100 basis points RBA cut

If interest rate cuts are such a good thing, why not just cut it down to 0% and we can enjoy forever ASSET GROWTH BOOM. Everything from shares, properties, arts, foods, everything! Woohoooooo! Everyone is going to be rich!!! :rolleyes:

Hi,

I agree, probably half or maybe a bit more. The size of the cut was to allow everybody to win.

Not for me. I do not have any debt beside my HECS/PEL where interest rate is dependant on inflation, and interest rate cut usually mean more inflation.

Plus, I am a disciplined saver who do not really add "value" to the economy because I DO NOT SPEND recklessly. So thereforce, I am punished for being a stupid saver and not a spender and be in debt like everyone else.
 
A strong, decisive move by the RBA. The market seems to like it. Personally I think we'll see a short term bounce, then a resumption of the selling pressures. One thing to consider is that shorting is currently still banned. When it is reinstated, how many more rate cuts will we need?

Interesting to note that the US is at 1% interest rate and just threw $700B at the problem and that didn't do much (yet?) to stem the damage.
 
I'm loving the current exchange rate, my earnings have increased as I'm paid in US Dollars :D:D

As for rate drop, it's always been said the latest cut would not likely be passed on by banks and thats when they were thinking it'd be 0.5%

I'm loving it as well as the AUD has dropped significantly against the pound and the US dollar and I get paid in both currencies :D Plus I hold Aussie loans. Winning on both accounts now.
I would be stoked if the AUD collapsed like it did during the recession we had to have and the banana republic comments from Keating. Maybe Keating can give Rudd some advice in this regard and drive that Aussie dollar lower.
 
If interest rate cuts are such a good thing, why not just cut it down to 0% and we can enjoy forever ASSET GROWTH BOOM. Everything from shares, properties, arts, foods, everything! Woohoooooo! Everyone is going to be rich!!! :rolleyes:

Off you go to the bank to get a loan then....
 
A hay seed with *****les

I have said previously in my posts that at the bottom of the soft depression 2010-2012 we will see interest rates in Australia at 2%, the Aussie dollar at 38 cents and property values halved from the 2007 peak.
 
This is shock and awe from the RBA.

They are trying to blow the doors off the market to inject some enthusiasm into what otherwise appears to be a bottomless swamp. We are very lucky that the RBA has brought rates up high enough to be able to do big drops like this.

Lets keep in mind that 7% is restrictive monetary policy and now is not the time for restrictive monetary policy. 6% is still on the high side of medium - theres plenty left in the tank.
 
We may see a rally in house sales till Christmas.........the yippee kai yays, however may be short lived. I'm still sitting on my hands, albeit satisfied for some softening of rates for my own personal situation of having two fixed rate loans falling due in July/Aug next year :)

How many more damaged carriages are still to come from the US train wreck is unknown as will be the fatality count. In such uncharted times, I wonder if this was too sudden a drop :confused: and will there be an over zealous bull run on property sales volumes with further correction to come?
 
I have said previously in my posts that at the bottom of the soft depression 2010-2012 we will see interest rates in Australia at 2%, the Aussie dollar at 38 cents and property values halved from the 2007 peak.

Dude if IRs drop to 2% I could retire. So could many many more people on this forum.
 
In 2010

Given the amount of liquidity in the world markets primed by the central banks, currently being hoarded by banks, the inevitability of interest rates being reduced over the next 2 years, are we heading back into another scenario where (say for example in 2010) there will be cheap and plentiful funds looking for a home?
 
I have said previously in my posts that at the bottom of the soft depression 2010-2012 we will see interest rates in Australia at 2%, the Aussie dollar at 38 cents and property values halved from the 2007 peak.

But the banks will only be lending to ppl who don't need to borrow :)

Lo Docs will probably have fused back into full docs and you'll only get 65%LVR, and revals will be done by convervative old Marxist valuers who don't want to see anyone get ahead by tapping that equity.

But the cash flow should be delirious, as renters are forced to jam in tighter together cos the govt didn't cut immigration in line with provision of new infrastructure and dwelling construction.

Great time for the rich to get richer.
 
Dude if IRs drop to 2% I could retire. So could many many more people on this forum.


You will only be able to retire if your debt has retired first:p Think of the asset bubble in the 1990's in Japan its still ongoing and they had interest rates at the bottom close to 0%
 
But the banks will only be lending to ppl who don't need to borrow :)

Lo Docs will probably have fused back into full docs and you'll only get 65%LVR, and revals will be done by convervative old Marxist valuers who don't want to see anyone get ahead by tapping that equity.

But the cash flow should be delirious, as renters are forced to jam in tighter together cos the govt didn't cut immigration in line with provision of new infrastructure and dwelling construction.

Great time for the rich to get richer.

Yep Winston its Pareto's principle also known as the 80/20 rule. 20% of Sommersoft investors will make money in the next 10 years and 4% of those will make serious hay. If Dazz can survive with his debt of 20 million he will probably be in the 20% of that 4%:p
 
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