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???? 

[the_hawk*]

The lowering of interest rates is a sign we are getting very close to a recession. 

Low interest rates combined with high debt and a slowing of the economy = big trouble 

The mining boom has peeked and is now slowing rapidly, its over and we don't have any thing to fall back on as all our manufacturing has moved over seas.

We are nothing but consumers with out an income 😉

[monman12]

I think you and I LL live in different economic worlds

"interest rates will always be lower under a colition government'...so much for that. howard boasted about it , but swan achieved it." Remember the  17% interest rate 1989-90 in the middle of the ALP 5 term rule?

I would hardly be crowing about lowering the RBA cash rate, unless you do not understand the correlation between it and the economy:
Analysts say the move is part of a "whatever it takes" approach to supporting the economy.
the RBA cut rates because it sees a weakening economic outlook that it must try to turn around.

The central banks or reserve banks of countries generally tend to reduce interest rates when they wish to increase investment and consumption in the country's economy.

LL: "as for the self-funded you mention, reliance on the stock market for income is a gamble"
Where do you think the various business managed super/pension funds source a lot of their income LL?  I have had a good income from my SMSF portfolio (shares only) for some years, even through the GFC.

"swan achieved it." He certainly did, a low interest rate and a high deficeit.

[lakeland27]

Remember the  17% interest rate 1989-90 in the middle of the ALP 5 term rule?

very well. on business loans it was even higher.

LL: "as for the self-funded you mention, reliance on the stock market for income is a gamble"
Where do you think the various business managed super/pension funds source a lot of their income

that doesn't prevent investment from being a gamble, variables can change or lower the returns as you know. the variables are not within the investors control .. its a gamble alright , and has always been seen that way, hence the term 'Speculator'  ?

i guess its  a case of priorities. homebuyers want cheap interest rates, investors want high.

the point is  that the previous government boasted of keeping them lower.. lower than Labor.  this has been proven false.

[monman12]

LL: "its a gamble alright , and has always been seen that way, hence the term 'Speculator'  "

Nonsense,  "Speculator" refers to speculative stock purchase, as opposed to "blue chip" investment:-

"The opposite of stock market speculation is making investments. This strategy follows the "buy and hold" theory. Investors will review a stock and determine the long-term expectations of the stock and the issuing firm. Rather than making a few quick dollars on price movements, the investor will make money from dividends given from the company to the shareholder or through long-term prices increases. This strategy works well for retirement accounts or similar types of investments."

If you consider LL, our economy is based on  free market trading with a vast proportion of wealth invested in company shares. If as you think, shares are a gamble and could fail, the economy would follow.
 I have never speculated in shares, just invested for income, thus no speculation..

[the_great_she_elephant]

 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.

:O:O:O Newstart, have you any idea what housing costs in Port Hedland, Karratha, Tom Price for example.?

[lakeland27]

LL: "its a gamble alright , and has always been seen that way, hence the term 'Speculator'  "

Nonsense,  "Speculator" refers to speculative stock purchase, as opposed to "blue chip" investment:-

"The opposite of stock market speculation is making investments. This strategy follows the "buy and hold" theory. Investors will review a stock and determine the long-term expectations of the stock and the issuing firm. Rather than making a few quick dollars on price movements, the investor will make money from dividends given from the company to the shareholder or through long-term prices increases. This strategy works well for retirement accounts or similar types of investments."

If you consider LL, our economy is based on  free market trading with a vast proportion of wealth invested in company shares. If as you think, shares are a gamble and could fail, the economy would follow.
 I have never speculated in shares, just invested for income, thus no speculation..

well it does happen. not so much with blue-chips , . the westpac parcel i was handed does very nicely, the others fluctuate. if westpac  went belly up tomorrow there  is no guarantee i'd get anything for them.. this means there is a risk having money tied-up in any stock, regardless of pedigree. it is speculation.

[purple.cow]

Remember the  17% interest rate 1989-90 in the middle of the ALP 5 term rule?

Bring those days back now, please, please, please 😄

[cherry*135]

Home loan interest rates hit 22% when we first bought a house (NZ). That is something  to cry in your soup about, if you had a home loan at the time.

[monman12]

LL: " if westpac  went belly up tomorrow there  is no guarantee i'd get anything for them.. this means there is a risk having money tied-up in any stock, regardless of pedigree. it is speculation."

LL you are from a different economic world, and appear to not read posts, or research, or invest.!

"The opposite of stock market speculation is making investments. This strategy follows the "buy and hold" theory. Investors will review a stock and determine the long-term expectations of the stock and the issuing firm."

LL, do you really believe there would ever be a chance of "if westpac  went belly up tomorrow  "this means there is a risk having money tied-up in any stock, regardless of pedigree. it is speculation."
Tied up? you can buy and sell on a daily basis, hourly even. Research "speculation" LL.

I give up LL, "there is a risk having money tied-up in any stock" where would you put your money LL?

The financial industry gave the NBN a miss, the ALP underwrote it,  that is a risk with our " money tied-up"

[lakeland27]

i give up LL, "there is a risk having money tied-up in any stock" where would you put your money LL?

The financial industry gave the NBN a miss, the ALP underwrote it,  that is a risk with our " money tied-up"

so there is no risk ? i have 5 children 3 under 16 i dont put money anywhere but into the usual junk and essentials. i have a parcel i was given instead of other forms of payment, it has grown into something substantial but it doesn't interest me in any other way.

the NBN jibe is wasted on me too. its a great far-sighted scheme .. it uses money in a manner beneficial to all (despite inane protests) and i'm very happy it isn't owned ny some leech-miner like telstra. btw, do you think telstra will gift the copper network to turnbull ? he thinks so..