Posted to The Age (19/5/2015) on 19/5/2015 at 1:22 PM
Commenting on "RBA minutes confirm scope for further interest rate cuts"
http://www.theage.com.au/business/the-economy/rba-minutes-confirm-scope-for-further-interest-rate-cuts-20150519-gh4s93.html
Falling interest rate will drive the economy to the grave, and along with it, the many self funded retirees.
Sitting on a property that increases in value each day is a mirage, because that is only virtual money. I still need to live in a house, preferably the current one I own and live in. To exchange for a similar one, I lose at least 8% of the value of the property, made up of about 3% in selling expenses including agent's commission, and 5% in stamp duty for the purchased home. It is unlikely to find one that is close to my area, or "comfort zone".
How will the banks raise money from local depositors if there is no interests to be earned? Without the deposits, how will the banks lend money to the borrowers to purchase properties? Money will be switched to different form of riskier investments, and we can see a sudden surge of rebirth of many scammers and snake oil con artists.
The ups and downs of currency caused by the announcement of increase or decrease of interest rate is a joke. Within a few hours, trend goes up and down, but then stabilises again in a day or two. In a short time, the world cannot change unless a war begins, production cannot go up and down unless some natural disasters strike; almost all the poor will remain poor and rich in status quo.
It is just speculation by the greedy. The sad thing is the educated economists start to believe the yo yo effect is as real as what a magic mirror tells them.
Commenting on "RBA minutes confirm scope for further interest rate cuts"
http://www.theage.com.au/business/the-economy/rba-minutes-confirm-scope-for-further-interest-rate-cuts-20150519-gh4s93.html
Falling interest rate will drive the economy to the grave, and along with it, the many self funded retirees.
Sitting on a property that increases in value each day is a mirage, because that is only virtual money. I still need to live in a house, preferably the current one I own and live in. To exchange for a similar one, I lose at least 8% of the value of the property, made up of about 3% in selling expenses including agent's commission, and 5% in stamp duty for the purchased home. It is unlikely to find one that is close to my area, or "comfort zone".
How will the banks raise money from local depositors if there is no interests to be earned? Without the deposits, how will the banks lend money to the borrowers to purchase properties? Money will be switched to different form of riskier investments, and we can see a sudden surge of rebirth of many scammers and snake oil con artists.
The ups and downs of currency caused by the announcement of increase or decrease of interest rate is a joke. Within a few hours, trend goes up and down, but then stabilises again in a day or two. In a short time, the world cannot change unless a war begins, production cannot go up and down unless some natural disasters strike; almost all the poor will remain poor and rich in status quo.
It is just speculation by the greedy. The sad thing is the educated economists start to believe the yo yo effect is as real as what a magic mirror tells them.