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Any real reson as to why drop?
Or are we just keeping up (down) with the Singaporeans?
Ok, assume you're right; which price ranges are these evil price-wrecking investors buying in, mostly?
There seems to be a worldwide worry that deflation is on the way and central bankers often move in lock step ala the GFC.
My apologies, Freckle - I just realised I should be directing this conversation more at Wategos:At a guess I would say that 'evil price-wrecking' investors don't actually constitute any significant portion of the market and I wouldn't have the foggiest where they might be investing.
I remember some years ago a boom in Tassie due to extremely high rental returns of the day.I don?t know how you can think this, many markets in Australia are now dominated by investors and speculators (aided by NG). They are the force pushing prices up, nothing else.
The most powerful emotional force in all bubbles, Greed.
Deflation's already in the system primarily in the form of bulk commodity prices and some services. That's lowering the price of goods (and some services).
The reality is though that an economy has inflation, disinflation and deflation all at the same time. Each components percentage effect varies as do the parts of the economy they impact.
In 1985 an F&P toploader washing machine cost me NZ$990 and I got it at a discount. My income was around $12k/yr which was about average for the time.
It is probably more accurate to say (that on average) we are in a period of disinflation with deflationary pressures increasing.
There seems to be a worldwide worry that deflation is on the way and central bankers often move in lock step ala the GFC. We also had Canada move their rates down last week.
That all said I had a look at the futures market just now and the March 90 day bank bills are trading at 97.41. This implies a yield of 2.59% so the money market is not convinced rates will be lowered tomorrow as the cash rate is 2.50%.
http://www.asx.com.au/prices/asx-futures.htm
But this one says 67% chance.
http://www.asx.com.au/prices/targetratetracker.htm
Interesting. In the space of 10 days 20 Jan - 30 Jan the odds of a cut went from 18% to 67%. That's a fairly radical shift in thinking.
My guess is the SNB unpegging from the Euro and the Greek election has rattled a few in the game.
I was reading an article the other day that suggested that the falling oil price is worth 2 rate cuts. If so I would imagine the RBA would take falling commodity prices into the equation and its effects on consumer costs. If consumer costs are falling then that begs the question of why does the economy need a rate cut at this time.
I'm struggling to see any part of the economy that would actually benefit from a rate cut or in such dire straits that it needs one.
The only logical conclusion I can make is that a RBA cut is a currency play to keep downward pressure on the AUD against its major trading partners not a direct spur for increased activity.
Interesting. In the space of 10 days 20 Jan - 30 Jan the odds of a cut went from 18% to 67%. That's a fairly radical shift in thinking.
My guess is the SNB unpegging from the Euro and the Greek election has rattled a few in the game.
I was reading an article the other day that suggested that the falling oil price is worth 2 rate cuts. If so I would imagine the RBA would take falling commodity prices into the equation and its effects on consumer costs. If consumer costs are falling then that begs the question of why does the economy need a rate cut at this time.
I'm struggling to see any part of the economy that would actually benefit from a rate cut or in such dire straits that it needs one.
The only logical conclusion I can make is that a RBA cut is a currency play to keep downward pressure on the AUD against its major trading partners not a direct spur for increased activity.
Yep. Its the currency wars race to the bottom. Problem is if we have a high interest rate differential then we will have funds flowing into the AUD. I wouldn't like to be Glenn Stevens trying to balance on the edge of the knife.
House prices outside Sydney and Melbourne aren't doing much. Brisbane and Adelaide will begin to boom when rates are cut.I'm struggling to see any part of the economy that would actually benefit from a rate cut or in such dire straits that it needs one
I guess whats really going to happen in the larger more exxy cities we will have more of the Euro model
70 % rental/ 30 % ownership
To me at least I can see a clear transition to that over time.
Currently ASIC APRA and others that are looking to provide stability, arent really going to get in the way of that in the long term.
Its a train thats coming amd whether you have ticket or not, we are all on that train............ no wrecks pls
ta
rolf
There seems to be a worldwide worry that deflation is on the way and central bankers often move in lock step ala the GFC. We also had Canada move their rates down last week.
That all said I had a look at the futures market just now and the March 90 day bank bills are trading at 97.41. This implies a yield of 2.59% so the money market is not convinced rates will be lowered tomorrow as the cash rate is 2.50%.
http://www.asx.com.au/prices/asx-futures.htm
House prices outside Sydney and Melbourne aren't doing much. Brisbane and Adelaide will begin to boom when rates are cut.