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List Mgmt. 2025 Trade/FA Thread

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For the last time, if you were earning 10% on your cash, you weren't borrowing at anything other than 12/13% or more. it's not even an argument. You are proposing the impossible.

Did Aussie banks ever do the US style 30 year fixed rate mortgage? If you were on one of them when the interest rates went through the roof i nthe 80s, you would have had the manic situation
 

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Suns deliisted Alex Sexton, Lloyd Johnson and Tom Berry.
 

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Manic…. your move.
Interest rates weren't fixed from what I remember. It was the late 80's that everything blew up. I moved out of home with my girlfriend at 18yo. We both worked and were paying $70 a week rent. From anytime up until about 1988, there was no reason why a young couple couldn't save a substantial portion of their income. In those years if you put money in the bank you were earning over 10% interest on your savings. By the time the recession hit our loan rate also went up to 17%. The difference was that we were able to save for a good 10 years. That should put a bit of perspective on it. However, in the good years leading up to the recession, interest rates on home loans would have been below 5%, whilst you were still getting 10% on savings, it had to come to a head
 
Interest rates weren't fixed from what I remember. It was the late 80's that everything blew up. I moved out of home with my girlfriend at 18yo. We both worked and were paying $70 a week rent. From anytime up until about 1988, there was no reason why a young couple couldn't save a substantial portion of their income. In those years if you put money in the bank you were earning over 10% interest on your savings. By the time the recession hit our loan rate also went up to 17%. The difference was that we were able to save for a good 10 years. That should put a bit of perspective on it. However, in the good years leading up to the recession, interest rates on home loans would have been below 5%, whilst you were still getting 10% on savings, it had to come to a head
Mortgage rates on my first house were 7.5%
 
Did Aussie banks ever do the US style 30 year fixed rate mortgage? If you were on one of them when the interest rates went through the roof i nthe 80s, you would have had the manic situation
I've never heard of them in Aus? Manic seems to have lived in the magical world called Risk-Free Interest Rate Arbitrage-istan.

The US had it worse than that - those numpties have/had "fixed rate" loans that borrowers could break and re-finance if rates dropped. Frank Cicutto and his gang of chuckleheads weren't aware of this when they bought the US Homeside loan book for $2bn and wondered why its value went through the floor in a period of low interest rates.
 
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