Dear MJK
To the RBA, X mas is perfect timing! They also want to stop rampant credit debt and X mas accounts for the majority of the total years debt o/a. Time to go hard.
I should add I am not negative rates long term and I do believe at this stage huge increase as forcast by BIS will not happen however that will depend of the fallout from these rises. The RBA is trying to bluff the "wood duck" investors (i.e. not real or long term).
Fall out is a gamble. Always hard to say if people will cut loses and sell. Do not discount the ego factor. In my experience many hold and sell years later for a little above they bought simply to say "we didnt loss money on the deal" Inflation, stamp duty and holding costs conveniently ignored.
Peter147
To the RBA, X mas is perfect timing! They also want to stop rampant credit debt and X mas accounts for the majority of the total years debt o/a. Time to go hard.
I should add I am not negative rates long term and I do believe at this stage huge increase as forcast by BIS will not happen however that will depend of the fallout from these rises. The RBA is trying to bluff the "wood duck" investors (i.e. not real or long term).
Fall out is a gamble. Always hard to say if people will cut loses and sell. Do not discount the ego factor. In my experience many hold and sell years later for a little above they bought simply to say "we didnt loss money on the deal" Inflation, stamp duty and holding costs conveniently ignored.
Peter147
