Are Australians better off with lower Interest Rates?

E

errol43

New Member
Silver Stacker
On the Max Keiser 377, he showed a report from Australia that when Interest Rates dropped, Insurance rates rose sharply to offset lower returns from investment that Insurance Companies make.

He went on to explain that in the UK, citizens with borrowings saved plenty of $$ when interest rates dropped but other sections paid more than double the savings by increased charges,,EG Insurance Costs and Retired Oldies getting less returns on pension fund investments!

Interesting to learn about the Hollywood Accounting system.

Do we really benefit from low interest rates.

What do you think? Anyone noticed any spikes in Insurance costs?

Regards Errol 43
 
errol43 said:
What do you think? Anyone noticed any spikes in Insurance costs?
Click to expand...

Yep. NSW CTP green slips becoming a joke this year at around $400.
Home insurance just as laughable.... but they blamed that on the QLD floods.?
 
Last year my NRMA greenslip renewal arrived and it was $820.00, up from $430.00 the year before. I didn't even bother calling them to ask why, I simply binned it and called AAMI and they quoted $440.00. Don't know what game the NRMA was playing but since they were floated on the stock market they have gone from being one of the country's finest organisations to just another shonky insurance company.
 
Negative real interest rates are bad, bad news. Artifical interest rates (not set by the market) are bad news too.

Low interest rates are only good when they are not artificially low interest rates.

So collectively we do not benefit.
 
Jonesy said:
Last year my NRMA greenslip renewal arrived and it was $820.00, up from $430.00 the year before. I didn't even bother calling them to ask why, I simply binned it and called AAMI and they quoted $440.00. Don't know what game the NRMA was playing but since they were floated on the stock market they have gone from being one of the country's finest organisations to just another shonky insurance company.
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you nailed it jonsey, the shareholders are more important than a pesky driver, better off buying shares than insurance in banks and insurance firms
 
Low interest rates are just as bad for Australians as high interest rates are under this price fixing scheme. The ebbe and flow of growth/inflation - recession/inflation will always see us in a never ending spiral of weaker money in comparison to living standards/costs.

The sooner we get sound money with market rates the better we all will be.
 
better with low... i have a lot of debt... and the lower it is, the more fiat to convert to pm.

then inflation... working to get my debt seems to be manageable after some time.

so all good here
 
Mr Medved said:
Negative real interest rates are bad, bad news. Artifical interest rates (not set by the market) are bad news too.

Low interest rates are only good when they are not artificially low interest rates.

So collectively we do not benefit.
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Succinct reply, totally agree :)
 
long88 said:
better with low... i have a lot of debt... and the lower it is, the more fiat to convert to pm.

then inflation... working to get my debt seems to be manageable after some time.

so all good here
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Goes to show the difference between thinking styles.

Some people think of "what does it mean for us?"

And others think of "what does it mean for me?"

There are so many 'me's' around lately, no wonder our political system is completely screwed.
 
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