Anything which can be done by a human today will be done by a machine in the future.
Wot, like luv, hate 'n fight 'n be racist 'n sexist 'n nationalistic 'n ageist 'n tribal 'n sometimes smart whilst just generally bein' stupid plus bein' afflicted by all sorts of personality disorders 'n strange dependencies 'n fetishes 'n phobias as well as grandiose delusions 'n outright mental illnesses - As well as squabblin' over bein' supreme 'n wot not do ya mean?
Hmmm - We can just continue ta look forward ta tha day I 'spose ...
The RBA doesn't choose when to raise or lower rates and by how much.
The RBA simply react to market forces (strength of the AUD being a major driver).
If you are saying that what happens in other significant economies is factored into the RBA monthly rate decision then I would agree, but you are implying that the RBA has to go lock step with the US Fed even if they don't want to, which is hogwash. The RBA is fully independent from our own government and certainly independent to other central banks, although they could decide to co-ordinate action if they considered that beneficial.
The movements taken by the RBA since that Fed increase was a DECREASE of 0.25% in May 2016 and another DECREASE of 0.25% in August 2016. http://www.rba.gov.au/statistics/cash-rate/
If your theory was correct we would be a full 0.75% above where we are right now, but we are not.
If you are saying that what happens in other significant economies is factored into the RBA monthly rate decision then I would agree, but you are implying that the RBA has to go lock step with the US Fed even if they don't want to, which is hogwash. The RBA is fully independent from our own government and certainly independent to other central banks, although they could decide to co-ordinate action if they considered that beneficial.
The movements taken by the RBA since that Fed increase was a DECREASE of 0.25% in May 2016 and another DECREASE of 0.25% in August 2016. http://www.rba.gov.au/statistics/cash-rate/
If your theory was correct we would be a full 0.75% above where we are right now, but we are not.
Your theory needs a serious overhaul jimbo.
It can't be Dec 2016....yet. Anyway, no, the interest rate differential does not have to "the same" over the short, medium, or the long term. It does have to exist in the form of a higher interest rate in Australia. The RBA's decisions are dependent on other central bank actions. Don't knock it. Without it, bank share prices would possibly be in the toilet and there would be less cash to throw at the suburbanites.
It can't be Dec 2016....yet. Anyway, no, the interest rate differential does not have to "the same" over the short, medium, or the long term. It does have to exist in the form of a higher interest rate in Australia. The RBA's decisions are dependent on other central bank actions. Don't knock it. Without it, bank share prices would possibly be in the toilet and there would be less cash to throw at the suburbanites.
Thanks, my typo error. Fixed now.
I am expecting the Fed to raise again in Dec 2016, but I'm not expecting the RBA to follow them anytime soon. You are making the same mistake that jimbo is making.
I am expecting the Fed to raise again in Dec 2016, but I'm not expecting the RBA to follow them anytime soon. You are making the same mistake that jimbo is making.
It's not an "expectation"; it's a "hunch" or a "guess." You don't have enough information to have an "expectation", nor are you an insider, so you're just sucking on whatever diatribe you subscribe to. Whatever the FR does will have "implications" for the RBA and every other central bank. Stating that the RBA will not follow the FR is not revelatory: it's largely meaningless.
If you are saying that what happens in other significant economies is factored into the RBA monthly rate decision then I would agree, but you are implying that the RBA has to go lock step with the US Fed even if they don't want to, which is hogwash.
I didn't say that the RBA have to go in lockstep with anybody.
But the RBA do have to follow what other CB's do (mainly the US Fed).
If there is too much of a differential, the AUD becomes either too strong or crashes and burns.
Like I said before, the RBA rate decisions are similar to your decisions on when and how much to use the aircon in your car.
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.
Right so you are back peddling. That didn't take too long.
Back peddling from what jizzrag?
I said originally "The RBA doesn't choose when to raise or lower rates and by how much. The RBA simply reacts to market forces (strength of the AUD being a major driver)."
How is that different from controlling the aircon in your car acccording to the ambient temperature?
Matthew
21 Nov 2016, 11:06 PM
Yes Dimshit, I watched I, Robot as well. But even in that futuristic robotic world the machines were still supervised by humans who wished to profit. Dimshit does not back peddle. He shoots off on meaningless tangents
They were not exactly "supervised by humans" in I Robot. Maybe you didn't quite understand the film?
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.
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