Economy heading to? risks of investment?

[ABC01]

Recently RBA suprisingly reduced official interest rate. At the same time the government introduced a rule to prevent people prematurally withdrawing their term deposit. Some banks even have introduced their own rules, such as automatically roll over your matured term deposit if the term deposit is over 100k, even you have told them you don't want to rollover.

I seems to me it's an ominous sign of our economy. Will the housing market bubble burst in near future?

 

[knightm]

Recently RBA suprisingly reduced official interest rate. At the same time the government introduced a rule to prevent people prematurally withdrawing their term deposit. Some banks even have introduced their own rules, such as automatically roll over your matured term deposit if the term deposit is over 100k, even you have told them you don't want to rollover.

I seems to me it's an ominous sign of our economy. Will the housing market bubble burst in near future?

1 Welcome to the forum!
2 It wasn't a surprise reduction to everyone
3 Governments always have, and always will "introduce rules" that is their job. In my view it is important to remain aware of possible policy shifts but I don't believe we should make investing decisions based on laws that haven't been introduced.
4 Banks do the same tinkering as governments (see above)
5 Falling interest rates in the current environment to cause a bubble burst? What exactly do you think makes this most likely to occur?

 

[new2this]

The rate cut was far from surprising, pretty sure it has been predicted for quite a few months tto occur when it did? Any links to back up the rest of your statements

 

[ABC01]

"5 Falling interest rates in the current environment to cause a bubble burst?"

Probably falling interest rates is an attempt to prevent a bubble burst rather than causing it.

Australian Financial Review used the word "surprise" in the title of its article: "RBA surprises with rate cut" http://www.afr.com/videos/markets/rba-surprises-with-rate-cut-prn3c0czozcjtpt0v5bmgstvsz0j03t3.html

ABC news also used the word in its new report "Reserve Bank makes surprise interest rate cut to boost economy".

 

[strongy1986]

"5 Falling interest rates in the current environment to cause a bubble burst?"

Probably falling interest rates is an attempt to prevent a bubble burst rather than causing it.

Australian Financial Review used the word "surprise" in the title of its article: "RBA surprises with rate cut" http://www.afr.com/videos/markets/rba-surprises-with-rate-cut-prn3c0czozcjtpt0v5bmgstvsz0j03t3.html

ABC news also used the word in its new report "Reserve Bank makes surprise interest rate cut to boost economy".

I would rather die on my feet than live on my knees

Peter garret , the Power and the passion

What your saying does make some sense but your better off being part of the herd
Just give it a crack, if our country go's to the shitter then you will lose money along with 99% of the population

If it doesn't and you continue to be a pessimist.... Well you will just be another one of those people who wait around forever for the crash and never get anywhere

 

[Jenko]

What bubble could burst? Sydney, mellbone, Perth & Darwin.. Nothing else has had any growth to burst.. Maybe a correction? I think if things get tougher people stop investing and building rents will rise..

 

[jpcashflow]

Hi

Hi,

Interesting topic: "Good or "Bad" economy will effect every one differently.
Some people thrive in a bad economy and some people struggle in a good economy.

Also different suburbs will react different to all the changes.
I have been encouraging my clients to review there loans and investment portfolio.

 

[ABC01]

Hi, Johann
I agree with you. It's all about the timing of the investment, including stock market and property market.

 

[HomePage]

At the same time the government introduced a rule to prevent people prematurally withdrawing their term deposit.

Reference link please.

 

[Biz]

I hope you guys realise this is nothing more than a sophisticated manual spam effort.