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It's the RBA they really love this game!

Discussion in 'Finance & Banking' started by ChrisandK8, 1st Aug, 2008.

  1. ChrisandK8

    ChrisandK8 Member

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    Bamaga, Qld
    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?
     
  2. crc_error

    crc_error The Rule of 72

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

    welcome australia..
     
  3. ChrisandK8

    ChrisandK8 Member

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    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...
     
  4. DotnetKris

    DotnetKris Member

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    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..
     
  5. ChrisandK8

    ChrisandK8 Member

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    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!
     
  6. crc_error

    crc_error The Rule of 72

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

    price = supply and demand... have a think about it.
     
  7. ChrisandK8

    ChrisandK8 Member

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

    bigbuddha Well-Known Member

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    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.
     
  9. Billv

    Billv Getting there

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    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
     
  10. Jacque

    Jacque Team InvestEd

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    I'm tipping the first RBA fall for October this year but the banks may have other ideas :rolleyes:
     
  11. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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    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