RBA to cut another 1%?

That's what many commentators are saying. We might have a recession soon, thanks to the Mining Bust, Capex Cliff, Budget Black Hole and Failed Rebalancing.

Today's Capex statistics is a disappointiing tale of recessionary proportions. The RBA will have no choice but to cut rates further.

http://www.businessspectator.com.au/article/2015/5/28/australian-news/holes-economy-just-got-bigger
Personally for me; bring on every rate drop yer can!

But; what'll happen is we will see Tony and the Gang get the blame for everything and then get the boot next year as a result (short memories of Labor), Bill's band of Merry Men will get back in....

and then what?

:eek::eek::eek::eek::eek:

Then you'll really need to kiss the keester adios.
 
As long as the banks pass it all on!
I'm with the CBA and last month when the RBA cut the interest rate by 0.25% the CBA only cut my interest rate by 0.2%. With all this media hype about investors it wouldn't surprise me if the banks get greedy and decide not to pass on the full rate to investors.
 
The picture accompanying the article doesn't inspire me with confidence .

Only looks like he's just off his L Plates ....

Cliff
 
Pretty doom and gloom.


Whats the best way to weather the storm if a recession does happen? Are you pretty alright if you have a solid job?
 
Pretty doom and gloom.


Whats the best way to weather the storm if a recession does happen? Are you pretty alright if you have a solid job?
Yes. If you have a solid job you're right. Just don't brag or complain or ask your unemployed friend how her job search is going.
The eternal optimist, I don't think we'll see more cuts and if we do they won't be passed on. 77c today. Very good for tourism and other trade. Rates will hopefully stay low for a while but I think the surprises are over. This could be as bad as it gets / as low as she goes. IMO
 
The Bus Spec article paints a dim picture indeed.

Still, if investors can hold down their day jobs throughout the next couple of turbulent years, I can't see how us investors would be in a bad position? Rents might come down on properties held, too, but I'd imagine they'd come down in line with interest rate drops, the net effect not making a huge difference for our overall cash flow, no?
 
Only looks like he's just off his L Plates ....
Linkedin says he finished Uni in 2007. Have a skim of his other articles - he's one of the most -ve writers they have. I've never seen a balanced article from him - however he does appeal to the D&G demographic.

Maybe when he's experienced at least one complete cycles he may gain some respect.
 
FX market spooked . . . cause rates could go down further:



And Goldman Sachs is calling another cut

"Given the scale of the declines in this survey we reiterate our warnings that economic growth estimates remain skewed to the downside and the monetary easing cycle is unlikely to be complete. We continue to expect the RBA to ease interest rates again in 2015, most likely at the August meeting."
 
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