Silver Lining Amid the Doom and Gloom

Despite all the doom and gloom I have been on record of saying that things will start turning around by the end of the year. This would also then see interest rates heading down.

The NAB seems to confirm this thought process:

http://www.news.com.au/business/story/0,23636,23200745-462,00.html

This thing we are experiencing is just short blip on the radar...

My question is, what would cause the RBA to cut rates, when it so clearly states that it'll continue to raise rates unless people cut back on consumption? The only reason it would cut rates is if inflation was no longer a problem and the economy was deteriorating. That might be a silver lining for us as investors, of course.
Alex

When the housing start numbers, job numbers, and GDP numbers shoot down from April 2008....thats when.

Agree, there is a silver lining for us investors....but we do not want a recession or depression either.....if we don't have jobs there ain't gonna be any investors around....unless they are independently wealthy like you Alex.

Just kidding Alex....just the leftie in me...which comes out occaisionally to balance the burgeoius capitalist side of me!

Sash

alexlee said:

My question is, what would cause the RBA to cut rates, when it so clearly states that it'll continue to raise rates unless people cut back on consumption? The only reason it would cut rates is if inflation was no longer a problem and the economy was deteriorating. That might be a silver lining for us as investors, of course.
Alex

Click to expand...

Hehe, I like this part at the start of the article:

...but a fall in interest rates next year is likely, according to an economist.

Click to expand...

And just how many economists are out there?!