How low can you go???? :| http://www.smartcompany.com.au/prop...y_18_December_201218_12_2012&utm_medium=email
Note they didn't say that THEY would cut by a further 1%. Depending on the international situation we my see the RBA cutting 100b.p. but with the mortgage rate increase.
Notice how the bias media never runs the anti-saver spin on these articles? When savers get slammed it's "Cash rate set to drop to 2% in 2013: ANZ predicts" When debtors get bailed out, it's "Rate cut plea to help battlers?" http://au.news.yahoo.com/thewest/a/-/national/13149283/rate-cut-plea-to-help-battlers/ If you're an idiot that swallowed too much debt to become another peon in the ponzi, you're a 'battler' If you're a saver or retiree relying on those rates, you're outright ignored. What an utter joke this country has become...
Anyone relying on rates on their term deposit to live off (ie retirees) or are trying to save their hard earned for a future purchase (ie fhbs)
rates are already negative, so why not? Switzerland and Denmark actually have negative nominal cash rates now.
Negative rates :lol: Just thinking of Auspm's reaction if the bank paid me to have a mortgage Kind Regards non recourse
Cash rate cuts of any more than 50 points will have little effect on the variable home loan rate I'm predicting. They will probably have little effect on anything below current rates also. Home owners won't see much more in their pockets as rates drop IMO. The one inflationary "benefit" may be that as rates start going below where we are now, the dollar may ease, making minng exports more attractive. That may arrest the scaling back of mining activities around the country.
The tax payer pays you to have one now, so it really doesn't matter if the banks decided to do the same on top. At the end of the day, the saver still loses, right? Absolutely hilarious that savers get slammed to the wall in this sick, debt driven train wreck economy - keep laughing, by all means.
Is anyone questioning the credibility of the source of the message? How about an agenda? What does the bank gain with this message? Low rates = 'people, quickly jump into more debt, it wil be okay, rates are headed lower!' And like bordsilver says, this does not imply a lowering of ANZ rates. And this message could simply be signalling - to the RBA, or to other banks. Or perhaps testing the waters for the RBA. The article doesn't say anything we don't already know. And a final finger point at the first place the article was released.
the only thing cutting rates further would do is to take a little of the excess heat out of the aussie dollar. people are much more cautious nowadays so there won't be much traction had from further rate cuts.
Something tells me that Australia won't handle a GFC 2 as well as we did the first time. It's funny how people don't understand the seriousness of this. All you will here from the sheeple is "interest rates are down, now is a good time to buy a house, you should by one" LOL sure. Since I now save what $15 a week, you want me to get in debt $300-400K? Smart plan :lol: I'll just wait until the whole thing crashes thanks.
Then you'll see the sob stories all over the media with pitiful over extended debtors with their hands out demanding the government save them and how it's for the greater good the gubmint taps into more of the saver's wealth to pay for it, holding a gun to the head of the population saying 'we have to bail them out or the whole thing goes down and you along with it'. Mob rule. This sounds rather familiar actually... [youtube]http://www.youtube.com/watch?v=Cr-cWGbGeFI[/youtube] [youtube]http://www.youtube.com/watch?v=rF-z-kbnJcs[/youtube]
We all make choices in life. If and when interest rates go back up to 17% you won't hear me moaning about it. The low interest rates are an opportunity to pay down debt. My crystal ball says the bottom will be about 2017. My goal is to use my business income sheltered in trusts to pay off the 30% over all gearing I now have. After 2017 I hope to be in a position to be my own bank. Kind Regards non recourse
I agree its a perfect opportunity to pay down any debt ....most wont they will think its great they have more spending money & spend it on crap
While I may disagree with NR on some things, i think NR is certainly eyes wide open on all sides of the ledger. By NR consolidating his foundations now and paying down his debt as fast as physically possible he will be perfectly positioned when the inflation gremlin has hit and the numpties in government are attempting to kill it. Regardless of what his asset base is worth when rates are in the high teens, his cash flow from his assets is very likely to be far on the positive side of the ledger. That sort of position in a falling market with high interest rates would be enviable. Wether he uses that positive cash flow to reinvest or simply throws it in the bank at high interest (or continues to buy PM to offset the inflation)he will be one of the few winners. The losers will be anyone that bought in the last few years or the next few and anyone paying more in interest every month than it would cost to rent a similar dwelling.
