RBA cuts rates by 1%

[dibo]

As a person with savings and who is about to go overseas for nearly 3 months, all I can say is f**k the RBA! 



That is all.

 

[marinermick]

As a person with savings and who is about to go overseas for nearly 3 months, all I can say is f**k the RBA! 



That is all.

all i can say is crikey

hard times ahead

 

[dibo]

As a person with savings and who is about to go overseas for nearly 3 months, all I can say is f**k the RBA! 



That is all.

all i can say is crikey

hard times ahead

Going way beyond market expectations is a psychological move as much as anything else. Either its going to boost confidence that the RBA is willing to pull out the big guns to get the front moving in the right direction again, or its going to give the impression the RBA is panicking.

Either way, on the back of the decision the dollar dropped US2c (that means its dropped 10c in about a week through interest rate and commodity price movements) while stocks rallied. As the currency drops the trade balance evens out which is a good thing, but as a soon-to-be-travelling person its a complete shit.

 

[marinermick]

wonder if the bigger move was because banks were not going to pass on the full rate anyway

can imagine the banks now moving only .7 which will mean they will be in a healthier state than if they only moved .25 on a half percentage cut

 

[dru]

Mick I think you give the banks to much credit. The public has been softened to the idea of only half the official interest rate being passed on and we will be lucky to see 0.7% passed on. will be interesting to see what the credit unions do. Exactely how easy is it to change a mortgage over?

hard times ahead I agree.

 

[marinermick]

Mick I think you give the banks to much credit. The public has been softened to the idea of only half the official interest rate being passed on and we will be lucky to see 0.7% passed on. will be interesting to see what the credit unions do. Exactely how easy is it to change a mortgage over?

hard times ahead I agree.

in the current economic climate i do not mind banks lining their pockets more if it means any of them do not collapse leading to far more worrying economic consequences

 

[skilbeck]

the banks will not pass on any cuts and if they do it wont be much

 

[dibo]

Mick I think you give the banks to much credit. The public has been softened to the idea of only half the official interest rate being passed on and we will be lucky to see 0.7% passed on. will be interesting to see what the credit unions do. Exactely how easy is it to change a mortgage over?

hard times ahead I agree.

in the current economic climate i do not mind banks lining their pockets more if it means any of them do not collapse leading to far more worrying economic consequences

Banks need a little bit of wiggle room right now, because the last thing you need is a bank run like the one that brought down Northern Rock blind, brutal, animalistic fear tearing institutions down in a day.

That sort of thing puts panic through the rest of the herd, and the whole economy grinds to a halt. Interest rates skyrocket as banks stop lending to one another let alone to business or consumers and loans start getting called in - you could wipe 30% off the value of the nation's housing stock in a matter of days. Good loans (and businesses) get sunk in the wash too, which knocks the stuffing out of the entire economy.

The reason I think a 1% move is too much isnt because I dont think the economy needs it; its just that I think the market is spooked already, and thats a pretty sharp and sudden movement.

 

[dru]

Mick I think you give the banks to much credit. The public has been softened to the idea of only half the official interest rate being passed on and we will be lucky to see 0.7% passed on. will be interesting to see what the credit unions do. Exactely how easy is it to change a mortgage over?

hard times ahead I agree.

in the current economic climate i do not mind banks lining their pockets more if it means any of them do not collapse leading to far more worrying economic consequences

For sure don't want to see them fail either but you can still search for a better deal.

 

[marinermick]

the banks will not pass on any cuts and if they do it wont be much

westpac has already announced a 0.8% cut while aussie home loans are going down 0.75%

 

[FFC Mariner]

1% is the sign that tough times are coming and coming hard.

Turnbull, for an ex banker, you are just playing the populist card and you are a twat

 

[marinermick]

1% is the sign that tough times are coming and coming hard.

Turnbull, for an ex banker, you are just playing the populist card and you are a twat

it is a pity that there are plenty of uneducated folk out there and that they will believe turnbull

he wouldn't blatantly going against all his economic knowledge unless he knew there were votes in it

you can also see that he is trying to brand himself as a person for the common worker rather than the rich upper class snob he really is

 

[Jimmy]

1% is the sign that tough times are coming and coming hard.

Turnbull, for an ex banker, you are just playing the populist card and you are a twat

it is a pity that there are plenty of uneducated folk out there and that they will believe turnbull

he wouldn't blatantly going against all his economic knowledge unless he knew there were votes in it

you can also see that he is trying to brand himself as a person for the common worker rather than the rich upper class snob he really is

As a labor lover, I'm actually really hating this guy right now. He will win the next Federal election.

 

[tuftman]

Yeah its pretty much trying to instill confidence back in the market, inflation isnt a concern atm because there is a global recession, hence the falling oil prices as well(this may change however, European winter) I wonder how much of an effect this will actually have as far as boosting confidence in the market though, I think spooked is an understatement...I think that yeah while hard times are ahead, this is probably the shakeout the financial system needed, the severity of it though is still to be determined. I wonder how much further rates will fall around the world, cos now the European banks are feeling it as well.

 

[MattSimon]

Australia has more room to move in its i/r than most, although the RBA's bigger than expected cut may set a trend for central banks in Europe and Canada. Counterintuitively the Aussie $ actually rallied in the arvo after dipping slightly following the announcement. I bought some stuff from the US off the internet only a matter of weeks ago and was loving the virtual 1:1 with the $US, a very different situation now.

Can't wait to get a mortgage going this time next year when the i/r is at 4.5%

 

[serious14]

Was interesting watching all this unfold from Hong Kong, and doubly so because Australia never even rated a mention in any of these proceedings at all - I didn't even know this cut happened until I got home this morning.

Bankers in HK with significant investments in China don't have a care in the world right now, because China and the S.A.R. are both _awash_ with real money and _actual_ capital.  Anyone with a cent anywhere else though??  Quite the panicky sorts right now.

Seems the Dow lost another 5% of its value yesterday, and the FTSE got smashed as well. Both are on course to get even more slaughtered tomorrow.

 

[FFC Mariner]

As Warren Buffet says

"We are fearful when others are greedy and greedy when others are fearful"

Watch the lemmings rush to liquidate stocks in great companies for peanuts, invest in cash just as rates come down and wonder why "investing doesnt work for them".

Once in a generation opportunity to build a quality portfolio

 

[dibo]

As Warren Buffet says

"We are fearful when others are greedy and greedy when others are fearful"

Watch the lemmings rush to liquidate stocks in great companies for peanuts, invest in cash just as rates come down and wonder why "investing doesnt work for them".

Once in a generation opportunity to build a quality portfolio

whaddayareckon a bunch of (smart) governments are now doing? buying up hatfuls of drastically discounted banking stocks.

the dumb ones are buying bad debt, the smart ones are loading up on capital.

 

[FFC Mariner]

Calling the future fund..................c'mon get it

 

[dibo]

farkin farkin exchange rates farkin tanking dollar farkin...