By: kiwi_glen111
12/11/2008
8:48 am Yahoo! Profile:
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(Aust)
INTEREST rates could be soon be halved with analysts tipping a 3.75 per cent rate by March so the Government can steer the country away from recession.
If the RBA were to cut rates by another 1.5 percentage points to 3.75 per cent by March, households with an average-sized mortgage could see close to $300 sliced off their monthly repayments...
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Nice one Australia,!! now where's ours.. [rubs hands]...
OK, i should have posted the last comment on the yeah right thread |
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By: kiwi_glen111
12/11/2008
9:09 am Yahoo! Profile:
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| woohoo, what a thread, should hit 3k posts i think :) |
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By: jo100378
12/11/2008
10:36 pm Yahoo! Profile:
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Heres something they might not be telling you:
NSW is virtually bankrupt. So the nsw state government is currently undertaking a cash grabbing excerise in raising state taxes, raising the cost of public transport, raising the tolls for going over the harbour bridge. So in an already redicuously overpriced city (before the formention comes into effect) add the rising unemployment, low consumer confidence don't really think lowering interest rates would help if people are feeling uncertain about their work future and are now about to be even paying more to get to work. But I can't talk for the rest of the country.
Having said that, us double income and no kids folk with any spare change left will be spending it on our mortgages and continue to drive the inevitable recession. |
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By: kiwi_glen111
13/11/2008
10:30 am Yahoo! Profile:
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| I agree, NSW in particular Sydney is way over inflated. QLD, is the next frontier in my book. as you probably know, there has been mass migration up the coast for the last few years. .. |
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By: jo100378
13/11/2008
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haha I use to always joke that the state government wants to make sydney so unlivable that everyone wants to leave. Alot of people here got upset when a international survey rated Melbourne as one of the worlds most livable cities.
Yeah I live in Sydney.
Apparently people are leaving nsw at 10,000 a week |
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By: kiwi_glen111
14/11/2008
11:07 am Yahoo! Profile:
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| Phark really? ?? ten thousand...alot for sure. I used to live up the road from Newtown.. stanmore / petershem line.. it really got to me after awhile. Hopped on a plane to the coast one day and became a different man over night.. I love Melbourne too. I reckon you can allways judge a city by it's taxi drivers. Relaxed,friendly and no cages lol.. that was a few years back now, but if we moved back it would be QLD for me.. |
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By: powley9
14/11/2008
11:19 am Yahoo! Profile:
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| what about people that dont owe why should they subsardise the ones that do we had to pay top interest rates on our homes |
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By: kiwi_glen111
14/11/2008
11:28 am Yahoo! Profile:
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| I don't get how freeholders are subsidising people who owe....Im not the sharpest economist though, but i'll take your word for it. I look at it from a selfish perspective for me and mine.. Ive paid high interest rates for many years, and want a decent decrease. High rates cause mortgaee sales and high rents. - Less money in the bank means retail, travel, entertainment, construction all suffer.. Everyone loses except guess who.. |
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By: powley9
14/11/2008
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| but when your free hold if they drop interest rate so you get less for you money its pretty basic kiwi. |
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By: kiwi_glen111
14/11/2008
11:45 am Yahoo! Profile:
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| so you meen if you got money invested as well? |
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By: powley9
14/11/2008
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| thats it |
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By: kiwi_glen111
14/11/2008
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| Well yeah i see your point...didnt cross the old mind.. the govt work to the many i guess, and many dont save alot these days..better to hit the mortgage @ 8's than save @ 5's.. |
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By: kiwi_glen111
14/11/2008
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| then again, you can get 8 - 9's currently.. food for thought neway |
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By: powley9
14/11/2008
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| i just thought it was a point seeing we elected a FAIR government? |
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By: kiwi_glen111
14/11/2008
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| and here i was sounding like a socialist..haha. been a tough 9 years, cant blame me for the brainwash.... |
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By: mar_ja@xtra.co.nz
14/11/2008
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| wise investment and good business nous and making sure that your profit on return will maintain a good percentage first and then re invest back into the infrastructure if you are self employed or part of some organisation that is your representative, keep track of all the dealings and a damn good accountant and yeah see how it goes, do not invest or spend willy nilly and trust, those who you feel wil do right by you, so trust yourself first!! |
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By: inbound39
19/11/2008
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| What else would help is for Politicians to halve their wages. It is not justified in this current climate nor in any climate. The wage they get is bloody obscene given they squabble like kids most of the time and forget to serve us. They need to lead by example. |
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By: inbound39
22/11/2008
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| On the wages I saw...off hand if I recall...the lowest paid MP gets 123,000 dollars per annum and the PM has the highest with somewhere in the vicinity of 250,000 dollars per annum. You should also be aware that they also recieve many perks on top of this wage like accommodation,travel,etc. Kind of obscene when beneficiaries are struggling to put food in their stomachs and keep themselves warm. I would suggest politicians should lead by example in these times and halve their wages. If they can't live comfortably on half then they should employ a beneficiary as a budget adviser.....solves two problems at once then...unemployment and gross overpayment. |
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By: kiwi_glen111
22/11/2008
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Howdee Inbound..I agree. if our govenrnment say they cannot afford to reduce the cost of living in one form or another to help curb a recession, they are lying.. Salray increases as we are hitting hard times is a bloody insult..
