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Mortgage war erupts as CBA, NAB, Westpac slash interest rates; CBA cuts 70bp from its five-year fixed mortgage rate to 4.99%
Topic Started: 23 Jul 2014, 01:45 PM (10,156 Views)
o2sd
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peter fraser
27 Jul 2014, 04:14 PM
I believe that you are now deliberately misinterpreting what I have said.
I am?
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I just don't have the time for that.

You don't have time for me doing something :?:
Sydneyite
27 Jul 2014, 04:43 PM
Re your other points, I see you are now contending that
I was always contending that, but I admit I was probably not explicit. I thought it was implied in the article, but I probably got that wrong.
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banks might profit if they shift existing variable rate customers to fixed rate loans, thus removing the possibility of them paying down principle faster as interest rate falls. I suppose this may have some validity to it - ie a fixed rate loans also "fixes" the banks profit over the term, whereas a variable rate loan profit is not fixed if principle is paid down faster than schedule.

Only for existing mortgages and not for new business, so I agree with your original post re: fixing both the funding rate and the new loan.

I could forsee a situation where both interest rates and credit growth are falling that could significantly affect profitability on existing mortgage books, but I am not an accountant, or a banker, so again, I probably have that wrong.
Edited by o2sd, 27 Jul 2014, 05:54 PM.
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Mallard
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Ex BP Golly
27 Jul 2014, 10:17 AM
Time frames?

One thing I've learnt is that I'm australia we really are different. With so much self interest riding on housing (so many pollies are up to their eyeballs in housing) we can stretch things out a very long way.

If we go zirp, or close to zirp, it will be the next 2 years is my best guess, which brings me to your other question.

If interest rates go up over the next few years, of course I will accept we are not going to zirp.

But as I have been saying we are heading to zirp for a couple of years, and saying rba has to drop interest rates further (but cant because housing infestors are dumb) I think I have a but of track record here.

And if you think lower interest rates are good, then you have no understanding if what is happening in our economy. There is a very good reason they are the lowest in a life time, and its got nothing to do with making you or infestors all trunkie.

Still, Id recommend you (and your bull mates) borrow acouple of more houses :to:
You seem to claim that ZIRP in Australia is as self evident as day following night and that anyone that can't see it is a fool.

And yet in the recent survey of economists nobody expected that to happen LinkLink

So either you have some information, expertise or insight that means you can see something that others can't in the Australian economy, or you are just plain wrong. My bet is on the latter. And if you are wrong about that, then you might well be wrong on everything else you say too.

This forum is full of outlandish claims that have no substantiation and make debate impossible.

Collecting desperation.
Ex-Bp Golly April 2 2015. "I see with a slight overshoot -70% [fall in Sydney house prices] as being well within possibility"
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Ex BP Golly
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Mallard
28 Jul 2014, 07:18 AM
You seem to claim that ZIRP in Australia is as self evident as day following night and that anyone that can't see it is a fool.

And yet in the recent survey of economists nobody expected that to happen LinkLink

So either you have some information, expertise or insight that means you can see something that others can't in the Australian economy, or you are just plain wrong. My bet is on the latter. And if you are wrong about that, then you might well be wrong on everything else you say too.

This forum is full of outlandish claims that have no substantiation and make debate impossible.
Not one economist said rates would go down, yet for the last three rba decisions I have said they must. (admit banks made move, but nevertheless rates went down and now ' economists' say they will go down further.

Bulls laughed at- all said up

I have been saying zirp for about 4 years, and the economy in my view is not moving away from that.

I laugh every time I hear ' economists' being "shocked", and their continual 'downward revision of expectations' splits my sides.

I don't think we will get all the way to zirp, but we should.

Other predictions I have made is that after the mining investment boom ended, our resources value would be smashed, and our finite resources would be raped .Timmy esp went hard at me over that :to: :to: :to:

Strawmaned it off into an argument about how we had huge reserves of resources, and away from my claims prices would tank.

I also stated we had done nothing but sink our boom time gains into housing, and as soon as the bom was over we would have nothing in the national coffers, and said at least some arab nations had set themselves up knowing their oil was running out.

