Yeah, like we are severely restricted on available land donch ya know, cause of ...um like....Koala's like um, yeah the Koala's need more trees like..... and so if, um we restrict the supply of available land for housing like... um....yeah (pause)....yeah the koala's....
Wouldn't they be paying back their mortgages with LESS valuable dollars than when the mortgage was started?
So when John Howard said "interest rates will always be lower under a Coalition government than under a Labor government", what he was really saying was that the Coalition would do more damage than Labor? Sorry, that's a cheap shot. Politicizing rates is something both sides do and it is stupid. Low rates? Great, we'll spin that in favor of property owners. High rates? Great, we'll spin that in favor of savers. Doesn't matter which side it's coming from, they'll both say the same thing as the other one if they were in the same position.
x2 Taking the credit for the way a group of nine people randomly choose to unnaturally muck about with one of the most fundamental prices in the economy is just frickin' stupid. Take credit for removing their existence.
If you're quick many of the REIT's are paying dividends above the margin loan rates. Time to leverage up and get free money - the price is irrelevant it's the dividends.
It's not stupid from their perspective. In fact, it's something that can help them get re-elected, so there is a real incentive for them to do so.
Nowhere did I say that low interest rates were bad. I said that having interest rates at historically low levels now is a sign of severe structural damage caused by Swan. And I am correct. Even Swan himself said that 3% indicates an emergency condition. He is now trying to cover his terror as his self made disaster sinks underneath him by babbling about mortgage savings while we now follow the USA and Japan to lower and lower rates due to a stalling economy.
No he didn't, he said the exact opposite. There is no "emergency interest rate level". Cutting rates by a full percentage point in one go is the action you take in an emergency but there's nothing special about 3%. If rates were cut from 8% to 7% in one go then that would also indicate an emergency. The size of the cut dictates is what defines an emergency, not the rate itself.
Isn't it funny how everyone is far more concerned about getting cheap credit than, say, cheap houses (or whatever)? And people wonder why inflation (and prices) are constantly rising... Still, I guess people don't get taught about credit in schools for a reason. Wouldn't want fiscally responsible citizens. That wouldn't suit the government's goals at all. And the government can all look after us financially anyway. Or so the story goes...
I'm surprised no one has commented on this reply. I agree, stocks are likely to go up on this news. I think we're going to see the same rise in stock values based on cheap money speculators as the US has seen. If hedge funds ands banks expect they can inflate the market greater then 2.75%, it will be a classic pump and dump.
And here's d*psh*t Michael Pascoe telling retirees that saving their money in term deposits is a 'dud' and they should be buying stocks with it for higher yields. http://www.theage.com.au/business/markets/penny-drops-savings-are-a-dud-20130508-2j6p1.html
