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RBA looks to tighten screws on home loans
Topic Started: 24 Sep 2014, 01:20 PM (3,601 Views)
peter fraser
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Lef-tee
25 Sep 2014, 07:29 AM
Perhaps they've concluded that they will need the room to use the last few scraps of monetary pricing power they have left as an economic counter-stabilizer without simply fueling further property speculation.
Yes possibly. If the RBA would like to reduce rates further and are worried that they will stoke the fire then it would be a very sensible move to target MP that encourages FTB's and makes it harder for investors. I can buy that.
Any expressed market opinion is my own and is not to be taken as financial advice
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GloomBoomDoom
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Housing investor activity excessive: RBA

http://www.news.com.au/national/breaking-news/housing-investor-activity-excessive-rba/story-e6frfku9-1227077408303
MSE
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Dr Watson
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GloomBoomDoom
2 Oct 2014, 10:50 AM
Thanks for a good belly laugh.

So the RBA cuts interest rates to get cash out of bank accounts and into housing and then wags the finger at the public when we do what they forced us to.

Actually, these regular 'warnings' from the RBA are really a bit of arse-covering in the event of a black swan — 'we tried to warn you, we said it could happen'. The RBA doesn't really mean them. It wouldn't surprise me if Glenn Stevens has created a recurring reminder in his Outlook calender to issue them. Reminder: 'WARN ON HOUSE PRICES' — repeat monthly [no end date].
Edited by Dr Watson, 2 Oct 2014, 11:26 AM.
The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt — Bertrand Russell
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b_b
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Dr Watson
2 Oct 2014, 11:25 AM
Thanks for a good belly laugh.

So the RBA cuts interest rates to get cash out of bank accounts and into housing and then wags the finger at the public when we do what they forced us to.

Actually, these regular 'warnings' from the RBA are really a bit of arse-covering in the event of a black swan — 'we tried to warn you, we said it could happen'. The RBA doesn't really mean them. It wouldn't surprise me if Glenn Stevens has created a recurring reminder in his Outlook calender to issue them. Reminder: 'WARN ON HOUSE PRICES' — repeat monthly [no end date].
Agree.

It's almost as though they do not understand how their machine works.

The only way low interest rates work is to encourage credit-deposit creation. Low interest rates without credit expansion is a damp squid - just ask the Japanese and Europeans.

Yet another reason why those who advocate "macroprudential" really do not understand how the financial system works.
Edited by b_b, 2 Oct 2014, 11:31 AM.
(S – I) + (T - G) + (M - X) = 0
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Foxy
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Zero is coming...

I really think supply and demand will run it's course.

People will learn that investment houses do not have a net return to the owners.

I said net.

And to the owners.

But what does??

Peter
http://www.afr.com/content/dam/images/g/n/2/1/u/8/image.imgtype.afrArticleInline.620x0.png/1456285515560.png
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Jimbo
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b_b
2 Oct 2014, 11:29 AM
The only way low interest rates work is to encourage credit-deposit creation. Low interest rates without credit expansion is a damp squid - just ask the Japanese and Europeans.

All squid are damp. They live in the sea!
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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b_b
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Jimbo
2 Oct 2014, 11:40 AM
All squid are damp. They live in the sea!
Not the fried squid with heaven facing chilli salt at Spice Temple.
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Edited by b_b, 2 Oct 2014, 11:50 AM.
(S – I) + (T - G) + (M - X) = 0
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Elastic
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While Glenn is complaining about housing credit growth, he hasn't noticed the large red lever on his office wall with a flashing neon sign above it "Housing credit growth".
Only a rat can win a rat race.

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Ex BP Golly
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Dr Watson
2 Oct 2014, 11:25 AM
Thanks for a good belly laugh.

So the RBA cuts interest rates to get cash out of bank accounts and into housing and then wags the finger at the public when we do what they forced us to.

Actually, these regular 'warnings' from the RBA are really a bit of arse-covering in the event of a black swan — 'we tried to warn you, we said it could happen'. The RBA doesn't really mean them. It wouldn't surprise me if Glenn Stevens has created a recurring reminder in his Outlook calender to issue them. Reminder: 'WARN ON HOUSE PRICES' — repeat monthly [no end date].
"The system made me do it!".

Bellylaugh +1.
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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Dr Watson
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The RBA will be pleased to see dwelling approvals rising. This is the much desired supply-side response arriving.

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Edited by Dr Watson, 2 Oct 2014, 01:35 PM.
The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt — Bertrand Russell
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