RBA cuts rates by 1%

[Auburn Mariner]

Interestingly, the SMH has an article today that says that houses in Western Sydney will increase in value by 9% over the next two years. You would think that some of that would flow onto houses on the Coast, as the two markets are not dissimilar.

This means that if you keep on bringing your lunch, avoid buying coffee, shop at Aldi, limit your spending to Mariners Season Tix and FORGET your West Coast-Vegas-Grand Canyon-Big Easy sojourn, that your equity will increase significantly by the end of 2010.

It is hard to see that Interest Rates will spike for a while. Serious is right on, outside East Asia, the world is really struggling. Obama or McCain (realistically, Obama would have to get assassinated NOT to win from here) will inherit the greatest financial mess in USA history, even bigger than the Wall St Crash in 1933.

Jimmy made a point above that he thinks that Malcolm Turnbull, MHR for Wentworth, will win the next Federal Election. If Labor does not manage the economy well AND, crucially, convince marginal electorate voters that they are managing the economy well, then the Lodge could very well have its first multi-multi-millionaire by Christmas 2010.

Turnbull is NOT overly popular within his own party (Nelson is MUCH more popular as a man within the Liberal ranks), BUT, he is a proven success story and may very well generate a truly fascinating Federal Election. I would LOVE to see Rudd & Turnbull go head-to-head, two driven and intelligent men going full throttle. Bring it on.

 

[dibo]

the lodge already has it's own multi-multi millionaire resident (therese rein is not hard up for a crust, therefore neither is KRudd), and i'm sure others in the past have been in similar situations.

the Oz economy is in a really good spot relative to the rest of the world. we've got a big budget surplus (thank you mining boom!) and high enough interest rates that we've got room to cut rates and allow the budget position to dip - expansionary monetary and fiscal policy working in tandem. if interest rates fall to 4% and the budget dips to half of its present surplus level, that's a massive kick to the economy to keep it rolling.

the government's tax revenues will fall and welfare expenditure will increase through unemployment rising, but the government can also afford in these circumstances to go for some good old keynesian nation building.

there's nothing like a make-work program funded by government dollars to smooth out the bumps of a sharp downturn. if you get productivity enhancing infrastructure to ensure we can roll with the fastest on the following boom then all the better.

 

[dru]

houses in Western Sydney will increase in value by 9% over the next two years. You would think that some of that would flow onto houses on the Coast, as the two markets are not dissimilar.

over the last 30 odd years (possibly 50 been a while since I studied land valuation at uni) house prices have doubled roughly every 7 years. It's questionable if this rate of increase will be sustained but it is food for thought.

 

[tuftman]

Compare our current cash rate-6% and a budgetary surplus of $23 billion to the USA whose cash rate is down to around 2%, and the $700 billion bailout package, while maybe short term a quick fix, long term what does it do for consumer confidence knowing that the government is bailing banks out left right and centre. Last month GM and the Ford motor company asked for assistance packages as oil prices and a lack of outright cash amongst consumers led to a huge decrease in car sales. Co-ordinated rate cuts across Europe are on the way, if they havent already been delivered. So the US are already at breaking point, with little room in their monetary policy, and a stretched fiscal policy to counter any further momentum gained by the sub-prime collapse, the Europeans are starting to feel it now, with Northern Rock bank being nationalised, and several German banks going south fast.
Serious14's point about SE-Asia still having money that is still worth something, and a lot of it. Isnt it wonderful that what has driven our unprecedented economic growth-the mining boom-is fueled chiefly by exports to this region. So money will continue to come into the economy, maybe not to the same scale, from the aforementioned area. The RBA has plenty of room to move, and the federal govt. has a huuuuuuuuuuge surplus to play with. The Australian dollar, well, ummmmmm...I wouldnt wanna be travelling overseas atm but anyways.

 

[Auburn Mariner]

Dibo, I would reckon that only J M Fraser, he of the land in the rich agricultural district of Western Victoria, would have been close to a multi-multi. R J L Hawke and J W Howard have decent property portfolios in Sydney, but Malcolm is seriously rich (clearly, Therese Rein is a very accomplished businesswoman and the Prime Minister is not short of a dollar).

Yes, our economy is in good nick, thanks to WA & the money-making machine that is the GST. Our links to the burgeoning Chinese economy have underwritten our fiscal position.

Labor's Federal future revolves around the Treasurer doing his job efficiently and effectively. As has been said before, this country has often turned to the Conservatives when Labor has lost the plot with our fiscal management.

Labor has the building blocks in place: a highly intelligent PM, an outrageously talented Deputy PM who is ready and waiting when Kevin has had enough, and people like Shorten, Combet and Maxine on the subs bench. But it is Wayne Swan that holds the key; if Malcolm Turnbull can turn the screws there, then it is game on at the next election.

 

[dru]

there's nothing like a make-work program funded by government dollars to smooth out the bumps of a sharp downturn. if you get productivity enhancing infrastructure to ensure we can roll with the fastest on the following boom then all the better.

Yes maybe we need to build a new pyramid or something as a work for the dole project.

The Australian dollar, well, ummmmmm...I wouldnt wanna be travelling overseas atm but anyways.

So how long until you leave dibo? and why didn't you change your money yet.

 

[dibo]

there's nothing like a make-work program funded by government dollars to smooth out the bumps of a sharp downturn. if you get productivity enhancing infrastructure to ensure we can roll with the fastest on the following boom then all the better.

Yes maybe we need to build a new pyramid or something as a work for the dole project.