I suppose they will ditch a few advisors, and kick back the gains from the redundancies to the favoured few.. bit dissapointing.. |
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By: stevewbright
22/12/2008
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http://www.rbnz.govt.nz/speeches/0104853.html
That was written in 2001. Here is what has changed: World economies are now seeing massive contraction...the US is on pace to do about 7% NEGATIVE GDP in 4Q, china continues to contract at an even faster rate. Oil prices are now in the $35 area after speculators drove the price to near $150 (in US $ as oil internationally sells on US$). Banks have collapased due to lack of regulations in bank-lending, mortgage lending, and derivatives (almost all US Based issues).
Instead of seeing inflation, the world has a new risk of deflation. Quantitative Easing is now being employed in the US, a slight twist to Japan's QE, as rates have hit a target of 0 to 25bp.
In order for NZ to pull out of this quickly too, it must lower rates to spur demand internally while also learning to produce goods for it's own use (and hence create jobs). Lower rates will increase monetary volacity (speed of which money changes hands) by reducing the borrowing costs/capital costs for business to expand.
At the same time, a lower NZ rate will reduce the value of the Kiwi abroad further spuring additional growth in exports. While negative for new money flows for investments, I would argue that this eventually is made up by a stock market that begins to show signs of life.
As inflation is not much of a risk at this point, lower rates make the best and most direct sense. Takes about 6 months or so for the rates to take effect. |
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By: jamisonjohn@rocketmail.com
22/12/2008
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the key words in that speech you posted were.....New Zealand's economic fortunes depend to a significant extent on a relatively narrow range of exported goods and services, and so we often face relatively sharp slow-downs and, on the flip-side, relatively fast accelerations. That is the nature of our economy.
if our economy is so relient on exports, it wont recover till demand returns for what we have been exporting.
stimulating internal demand means finding a new market, or, more thoroughly exploiting the existing market. nz is a small economy with a small internal market. we would have to increase wages to give people money to spend. we would have to plan production carefully so we dont swamp our tiny market. we would have to place tarrifs on competing imports. i think you are looking at a pie in the sky. |
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By: stevewbright
22/12/2008
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Correct that NZ economy will whipshaw with the world economy. However, lower rates will force goods to be more competitive via a lower NZ dollar. This will not stop a slow down, but it will both spur local demand and result in less of downturn in exported goods.
Increasing wages is normally inflationary, but consumption must also follow to increase velocity of money. I used to believe that free boards, with regard to trade, is the best approach. However, the problem with free-trade is the underlying assumption that the foreign goods are not being dumped onto the host market. Doing so results in forcing the local competition out business and hence out of work. Tarrifs help equalize the situation and each major item should be reviewed.
This approach is not a pie in the sky approach. Using interest rates is a monetary policy approach that is widely accepted in the European, Canadian, and US market. Which are a mess not becuase of the interest rates per se, but the lack of regulation. |
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By: jamisonjohn@rocketmail.com
22/12/2008
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i agree lack of regulation has caused the severity of this recession. i dont believe it was the cause though.
the pie in the sky part comes from the fact to increase demand, we have to exploit an already exploited market. and to make it work, give that market spending power by raising wages. production will not start before demand. |
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By: jo100378
Today (6:20 pm) Yahoo! Profile:
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Powley: Why should I:
1. Pay for my university degree when the baby boomer generation got theirs for free?
2. Why should I have children so that the baby boomer generation can retire?
3. Why should I pay $500k for a home that a baby boomer brought for $20K back in the day and didn't have a student loan to pay back or have to start saving to pay for their own retirement and fund their parents lifestyle? |
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