'The government' and 'politicians' are two different things.
Interest Rates to Fall Yet Again. Good News For Property Owners.
- Thread starter Lord Shanghai
- Start date
'The government' and 'politicians' are two different things.
Interesting interpretation.....
C'mon folks. It does not matter who is right or who is wrong. Let's bask in the warmth of lower rates and make the most of it while it lasts.
Actually it does and its a position that irks me somewhat. It means we accept a dumbed down version of reality for the sake of less stress and anxiety. The govt and big business continuously broadcast the message "We have things under control, nothing to worry about, trust us" and so on.
V8 and others echo and reinforce that message which with little effort is exposed as patently incorrect.
If you want to or have to interact with the financial system in any way understanding what you're up against at least goes someway to improving your outcomes.
Interpretation? Serious question: how much real, hands on experience do you have dealing with the federal government?
And what pray tell does that have to do with the price of fish. If you think government and politicians are two different things then provide an explanation and context so we all might understand where your coming from because in the context of this discussion I see no relevance at all.
Feel free to enlighten us...
I think you're getting a little closer to understanding how the financial systems work. It is irksome, but unfortunately they have the control & make up the rules, so there is little most of us can do about it, so the best outcome for us is to deal with it, rather than whinge about it.
If you understand their biases & the outcomes they want, then it's easy to balance what they say what is likely to actually happen.
Smarter & more powerful people than us have better information & can move into & out of markets well before the average investor (who takes as gospel whatever journalists tell him). When the Interest Rate futures and Gold futures start to move, it means that the guys who really know what is happening have new information.
Bottom line is
- Ignore the newspapers
- listen to whatever the institutions (economists, RBA, APRA, IMF, G20, politicians & many others) say, while bearing in mind their biases & intended audience & then discount most of it depending on their biases
- but really listen to the markets
Trends right now - IRs are flat, gold is falling, housing is up, stocks are up, bonds are flattish - none of this adds up to D&G
How ? They set the rules, we can choose to play or not.
I'll ignore the insulting language, given our previous discussion about playing the man.
Public servants have the job of implementing government services and programs on the ground. There are many, many of these and they vary considerably in terms of scope, size, reach and funding. Many programs are highly detailed, and may have clients (individuals or businesses) that number only in the tens or hundreds. Many (most?)of these programs form the business of government, and very little is known about them by the general public, even though most of the information related to them is publicly available if you know where to look.
Politicians are about getting elected, setting high level program policy, getting elected, being seen to support Australia's interests, getting elected, and getting elected. Individual portfolio ministers hold nominal responsibility for various departments, but the day to day development, delivery and administration of most programs are left the to the departments to manage.
It's a popular joke that public servants are lazy and useless. And yes, quite a few of them are. But quite a few also aren't. They have to solve complex problems under quite different constraints when compared with private businesses. It is in their interest to engage with their program clients (individuals or businesses) to achieve the goals of the programs, because dealing with non-compliance is a lot more difficult and resource-intensive.
Whether you see the difference, or its relevance, is immaterial. Government is a complex beast, and politicians don't run it. The whole point of government is not to be political, but to implement the programs as directed by the politicians. Most of the time, the politicians will have limited real input into, or day to day control of, the programs that government manages.
In the interests of transparency, I am not and have never been a public servant. I am a specialist consultant who works with a wide range of departments, and I've seen quite a wide range of what government really does.
There's a lot more going on in government than SMH, news.com or macrobusiness would have you believe.
It's statements like these that kill your credibility.
They don't run it but they direct the programs... got it.
First they came for the Socialists, and I did not speak out?
Because I was not a Socialist.
Then they came for the Trade Unionists, and I did not speak out?
Because I was not a Trade Unionist.
Then they came for the Jews, and I did not speak out?
Because I was not a Jew.
Then they came for me?and there was no one left to speak for me.
Martin Niem?ller (1892?1984)
Because I was not a Socialist.
Then they came for the Trade Unionists, and I did not speak out?
Because I was not a Trade Unionist.
Then they came for the Jews, and I did not speak out?
Because I was not a Jew.
Then they came for me?and there was no one left to speak for me.
Martin Niem?ller (1892?1984)
I abhor the do nothing turn the other cheek element of society. Those happy to hold their hand out for personal benefit at the expense of the rest of society.
Oh geez, long bow that is....Rather than tilt at windmills on an Internet forum where nobody cares, Keith is just getting on with it.
No, it's resonses like this that destroy your credibility.
Do you understand the difference between directing something and running it? The politicians set high level goals, the government has to implement the systems, processes and measures to achieve the goals that are set. The politicians do the WHAT, the government does the HOW. Two completely different things.
I think now you are either trolling, or too stupid to admit you don't understand something. You accuse me of playing the man and not the ball, and then come out with this rubbish. I won't be responding to you further. Enjoy your ignorance.
Spot on! A rate cut is the right medicine for Australia right now.
....perhaps not for property loans but for the rest of the economy, I'd agree.
This has APRA worried and rumors are that PI will get slugged with higher IRs on loans as a way of curbing what they see as the current exuberance in the market.
http://www.mortgagebusiness.com.au/...usiness_Newsletter19_11_2014&utm_medium=email
If implemented, the only people this will hurt is Aussie investors. Foreign investors will get an even bigger slice of the market, bringing in cheap money from overseas. One of my BAs has a friend who has access to 1% Canadian money and the difference it makes in his ability to purchase is unbelievable.
And so the exuberance simply transfers to overseas investors and the locals cop the rap ?
Yeah right, good outcome that.
The market will take care of itself.
if 50% of the market is investors then yields will surely drop, vacancies will rise and the exuberance will stop.
Rinse repeat. It's been done a thousand times before.
Personally, we have taken advantage of this rise to sell a couple IP's, strengthen the balance sheet and god forbid, live a little !
One sold to FHO the other to an investor who will eventually live there one day.
Our cashflow is the same with a nice chunk sitting in offset.
Yeah right, good outcome that.
The market will take care of itself.
if 50% of the market is investors then yields will surely drop, vacancies will rise and the exuberance will stop.
Rinse repeat. It's been done a thousand times before.
Personally, we have taken advantage of this rise to sell a couple IP's, strengthen the balance sheet and god forbid, live a little !
One sold to FHO the other to an investor who will eventually live there one day.
Our cashflow is the same with a nice chunk sitting in offset.
So if I direct something I'm not running it. I'll tell the wife that.
A friend at APRA told me they are indeed concerned, they feel people are overcommitting and that once the IRs rise people will get themselves in to trouble.
Change the word running for implementing, does that help? Yes, the politician nominally bears the responsibility if their oversight of implementation is lacking (think the insulation disaster KRudd and his idiot friends created), but at the end of the day the implementers will need to fix the flaws long after that politician is retired on an excessive pension
V7 threw in a strange post splitting hairs over definitions. For what purpose I have no idea. Personally I couldn't give a flying flock of pigs what he calls government, politicians etc.
