what does everyone think of the news out today that interest rates could be as low as 3% by march 2009
I think that the writing has been on the wall for a while, and the debt based economy we have been operating for some time is now becoming clearer to more people.
It should be a great help for those in property and finance industries, and I sincerely hope it has the desired effect of more jobs and housing market activity.
Bring it on.
Expect inflation to go through the roof 10%+
History shows that artificial manipulation of interest rates in these kind of circumstances may slightly improve the symptoms but results in making the illness worse over the long term, If anything, Interest rates should be going up, Sure it would make the market worse and prices would drop substantially but within a year or two we would have cleaned out the system and we could start a fresh, I would rather that then huge government interventions and manipulations continuing to make the problem worse, I don't want a 10 year recession like japan
The people in the drivers seat either 1: Know how the market works and are doing the opposite to what they should be doing or 2: They don't have a clue, Either way they should be booted out of there positions.
I Hope they go down alot and stay there for a few years then easier to pay off my PPOR
Realistically do you think rates will be down below 6% by Oct 2009?
NWO will bankrupt all that don't listen
Whilst there is an inverse relationship between intereste rates and inflation there is a difference when you're in or nearing a recession. Demand for goods (includes houses) falls so hardly the price of anthing will increase. People become wary in uncertain times so they'll put whatever excesses they have into important things like reducing debt. This bubble bursting we're starting to have should have started a long time ago (now 7.5 times your income to buy a property….used to be 2,5). Its a catch 22….if people put there money into retail it boost the economy (and fuels inflation) but in these times debt is people's biggest worry so they want to reduce it. The writing was on the wall for so long about rising debt and whilst we had a system better regulated in Australia than the US opportunities for people for borrowing beyond their means was being made more available as time passed. Strange to say this but borrowing will be made more difficult now which is a good thing….but it's a tragedy that it took a world financial crisis for people to understand what debt means.
CarpeIf you follow a cake recipe you usually end up getting a cake
What im worried about is the fact that we have been following a more hardcore recipe for the past few decades then the one we did before the great depression
I am absolutely convinced now that we will go through the D word.
inflation going up… any opinions on gold in line with that?
lukentel wrote:inflation going up… any opinions on gold in line with that?Will be very surprised if gold does not double within a year, Gold should be a few thousand dollars and ounce not 800 or whatever.
I have read so much into this topic, I think we will see gold 5000 before the next decade.
hmm this is interesting: http://www.youtube.com/watch?v=z6NfXk7Bvc8
This is a good link to save to favourites. Gives you an idea where the futures market sees interest rates in the coming months (and is updated daily)
http://www.asx.com.au/data/trt/ib_expectation_curve_graph.pdf
Its saying RBA rates around 3.195% by April 2009.
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