Was more thinking ports, road and rail infrastructure, but if its a pyramid ye want, a pyramid shall ye get.

The Australian dollar, well, ummmmmm...I wouldnt wanna be travelling overseas atm but anyways.

So how long until you leave dibo? and why didn't you change your money yet.

Monday October 20. We were more thinking of carding it around the place we figure if you get out a decent amount and not do it every day using ATMs is more convenient and no more expensive than travellers cheques, and weve both got Visa Debit cards so credit transactions are easy.

When your currency tanks, this is less of a good idea, but you cant really bank (sorry) on this stuff happening out of the blue, and I honestly would not have guessed even a week ago that this was likely to happen.

 

[dru]

Was more thinking ports, road and rail infrastructure, but if its a pyramid ye want, a pyramid shall ye get.

It's something about the thought of 300k of unemployed bogans pulling large stone blocks while being whipped that appeals.

Monday October 20. We were more thinking of carding it around the place we figure if you get out a decent amount and not do it every day using ATMs is more convenient and no more expensive than travellers cheques, and weve both got Visa Debit cards so credit transactions are easy.

When your currency tanks, this is less of a good idea, but you cant really bank (sorry) on this stuff happening out of the blue, and I honestly would not have guessed even a week ago that this was likely to happen.

Figure you can get those cash passports nowadays which means you exchange your cash at a decent rate before you go and have the convinience of using the local atm's then have credit/debit cards as backups. cash and travellers' cheaques are just so old fashioned nowadays

 

[dibo]

d'oh!

still, we didn't really know this was going to happen...

 

[FFC Mariner]

From the Uk (Daily Mash)

BANKS TO LEND YOU YOUR OWN MONEY   

THE government is to invest 500bn of your money in British banks so they can lend it back to you with interest.

The historic move is being hailed as a lifeline for the financial system as long as nobody asks too many questions.

Julian Cook, chief economist at Corbett and Barker, said: "The government will give your money to the banks so the banks can start lending you that money, probably at around 7% .

"Thanks to all the interest you're paying on your own money, the banks will make billions of pounds again and normality will be restored.

"After a few years of this the government will cash in the bank shares it bought with your money and use the profits to build a huge f**king dome somewhere."

He added: "In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot."

Chancellor Alistair Darling said the decision had been taken in tandem with the banking industry, adding: "They used a lot of dirty words I'd never heard before and one of them had an angry looking dog."

Meanwhile, Emma Bradford, a sales manager from Bath, said: "Why doesn't the government just give my money to me so I can buy stuff from businesses who will then make a profit and put it in a bank?"

But Mr Darling insisted: "Shut up."

http://www.thedailymash.co.uk/news/business/banks-to-lend-you-your-own-money-200810081308/

 

[marinermick]

haha, you have to laugh at all these people saying "why doesn't the government just give me the money?"

russell crowe said the same thing on leno

even those with a half a brain will know that this would cause massive inflation and the money they give you would become worthless

 

[Jorome Alexander Bennett]

I like having lots of money, even if I must use a wheel barrow full to buy bread. It looks impressive.

 

[FFC Mariner]

More from the Daily Mash. For those of us who are able to remember the last time the shit hit the fan and being a leftie muso was all the rage........

BILLY BRAGG, WARN ECONOMISTS   


WITH unemployment expected to reach three million by the end of next year, economists were last night warning of Billy Bragg.

The dire financial climate means there is now a greater chance of the communist singer-songwriter than at any time since 1987.

Dr Tom Logan, of Reading University, said: "Two years ago I said if we did not exert greater control over monetary policy we would simply be creating the perfect conditions for Billy Bragg.

"By next April we could find ourselves in the middle of a nationwide tour involving the Communards, the Style Council and - just saying it makes me want to die - the Blow Monkeys.

"And every show will begin with George Monbiot reading a poem about how the trees are not unemployed. Holy Jesus Christ almighty, it must be stopped."

Professor Bill McKay, of University College London, said: "The core economic purpose of any Labour government is to prevent Billy Bragg.

"If, as it appears, we are returning to a cycle of boom, Bragg and Jimmy Sommerville's excruciating falsetto, one is forced to ask the question, 'what is Gordon Brown for?'."

Professor McKay added: "If I so much as hear the introduction to Between the Wars, I swear to God I will throw myself under a horse."

 

[marinermick]

More from the Daily Mash. For those of us who are able to remember the last time the shit hit the fan and being a leftie muso was all the rage........

BILLY BRAGG, WARN ECONOMISTS   


WITH unemployment expected to reach three million by the end of next year, economists were last night warning of Billy Bragg.

The dire financial climate means there is now a greater chance of the communist singer-songwriter than at any time since 1987.

Dr Tom Logan, of Reading University, said: "Two years ago I said if we did not exert greater control over monetary policy we would simply be creating the perfect conditions for Billy Bragg.

"By next April we could find ourselves in the middle of a nationwide tour involving the Communards, the Style Council and - just saying it makes me want to die - the Blow Monkeys.

"And every show will begin with George Monbiot reading a poem about how the trees are not unemployed. Holy Jesus Christ almighty, it must be stopped."

Professor Bill McKay, of University College London, said: "The core economic purpose of any Labour government is to prevent Billy Bragg.

"If, as it appears, we are returning to a cycle of boom, Bragg and Jimmy Sommerville's excruciating falsetto, one is forced to ask the question, 'what is Gordon Brown for?'."

Professor McKay added: "If I so much as hear the introduction to Between the Wars, I swear to God I will throw myself under a horse."

ROFL, haven't laughed so much in ages.

Great stuff