Lowest interest rates since 1959?

[catsnknots]

Is that true??? 

And what was the drama that caused it to go that low? 

Swannie says you can congratulate him.... that this is a good thing and think of all the money you can save on your home loan... 

Well I heard that the statistics for home loans showed that the majority of people don't have one... tried looking for statistics to compare but was not lucky... might try again later... 

To me it seems that a small percentage will be better off but in reality a lot of people that are self funded in retirement are worse off... and that this will actually push them onto the Government Pension as their income is reduced... 

These interest rates cuts are because the economy is on a downturn... things are not looking good... 

And Swan wants to tell us all things are ok???? 

[lakeland27]

It is meant to encourage the first home buyer into the market but they will not buy when times are so hard for so many people.

thats not the reason, prices are out of most peoples reach now.

[debra9275]

Interestingly, the share market has really rebounded over the past six months and the banks have reported  huge profits despite the low interest rates

[catsnknots]

Big business is booming.. that is why their shares are doing so well and the stock market is doing well (from what limited understanding I have) ??? 

Woolies and Coles are showing record profits yet the farmers they are buying from are going broke??? 

Banks are also showing massive record profits, much better than mining companies, yet they are not being asked to pay a super profits tax... I don't get that.. they are getting rich from the payment made by hard working Aussies, they benefit more from the everyday Aussie than the mines do. 

I am not an economist.. I can only get what I understand from a well written article or an economist explaining it on TV... 

I don't have a mortgage, probably will never be able to buy a home if the prices keep going up... I have to count on my savings and super to be my income nest egg of the future... 

a year ago I had a pretty optimistic outlook but in the past 6 months I have started to have real doubts about the future.. I have stopped a lot of spending.. bills are creeping up and I don't see a positive outlook if we keep going like this.. 

[lakeland27]

so why vote for someone who's going to remove tax-free thresholds and other benefits and make it harder ? i get what you are saying about housing though. its a problem many face.

[catsnknots]

I hope if I plough enough into my Super I can buy a house in a rural area very cheap when I retire.... 

I am in no need to live in a city and love the peace of small towns. 

I have no problem with paying my fair share of tax... on my income I will probably get a refund of all of my tax this year.. I work part time and will probably not make 35K

I think that because of the benefits I am still eligible for via Centerlink I should still pay a little bit of tax if I can.  It is only fair that I put in what I can.. let me keep my job and I will be happy to pay tax.... push it to the point where i have no job and I cannot pay tax and I am in a situation where my job may not be there in 12 months time and that is a worry. 

People need to stop thinking that the government is a cash cow. I would even be happy with a small increase in the GST.. that is a fair way that you can distribute the tax burden. Rich people actually pay a lot more GST because they spend a lot more.... 

[newstart2380]

1. historically low interest rates. ' interest rates will always be lower under a colition government'

so much for that. howard boasted about it , but swan achieved it.

Response

Interest rates are the lowest in 50 years BUT the deficit is the highest it has EVER been.

2.if manufacturing and other exports are a problem its because of the high dollar and high wages.

Response

The dollar is high because of the low interest rate which has forced the reserve bank to drop the rate to try and encourage spending (not working at present due to no confidence in the government)

Wages are high because the government is not able to control or negotiate with unions, this government is a puppet to the unions.

3. we simply cannot compete.. governments cannot control the dollar.

Response

Governments may not be able to control the $ but can take steps to stimulate the economy.

thats why miners had to pay (but managed to wriggle out by gold -plating)

Response

Mining companies have kept Australia afloat for years but unfortunately this government has NOT taken advantage of this and companies have halted exploration, BHP is just one of these to the tune of $34B another online CSG company in WA $43B. The jobs created in these mining and CSG areas are the major factors in keeping unemployment down.

the hard times ahead won't be of Swans making , but austerity an article of faith from the right will bring them forward, despite that approach not working anywhere else.

Response

Swan has already (along with labor) created the problems we will face for at least a decade, it is now up to someone else to clear up the disaster, like a tornado he has ripped thru the surplus we had, destroyed confidence in politics, stood behind a PM who lies, cheats and bullies her party. Please don't talk about Rupert Murdoch controlling his staff, our PM is an expert,.

Definition of an expert - EX is the unknown quantity and SPERT is a drip under pressure.

The only policy this government can boast to is the NDIS which is and should be fully supported by the opposition, the PM tried to make it an election issue but it back fired big time when TA agreed it should go ahead ASAP, another example of her distain for all Australians but particularly people with a disability.

[newstart2380]

It is meant to encourage the first home buyer into the market but they will not buy when times are so hard for so many people.

thats not the reason, prices are out of most peoples reach now.

In cities maybe but not in most regional areas, if people can take the step to find work away from the cities housing is affordable. Try the mining and CSG areas, great wages, great housing opportunities, great life style and communities.

Not for everyone but there are so many opportunities for all types of work away from the cities, people just have to take that first step, have a good look and make the effort.

[purple.cow]

It is meant to encourage the first home buyer into the market but they will not buy when times are so hard for so many people.

thats not the reason, prices are out of most peoples reach now.

It's not the interest rate that raises house prices, but the greed of the sellers wanting the higher returns on properties.

[purple.cow]

High interest rates and a very strong Aussie dollar is what I want to see.

[cherry*135]

OP if you had a home  loan you would be very pleased with the lower interest rate. Less money for the bank more for the homeowner. More disposable income for homeowners to spend elsewhere, retailers, travel, home renos...boost the economy rather than that money going to a bank