DeanCollinsParticipant@deancollinsJoin Date: 2015Post Count: 376
Can the RBA really go to 1.5%
….and if they do why is everyone so negative property eg wouldn’t this drive purchase prices up? (Though I think we are already paying too much and I think it sucks as I’m playing the long game for 20 years from now….not interested in how the next 2-4 years gains go haywire etc).CharlieXParticipant@charliexJoin Date: 2015Post Count: 98
“cut the official cash rate from 2.25% to 1.5% by late 2015” sounds like a real way to stimulate the economy?
this whole concept of manipulating the economy will eventually cause a crash. whatever happen to relying on supply and demand?
even if RBA plays with the cash rate, it’s not a direct relationship that the lenders will response as we have seen before. it’s actually a great way to make the big 4 lenders fatter?Jason StaggersParticipant@jason_staggersJoin Date: 2006Post Count: 61
I wouldn’t be the least bit surprised if we hit 1.5%. It seems easing is all the rage with the central banks of the world today. And considering the time Glenn Stevens spent under the tutelage of the Federal Reserve Bank of San Francisco, we might even see their .25%.DeanCollinsParticipant@deancollinsJoin Date: 2015Post Count: 376Jason StaggersParticipant@jason_staggersJoin Date: 2006Post Count: 61
That’s definitely a concern @deancollins. Rates will eventually revert to their historical mean. Once we hit the bottom, whenever that is, we will have attracted more and more speculators into the market which will make the inevitable pull back all the more painful. This is why I think the Austrian economists were onto something. Like @charliex hinted at, the more government intervenes, the less supply and demand can naturally weed out inefficiencies.