It's the RBA they really love this game!

I see this morning some talk about the RBA cutting interest rates due to the lowest slump in retail figures since records began some 30 years ago...

I can't really see that happening for sometime. I think they will keep the squeeze on us for a while so that we feel what it's like to live tightly since we have had it so good for the last 5 years or so.

They may let off around the new year?

Any thoughts?

 

there is a saying.... kevin07... recession08... depression09

welcome australia..

 

That's a little pessimistic...

There are always opportunities regardless of what the economic climate is like.

I only wish the government gave more help to investors such as low interest loans or other perks to help solve the housing crisis...

 

The government should in no way be participating in the market by supplying investors with 'low interest' loans or otherwise.

Can anyone else think of a worse way to increase the money supply, and inflate asset prices than that?

Low interest rates and easy access to funds is what caused the asset price bubble in the first place..

 

I think that combined with people spending $1.10 for every $1 they earn would also add to the problem.

It would be similar to the government idea already that they would give incentives for people to create housing that would rent 20% below market value.

When you suffocate the economy to bring everything back to line, you have to do CPR to bring it back to life. If you add some fairly strict criteria to who could borrow money from them, then that would help not to create another bubble.

After all, they give incentives for people to have rentals so the government doesn't have to worry about them!

 

how is giving the people more money going to solve the housing crisis?

price = supply and demand... have a think about it.

 

Access to money is not the issue...it's what the uneducated do with it is the problem...

 

Unfortunately that would probably be a much higher proportion to those who do know what to do with it. Basically that's what and will happen again in the states.

 

I think they will have to act soon and if they don't drop them
next week they will probably have to move next month.

If petrol prices stay at current levels they will probably go for a 0.5% drop
and hopefully the banks will pass half of that to their customers.

If petrol prices continue to fall then the RBA could even leave rates as they are now.

IMHO

 

I'm tipping the first RBA fall for October this year but the banks may have other ideas

 

Bets are on for a 100% chance of a drop of 0.25% by October. Not that it really means anything - the banks won't drop rates. Meh, whatever. I'm well on track, so I'm not fussed at all.

Mark