Well I've got no savings but plenty of debt to quite happily erode so ...bring it on !!
LL
As long as we can lock our interest rates because they will be going up for sure...
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Well I've got no savings but plenty of debt to quite happily erode so ...bring it on !!
LL
Not me, I do not forecast with any statistics, sorry no crystal ball as such to lend. I observed and interpreted what was happening and discussed.
Attached is one article in March 2008 reporting the big drop in consumer sentiment (business sentiments index was making multi year low also), implication to unemployment and potential interest drop. However, at the time the monetary management was still biased toward containing higher inflation, hence months yet before RBA found courage including re-examining its assumptions (eg IR rise contribution to CPI) to reverse course and provide IR drop in September.
http://news.sbs.com.au/worldnewsaustralia/consumer_confidence_hits_record_low_542623
As to commodity drop, it was going to drop, question then was how much after urgency for infrastructure was lessened post Beijing Olympics in combination with China's loss of exports to US courtesy of sub prime mess.
Cheers
As long as we can lock our interest rates because they will be going up for sure...
Hi BV,
And when do you think will be time to lock interest rates? What will you be looking out for to make decision to lock interest rate?
The rise of the 90 day bank bill rate.
My bet is at least a 1% reduction in December. They want people to maintain their normal spending habits for the Christmas/New Year period. Also the RBA don't meet in January so they are making a decision for a 2 month period. Maybe a 1.5% cut is not out of the question like the Bank Of England. The Aus government were talking about a second stimulus package this morning. What greater stimulus could you get than a 1.5% interest rate cut.
All I want for Christmas is a 6% fixed rate for 10 years. Lock it in Eddie!!
Way back in March there was heaps of information that clearly showed we were headed into a soft depression. The RBA crowd exist in another stratisphere. I think they must snif ether in Canberra they are so high up
And when do you think will be time to lock interest rates? What will you be looking out for to make decision to lock interest rate?
It's alright for them to be working up there, secure with stable public service pay and conditions, but they should not forget the impact of their machination on the laymen; workers and small business. It irks me to hear/read of them referring to historical 'low' foreclosure rate in Western Sydney when there are families out there under stress and breaking up because of over-tightening of credit.
Yep I reckon we are in for some high inflation in the near future. It will erode the debt and savings of many australian families and business.
OK,Agree totally Francesco ! And what is even worse is the spineless pollies who conveniently and airily ( read Rudd ) adopt a total hands-off, not our fault blame the RBA, couldn't give-a-hoot attitude. Their chickens will most assuredly come home to roost.
LL
All I want for Christmas is a 6% fixed rate for 10 years. Lock it in Eddie!!
Because they know they're going to go back up again...we are a long way off!
http://www.commbank.com.au/personal/home-loans/complete-home/rates-fees/default.aspx
why are fixed rates so expensive anyway since the banks know rates are coming down?
Just looking for clarity around how you can perceive the current government's actions to be hands off and blame the RBA.
we are a long way off!
http://www.commbank.com.au/personal/home-loans/complete-home/rates-fees/default.aspx
why are fixed rates so expensive anyway since the banks know rates are coming down?
Hi BV,
And when do you think will be time to lock interest rates? What will you be looking out for to make decision to lock interest rate?
Cheers
George
I've read in another thread that Westpac as of today is offering a 3 year fixed loan @ 4.99%.