Not Oi Oi Oi land!

Once again I was right.

The only material thing I have been wrong on is house prices keep rising.

I really can't get my head around that!

timing when self interest and delusion will come to an end has, I admit has been extremely difficult.


WHAT WOULD EDDIE DO? MAAAATE!
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peter fraser
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Mallard
28 Jul 2014, 07:18 AM
You seem to claim that ZIRP in Australia is as self evident as day following night and that anyone that can't see it is a fool.

And yet in the recent survey of economists nobody expected that to happen LinkLink

So either you have some information, expertise or insight that means you can see something that others can't in the Australian economy, or you are just plain wrong. My bet is on the latter. And if you are wrong about that, then you might well be wrong on everything else you say too.

This forum is full of outlandish claims that have no substantiation and make debate impossible.
I wouldn't rule out the possibility of lower rates.
Any expressed market opinion is my own and is not to be taken as financial advice
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Ex BP Golly
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Mallard
28 Jul 2014, 07:18 AM

This forum is full of outlandish claims that have no substantiation and make debate impossible.
This says a lot about you mallard the duck.
WHAT WOULD EDDIE DO? MAAAATE!
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Mallard
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peter fraser
28 Jul 2014, 09:37 AM
I wouldn't rule out the possibility of lower rates.
Nor would I but i don't see the RBA heading to zero, which is what's being discussed
Ex BP Golly
28 Jul 2014, 09:36 AM
A - I don't think we will get all the way to zirp, but we should.

B - Of course we are headed for zirp. You pretending otherwise is hilarious.
No point discussing anything when you don't know what you think
Edited by Mallard, 28 Jul 2014, 10:21 AM.
Collecting desperation.
Ex-Bp Golly April 2 2015. "I see with a slight overshoot -70% [fall in Sydney house prices] as being well within possibility"
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skamy
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K-town
27 Jul 2014, 12:46 PM
My reference for this is having variable loans on eight properties with six different lenders over 15 years. They have all worked that way by default.

You could research bank lenders variable products and see how many have offset accounts. Almost all.

Effectively. Not actually.
Edited by skamy, 28 Jul 2014, 10:33 AM.
Definition of a doom and gloomer from 1993
The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
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stinkbug
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Mallard
28 Jul 2014, 10:17 AM
Nor would I but i don't see the RBA heading to zero, which is what's being discussed.
I tend to agree. There's also the issue that reductions of 0.25% now represent a larger proportion of the overal interest rate. I don't think we'll see any changes to interest rates until probably Q2 next year now, and there's a chance the next move could down.
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While it's true that those who win never quit, and those who quit never win, those who never win and never quit are idiots.

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Ex BP Golly
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Mallard
28 Jul 2014, 10:17 AM

No point discussing anything when you don't know what you think
Being headed for zirp doesn't mean we will get there.....but over the few years I have been saying we are going there, which way are rates headed Mallard?

We need to go there to stimulate small business, but rba knows it only stimulates losers like you, who go further into debt binging on second hand, increasingly unmaintained and unproductive housing.

Btw, I note you didn't contest any of my prediction claims.

Do you want to? :to:





Edited by Ex BP Golly, 28 Jul 2014, 11:36 AM.
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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Mallard
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Ex BP Golly
28 Jul 2014, 11:32 AM
Being headed for zirp doesn't mean we will get there.....but over the few years I have been saying we are going there, which way are rates headed Mallard?

We need to go there to stimulate small business, but rba knows it only stimulates losers like you, who go further into debt binging on second hand, increasingly unmaintained and unproductive housing.

Btw, I note you didn't contest any of my prediction claims.

Do you want to? :to:




I didn't even look at your claims as you can't make your mind up on anything. Sounds like you just cherry pick the ones that you might have got right and ignore everything you get wrong.

Rates could go up or down from here. If they go down it won't be by much.

Tell me what you think the RBA will get down to at the low point of this cycle then
Collecting desperation.
Ex-Bp Golly April 2 2015. "I see with a slight overshoot -70% [fall in Sydney house prices] as being well within possibility"
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