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Howard ... Gone (pg. 2)
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View this Thread in Original format
| Beat Blog |
| quote: | Originally posted by BJeT
Thanks to Johnny and Mr. Costello forming a more 'prosperous' country I remain in the rental market while the prices of homes continue to rise. I am trying to think of a new 'Great Australian Dream' because now I can't afford to buy SFA. All that the first home buyers grant seems to have done from where I am sitting is contribute to increased property prices - top job, fellas!
2c worth
Ben |
Explain how rising house prices are the government's fault? |
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| echosystm |
| quote: | Originally posted by Beat Blog
Explain how rising house prices are the government's fault? |
low interest rates invoke investment. the demand on the house market is high. therefore, prices rise as supply is (relatively) fixed.
the rba set interest rates and are "officially" separate from the direct control of parliament. however, those in government have control of all the factors which indirectly affect rates. therefore, it is the governments fault.
the worse the market gets now, the bigger loans people will have. when the bubble bursts, and it will, those people in debt will be royally ed because they'll be paying back more on their loan. |
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| narcism |
| quote: | Originally posted by echosystm
NEW AVATAR! |
:haha: :haha: :haha: |
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| Fledz |
| quote: | Originally posted by echosystm
low interest rates invoke investment. the demand on the house market is high. therefore, prices rise as supply is (relatively) fixed.
the rba set interest rates and are "officially" separate from the direct control of parliament. however, those in government have control of all the factors which indirectly affect rates. therefore, it is the governments fault.
the worse the market gets now, the bigger loans people will have. when the bubble bursts, and it will, those people in debt will be royally ed because they'll be paying back more on their loan. |
If you think the government in this day in age has a big say in interest rates, you're sadly mistaken.
Neither Liberals, nor Labor, nor Greens, nor the Cats for lol party can do much to halt the rise and fall of interest rates. This isn't the 1900s anymore, the majority of the economy is governed by the world market, not politicans.
Good thing from this election is that the Coalition still holds the Senate so we won't have the totally skewed decisions that we've had since the last election. It's perfect now because it gives a new government a chance to prove themselve but restricts them from doing whatever they like (ala the last 3 years of Coalition rule). |
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| EgosXII |
:) :D :happy2:
postscript: LOL @ echo's avi XDXD |
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| echosystm |
| the government has as much (indirect) control over rates as a government can. of course the "market" ultimately dictates what happens, but every little thing counts. |
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| steve_may |
if interest rates OS rise... so do ours. at least liberal got them down from labor.
now lets see how much impact the gob have on the rates :P
waits for new labor's "new australia" to return to old labor ways and everything up
;) |
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| pkcRAISTLIN |
| quote: | Originally posted by Paulie
ill laugh in about 3-4 years when renegade jumps on the other bandwagon. |
methinks you don't quite understand, but thats ok. |
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| pkcRAISTLIN |
| quote: | Originally posted by steve_may
if interest rates OS rise... so do ours. at least liberal got them down from labor.
now lets see how much impact the gob have on the rates :P
waits for new labor's "new australia" to return to old labor ways and everything up
;) |
oh, so its not john's fault for interest rates, but its "old labor's" for the economy in the 80s => mid 90s.
right. |
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| Paulie |
| Ill give 2 years before all the labour state governments and the federal government collude and increase the GST. |
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| Fledz |
| quote: | Originally posted by echosystm
the government has as much (indirect) control over rates as a government can. of course the "market" ultimately dictates what happens, but every little thing counts. |
So you would trade higher interest rates for higher inflation?
The only way to combat inflation is with interest rates rises. Sadly the home owners take the brunt of the rise, but it's a necessary evil to keep our entire economy good for all Australians.
There is no chance in hell Labor or Liberals (if they had stayed in power) will lower interest rates. It's just not a wise thing to do with such a booming economy and record low unemployment rates.
They are already predicting 2 more interest rate hikes in the near future.
I think it's time to get rid of tax cuts which will significantly reduce the strain on inflation. I personally have always been against tax cuts. There is a small minority of people who actually benefit a significant amount from them. Better to just pump them back into health, education, roads etc. |
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