http://www.abc.net.au/news/2014-10-...ets-too-stable-warns-of-violent-moves/5811712
A rising star at the RBA has predicted a major and violent downward movement for the ASX and international markets.
Before we overreact, it pays to look back. For those with long memories:
1. The RBA has gotten it wrong many times before. Does anyone remember them selling our gold reserves copy-cat fashion for around 20% of gold's current worth? There was absolutely no need to sell the nation's gold reserves as they (like other central banks) did.
2. The RBA has a long history of jawboning. They say something and mean the exact opposite. More worryingly, they frequently bully journalists into towing a particular line. Those brave journalists who dissent are often excluded from future RBA briefings.
3. The events of 1987 are relevant. When a violent stockmarket selloff occurs, there is a flight to reinvest money in property, which is considered safer. And that, for us forumites, is a good thing.
We are in for some interesting times. Hold on to your hat - the next few months will be fascinating.
A rising star at the RBA has predicted a major and violent downward movement for the ASX and international markets.
Before we overreact, it pays to look back. For those with long memories:
1. The RBA has gotten it wrong many times before. Does anyone remember them selling our gold reserves copy-cat fashion for around 20% of gold's current worth? There was absolutely no need to sell the nation's gold reserves as they (like other central banks) did.
2. The RBA has a long history of jawboning. They say something and mean the exact opposite. More worryingly, they frequently bully journalists into towing a particular line. Those brave journalists who dissent are often excluded from future RBA briefings.
3. The events of 1987 are relevant. When a violent stockmarket selloff occurs, there is a flight to reinvest money in property, which is considered safer. And that, for us forumites, is a good thing.
We are in for some interesting times. Hold on to your hat - the next few months will be fascinating.