Society/Culture Australian Property Prices to Crash?

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Admiral Motti

All Australian
Aug 13, 2013
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So the cashrate has been cut 0.5 and ANZ are only passing on 0.25. After passing nothing from the first rate cut

Any banks actually passing on the full 0.5?
not correct, ANZ passed on 0.18% last month, and 0.25% this month.
My guess is no bank will pass on the full 0.5% over the two months, those that went down 0.25% last month will do 0.15% - 0.20%
 

Power Raid

TheBrownDog
Oct 15, 2004
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It won’t do much. Lowe has been asking the govt to extract the digit for a while now but the symbolism of a surplus is more important that fiscal policy things moving.
the gold boom in Australia is FX driven, so to is our amazing iron ore and coal revenues

I'd far rather our industry drive the economy than a government credit card

Do you really feel a credit card is a sustainable way to run an economy? How many decades should we use a credit card before we rely on the economy itself?
 

Messenger

No, I’m just disappointed
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the gold boom in Australia is FX driven, so to is our amazing iron ore and coal revenues

I'd far rather our industry drive the economy than a government credit card

Do you really feel a credit card is a sustainable way to run an economy? How many decades should we use a credit card before we rely on the economy itself?
You talk about the credit card like it isn’t happening already.

I think a sustainable way to run an economy is to have sufficient revenue base to provide services for the population. Govt debt (the credit card) has been increasing for a while now under our marvellous economic managers.

I’m sure the $158B in poorly targeted tax cuts is going straight on the plastic as well.

The fact that the current increase in resources price is FX driven should be a concern, should it not? Some external monetary policy changes and the advantage is gone.
 

Power Raid

TheBrownDog
Oct 15, 2004
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You talk about the credit card like it isn’t happening already.

I think a sustainable way to run an economy is to have sufficient revenue base to provide services for the population. Govt debt (the credit card) has been increasing for a while now under our marvellous economic managers.

I’m sure the $158B in poorly targeted tax cuts is going straight on the plastic as well.

The fact that the current increase in resources price is FX driven should be a concern, should it not? Some external monetary policy changes and the advantage is gone.
We should all remember a healthy economy stands up on its own, long term, not a credit card. Just because we have had piss poor economic policy for 12 years, doesn't excuse the future. In fact we need to get out debt down at some stage to have our "kitty" full, in preparation for the next big down turn which isn't far away (down turns come every 5-10 years and big ones every two to five cycles).

That however, doesn't mean we don't need to tweak fiscal and monetary policy to avoid the extremes the economy can deliver.



Just take a step back for a moment.........at our last election one party wanted to destroy our investment sector attacking long term investment classes like infrastructure, R&D, tecnology, innovation, renewables (outside of some crazy government controlled subsidies concept) etc etc.

This would have been absolute madness and resulted in the government pulling out the credit card to take up the private investment void. Fortunately we dodged that bullet.

What that does emphasise is governments role, to develop good sustainable policies to strengthen the economy and if not......just try no to F it up.



oh and mining is always returns to a cost plus business. Longer term deviations are booms ad busts and the short term anomalies are driven by drivers such as FX windfalls. So no it's not a concern.....windfalls come and go.
 
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