwill improve things is a moot point.
Mick
 
sptrawler said:
I wonder if the NZ RBA is set up similar to Australia's RBA, if it is why are we so keen on changing sht?
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well Australia probably has a distressed ( maybe even toxic) loan problem , threatening extra nervousness in the banks ( and availability of credit )

has NZ a smaller mortgage-stress problem , because some Oz banks have a NZ arm , or is NZ less confident they can export their way out of a trade deficit

regarding the current situation in Australia , i still see mentions of reverse mortgages for people near the end of their working life by folks who probably aren't financial advisers ( and definitely not giving personal tailored advice )

now throwing Phil Lowe and RBA under the bus , makes me wonder if a Federal election is due ( either a nation-wide one or a crucial by-election ) because although Phil gets a LOT of the blame , he is trying not to implode the real estate mess ( both commercial and residential )
 
mullokintyre said:
IMHO, the RBA made two mistakes.
1. The RBA made a big mistake in going under 2% cash rate.
It was only going to stimulate the housing market, but other areas of the GDP generation were already contracting.
Business productivity would not pick up any further whether the cash rate was two or zero.
During the shutdown for COVID, no business person would borrow money at any rate. If there is no business, you don' need a loan.

2. The RBA was too slow to start the increase in interest rates. They needed to start back in November 2021, around the time NZ started raising rates.
For these two mistakes, the board needs to be cleaned out.
Whether creating another bunch of overseers iwill improve things is a moot point.
Mick
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That actually is spot on, it highlights the problem the RBA has IMO.
I spent my working life installing, commissioning and operating control systems and what you have stated above is the whole problem.

With a control system, you have various inputs and you are trying to control the output within design parameters.
The more devices you have to control the input, or the finer control you have on the output, the better the result with less swings.

It is a bit like having all the passengers in the car having an accelerator and the driver only having a brake, that's a bit like the RBA.

Industry, the Government, retail shops, wholesalers, importers, builders, shoppers, house buyers, building suppliers all have an input to the inflation, which is more pressure on the accelerator.
All the RBA has is a graph that shows the input flows and it has to make a decision on when and by how much to apply the brakes, it has to rely on a trend of the graph to minimise overshoot or undershoot, to stop violent swings.
If it got it wrong, it would have to increase the brakes, then release the brakes, then put them back on again.
The problem is the RBA only has interest rates at its disposal to control all the inputs from all the other sources, to say they have stuffed up IMO is not understanding the enormity of the issues that they are trying to control.
The Governments have far better control mechanisms than the RBA, an investigation into Government fiscal settings would be far more beneficial than a review into the RBA IMO, but that ain't going to happen. ?

Why not give the RBA some more input to Government policy, that will affect inflation? WOW that would be novel. :roflmao:
I mean the RBA is made up of intellectuals, but not in the same way the Government is. :whistling:
Jeez I ran a moderately successful workshop lotto syndicate and got voted into parliament, what the hell would the RBA know? ?
 
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sptrawler said:
The Governments have far better control mechanisms than the RBA, an investigation into Government fiscal settings would be far more beneficial than a review into the RBA IMO, but that ain't going to happen
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We have a rather odd situation where the people given the most power and control in society, politicians, have absolutely zero required qualifications in order to be doing the job.

There's a greater mandatory training requirement to legally replace a tap washer or light switch than there is to be running the country.

How many of our politicians have any qualifications relevant to the things they're making decisions about? How many would be able to obtain employment making similar decisions in any business? :2twocents
 
Smurf1976 said:
We have a rather odd situation where the people given the most power and control in society, politicians, have absolutely zero required qualifications in order to be doing the job.

There's a greater mandatory training requirement to legally replace a tap washer or light switch than there is to be running the country.

How many of our politicians have any qualifications relevant to the things they're making decisions about? How many would be able to obtain employment making similar decisions in any business? :2twocents
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Yet they have the power to undermine the most technically competent authority, we live in a strange world where the competence is based on a vote rather than ability or technical qualifications.
Well I'm sure we will be around, to see the result of some amazing leaps of faith, become massive falls into the abys. ?
The media has become the carrier of the knowledge, regardless of whether it is right or wrong.:xyxthumbs
 
sptrawler said:
Absolutely agree you nailed it, the media got onto Lowe and hunted him down, sad but that is the downside of needing 24/7 news, as interest rates had to rise he became the media fall guy. Cheap news cover IMO.
The Governments are happy with that, because it takes the pressure off them for their failings, which is property tax concessions and insufficient spending on social housing.
Properties in Sydney, Melbourne, Canberra are a license to print money ponzi scheme, all it needs is an endless supply of tenants so that they can be negative geared, why kill the golden goose when you can sacrifice the servant (Lowe).:xyxthumbs
Got to keep the ponzi going, there is no money in politicians wages IMO.


Much easier to blame interest rates, I mean lets get serious, how long could they stay at zero? FFS. :roflmao:
So now we are going to get a newer, stronger, better RBA, that no doubt will be like an ICAC and all will be good. For who?
Can't wait to see the outcomes of this in 10 years time. :wheniwasaboy:
Click to expand...
Hmm sptrawler in 10 years time I couldn't give a rats.
 
So after all the talk about setting guidelines, having a constructive framework etc etc, Chalmers bypasses all the "rigourous" recruitment processes he championed and has just appointed two new members to replace those retiring from the board.
From The Guardian
1682031427029.png
the Guardian declined to mention that both of the candidates chosen started their careers at the ACTU in workplace health and safety.
At least the board meetings will be safe.
Mick
 
frugal.rock said:
Please use the new & correct terminology. With thanks in advance.

"At least the toolbox talks will be safe"
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are you sure ??

i have seen dangerous activities involving tool-boxes , lifting , faulty assumptions on weight, inappropriate opening techniques , sharp edges and corners , lackadaisical care when exploring the contents ( often in dimly-lit scenarios ) , and unsafe closing techniques ( causing injury ) .... all accomplished by various health and safety officers

which wasn't a bad thing , as i was asking for more comprehensive first aid kits on at least three of those sites , mainly because the co-workers complaining about my self-applied first-aid improvisations ( paper-towel looted from the rest-room , methylated spirits , normally used for cleaning the whiteboards , and sticky tape liberated from the office ) and the 40 metre blood-trail to assemble the needed items .. which was still 10 metres shorter than the trip to the under-stocked first-aid kit ( which was locked and chained in a cabinet on one site )

BTW i never did find the first-aid kit at the ship-yard ( but i only worked there for six months )

health and safety lectures my second only favourite waste of time ( right behind site inductions )

Bob Newhart - King Kong at the Empire State

invidious.esmailelbob.xyz invidious.esmailelbob.xyz
 
mullokintyre said:
So after all the talk about setting guidelines, having a constructive framework etc etc, Chalmers bypasses all the "rigourous" recruitment processes he championed and has just appointed two new members to replace those retiring from the board.
From The Guardian
View attachment 156046
the Guardian declined to mention that both of the candidates chosen started their careers at the ACTU in workplace health and safety.
At least the board meetings will be safe.
Mick
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Hmm reeks of jobs for the boys and girls somewhat.
 
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