The RBA was keen to try and show the tail can not wag the dog so their reluctance to let banks force their hand is understandable... none the less, another cut is quite likely if the economy does not show some strength before christmas... in particular as the remaining banks add themselves to the line of rate rises.
I am no fan of rates this low, or lower, however, in a suprise move, but the tail has a firm grip on the dog and is shaking it down and certainly not letting go.
I'm not sure what the problem is here.
The banks are raising mortgage rates out of lock-step with the official cash rate because of increased pressure from APRA to shore up their capital buffers. This is having the effect of cooling the housing market.
The RBA can now cut feeling much more certain that the extra borrowing it encourages will be directed at stuff more likely to drive long term economic growth - business investmemt, jobs, etc etc.
This is the 'macroprudential' behaviour that the bears have been banging on about for the last few years. Why are many of them now complaining about it?
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness. "Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
The banks are raising mortgage rates out of lock-step with the official cash rate because of increased pressure from APRA to shore up their capital buffers. This is having the effect of cooling the housing market.
The RBA can now cut feeling much more certain that the extra borrowing it encourages will be directed at stuff more likely to drive long term economic growth - business investmemt, jobs, etc etc.
This is the 'macroprudential' behaviour that the bears have been banging on about for the last few years. Why are many of them now complaining about it?
We have had macropru for years John. Not sure why DLS and the MB crew have so vigorously denied that. The recent changes have only affected investors, and not all investors. It's the out of cycle rate rises that have cooled the market although it was always going to cool as it reached it's upper limits of affordability.
I don't see an issue either, it's just a short period of adjustment in the market.
Any expressed market opinion is my own and is not to be taken as financial advice
This is the 'macroprudential' behaviour that the bears have been banging on about for the last few years. Why are many of them now complaining about it?
Macro pru doesn't and can't crash housing markets. Macro pru is fine tuning that can be turned on an off at will.
But fine tuning doesn't work when the underlying electronics is totally fucked.
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.
As smeone with a long history here of adding nothing and simply attacking others, it's rather hypocritical of you to even join in a thread like this.
The only thing you get right is that housing prices will go up. Every other call has been wrong, from the decline of China, the trashing of iron ore, and interest rate movements.
The only reason your position on house prices has been right is because a huge number of people like you are irrationally exuberant.
The only person I have ever 'attacked' is Shadow. I know that upsets you greatly.
That makes me happy.
WHAT WOULD EDDIE DO? MAAAATE! Share a cot with Milton?
I've already posted two you pillock! Are you deliberately being dense or does it just come naturally?
Quote:
Based on the heat in your posts here, I'm guessing you've tuned up your crystal ball recently?
I'm not what that means.
Quote:
How's our crash coming along?
Already in motion in some parts of the country. I expect Sydney (lesser extent Melbourne) will keep rising as the RBA keeps cutting, pushing the peasants out to the periphery and filling the skyline with cranes.
“Talk sense to a fool and he calls you foolish.” - Euripides
The only person I have ever 'attacked' is Shadow. I know that upsets you greatly.
Liar.
Want me to start posting links to prove it?
Loki
4 Nov 2015, 10:19 AM
Already in motion in some parts of the country. I expect Sydney (lesser extent Melbourne) will keep rising as the RBA keeps cutting, pushing the peasants out to the periphery and filling the skyline with cranes.
You are delusional. Excluding remote mining towns, there is now crash. Some places have markets softening and falling a bit, some are steady, some are on the rise.
A crash is when a market falls rapidly and significantly. Personally, I'd consider a fall of 15% or more a crash. No doubt others will have varying definitions. What's yours?
Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.
Forum Rules:
The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.
Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.
Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.
This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.
Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ
Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy