Unlike a speculator, my money is guaranteed. I contract in the retail banking industry. I'm getting inflated rates because the banks are making inflated profits from speculators paying inflated prices for property.
I'm getting inflated rates because the banks are making inflated profits from speculators paying inflated prices for property.
Feel free to kid yourself but that is absolute, utter nonsense. The performance of the property market has no direct link to your contract rates. Your employer does not say, "Sydney housing did well in August, let's give Frum an increase." The supply of similarly experienced and skilled contractors that you compete against is far more relevant.
The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt — Bertrand Russell
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
Bullshit. Don't try and dismiss a fact just because some obscure exceptions to the rule. Average Australians never had access to IO loans prior to the last leg of the housing bubble here in Australia. Before deregulation banks were a lot more prudent. Here is what other coutries think of them.
You are wrong. You said IO loans weren't even available 15 years ago (ie 1999). I had one as a 20-something schmuck in 1995, and it was a LOC facility no less even!
Regardless of your incorrect memory of timeframes, we had this thing called financial de-regulation in the late 80s that you mentioned - it caused things to change, for the better, for oridinary people in terms of access to credit. Banks were not more "prudent" before then, they were forced by over-regulation to ration credit: And the result was a psuedo-class based system where wealthy and asset rich MEN (see next point) got nearly all the available credit, and ordinary people had to go cap-in-hand and beg the bank manager for a loan to buy a house. Banks were allowed to discriminate against women - by refusing to lend to single women who wanted to buy house, no matter what their income and savings, and also by not counting the female partners income when determining loan servicibility for a couple. And so on and on. The "good old days" basically sucked when it came to banking and personal finance in Oz.
You are wrong. You said IO loans weren't even available 15 years ago (ie 1999). I had one as a 20-something schmuck in 1995, and it was a LOC facility no less even!
Regardless of your incorrect memory of timeframes, we had this thing called financial de-regulation in the late 80s - it caused things to change, for the better, for oridinary people in terms of access to credit. Banks were not more "prudent" before then, they were forced by over-regulation to ration credit: And the result was a psuedo-class based system where wealthy and asset rich MEN (see next point) got nearly all the available credit, and ordinary people had to go cap-in-hand and beg the bank manager for a loan to buy a house. Banks were allowed to discriminate against women - by refusing to lend to single women who wanted to buy house, no matter what their income and savings, and also by not counting the female partners income when determining loan servicibility for a couple. And so on and on. The "good old days" basically sucked when it came to banking and personal finance in Oz.
Hilarious.
Bank deregulation was designed to help the little guy.
Got any more?
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
Straight out of the property seminar spruke book. And you still believe it, after 7 years of near fuckall capital gains and years of falling rents in many capital cities. Amazing. And when all the speculators default? Well the mortgages are now in the hands of the public via bank bonds, aka residential backed mortgage securities.
" Sorry sir but we are forced to forclose on your home. And by the way, your superannuation provider owns it now amd even though it has crashed in value you are still liable to them for the balance of the original purchase price. Have a nice day sir"
That's when you and I bail the banks out, have you not been listening to the world events over the last 10 years??? Or are you just thick??? Peter
You are wrong. You said IO loans weren't even available 15 years ago (ie 1999). I had one as a 20-something schmuck in 1995, and it was a LOC facility no less even!
Regardless of your incorrect memory of timeframes, we had this thing called financial de-regulation in the late 80s - it caused things to change, for the better, for oridinary people in terms of access to credit. Banks were not more "prudent" before then, they were forced by over-regulation to ration credit: And the result was a psuedo-class based system where wealthy and asset rich MEN (see next point) got nearly all the available credit, and ordinary people had to go cap-in-hand and beg the bank manager for a loan to buy a house. Banks were allowed to discriminate against women - by refusing to lend to single women who wanted to buy house, no matter what their income and savings, and also by not counting the female partners income when determining loan servicibility for a couple. And so on and on. The "good old days" basically sucked when it came to banking and personal finance in Oz.
Hilarious.
Bank deregulation was designed to help the little guy.
Got any more?
Wow.... so bank profits increased, after a recession too - and that's bad is it in your socialist mind-set??? All profit is theft from the "workers" or something is it?? What happenned to wages over that same period - did they go up at a rate far greater than inflation for 15 years perhaps as well? What happenned to the average wealth of Australian households? Oh that went up massively as well! Did the economy grow over that time maybe as well?
PS: You know it was Labor who implemented all this de-regulation right?
For Aussie property bears, "denial", is not just a long river in North Africa.....
Wow.... so bank profits increased, after a recession too - and that's bad is it in your socialist mind-set??? All profit is theft from the "workers" or something is it?? What happenned to wages over that same period - did they go up at a rate far greater than inflation for 15 years perhaps as well? What happenned to the average wealth of Australian households? Oh that went up massively as well! Did the economy grow over that time maybe as well?
PS: You know it was Labor who implemented all this de-regulation right?
Listen pal, I haven't got time to give you a history of the causes of the financial crisis.
But arguing that financial deregulation was an unmitigated good designed to help the little people is nonsense.
Ask the Irish. Ask the Spanish. Ask the Americans.
What has happened since deregulation is that housing has got more expensive, household debt is much higher, and bank profits are much larger.
Banks love lending mortgages. Its a super business model because housing is an essential good. The more expensive housing gets the better for them.
Best of all the whole racket is backstopped by Government guarantee virtually.
Australian banks are the most profitable in the world. And what is the stand out feature of Australian banks? The fact that nearly 70% of their lending now is to mortgage holders. Cool system hey?
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
Wow.... so bank profits increased, after a recession too - and that's bad is it in your socialist mind-set??? All profit is theft from the "workers" or something is it?? What happenned to wages over that same period - did they go up at a rate far greater than inflation for 15 years perhaps as well? What happenned to the average wealth of Australian households? Oh that went up massively as well! Did the economy grow over that time maybe as well?
PS: You know it was Labor who implemented all this de-regulation right?
Listen pal, I haven't got time to give you a history of the causes of the financial crisis.
But arguing that financial deregulation was an unmitigated good designed to help the little people is nonsense.
Ask the Irish. Ask the Spanish. Ask the Americans.
What has happened since deregulation is that housing has got more expensive, household debt is much higher, and bank profits are much larger.
Banks love lending mortgages. Its a super business model because housing is an essential good. The more expensive housing gets the better for them.
Best of all the whole racket is backstopped by Government guarantee virtually.
There are none so blind...
Why would I ask the Irish Spanish or Americans etc? I'm talking about what hapenned in AUSTRALIA, pal! You know, the place where we didn't actually have a GFC, or a house price crash, severe recession etc etc. Maybe we actualyl did something right, that has been for the benefit of everyone? The actual evidence, vs your ranting, certainly show's this was the case!
PS - would you unwind all the financial system de-regulation undertaken during the 80s and 90s if you could? Put us back to where we were in the 70s?
Why would I ask the Irish Spanish or Americans etc? I'm talking about what hapenned in AUSTRALIA, pal! You know, the place where we didn't actually have a GFC, or a house price crash, severe recession etc etc. Maybe we actualyl did something right, that has been for the benefit of everyone? The actual evidence, vs your ranting, certainly show's this was the case!
Maybe, the Federal Government did everything its power by pulling monetary and fiscal levers to stop the housing market toppling over helped by the largest stimulus package in the history of the world in China. ( oh wait, that's what did happen)
This looks just swell to me. Our banking overlords have our interests at heart.
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
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