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The new age of speculation; Alan Kohler
Topic Started: 7 Oct 2013, 05:45 PM (699 Views)
herbie
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"Suppression of savers is the policy of the age.

It has long been true that the price of credit is imposed, not discovered, and by that means central banks manipulate demand for it. Normally central banks try to encourage prudence; the spirits to be restrained are the animal ones that lead to inflation and bubbles.

But now, with economic growth vexingly dismal, it’s the savers who must be restrained, or rather encouraged to spend and speculate. At 10 per cent, the savings rate is now too high to sustain an economy that relies for its growth on consumption and gambling."

etc ...

Including (for the bulls) : "The big mover in the “wisest place for savings” survey is real estate, up from 14 to 28 per cent."

http://www.businessspectator.com.au/article/2013/10/7/reserve-bank-australia/new-age-speculation?utm_source=exact&utm_medium=email&utm_content=446280&utm_campaign=kgb&modapt=

Edited by herbie, 7 Oct 2013, 05:48 PM.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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stinkbug
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Saving has always been a waste of time. When interest rates are high, inflation eats your savings, when inflation is low you get SFA return.

At least with property you get regular yield, long term capital growth and often a clear upgrade path.
---------------------------------------------------------------

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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herbie
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stinkbug
7 Oct 2013, 06:03 PM
Saving has always been a waste of time. When interest rates are high, inflation eats your savings, when inflation is low you get SFA return.

At least with property you get regular yield, long term capital growth and often a clear upgrade path.
Most respectfully Stinkbug, all I can say is "Twaddle!" - Jeez my savings have been killing the pig compared to my housing investments over the last five years.

Could be about ta change of course - Just wish I knew WHICH way? :re:
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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stinkbug
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herbie
7 Oct 2013, 06:25 PM
Most respectfully Stinkbug, all I can say is "Twaddle!" - Jeez my savings have been killing the pig compared to my housing investments over the last five years.

Could be about ta change of course - Just wish I knew WHICH way? :re:
Perhaps it would be more accurate if I said that savings are not investments, they're just funds you've put aside.

Investments carry real risk, don't return linearly, and generally do better in the longer term.
---------------------------------------------------------------

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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Billy Jack
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The Duke of Brisbane Town

stinkbug
7 Oct 2013, 06:03 PM
Saving has always been a waste of time. When interest rates are high, inflation eats your savings, when inflation is low you get SFA return.

At least with property you get regular yield, long term capital growth and often a clear upgrade path.
Friend, you are right, because this has been the White Shoe Guru Mantra for years, decades even.

But the problem is that even the Bogans and Short Sleeve "Professionals" don't believe that these days.

What's your view on annuities btw?

:pop:
Tell Billy Jack the Truth
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stinkbug
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Billy Jack
7 Oct 2013, 07:49 PM

What's your view on annuities btw?

:pop:
Annuities are an interesting one. For people without the skills and experience to invest successfully, they're probably a great idea. I'd like to think I can do a little better, though, by building up a decent asset base during my working life that generates more than enough yield in an 'average' year to support my living expenses, and plan to spend about 90% of the yield each year, using the difference to build a cash buffer and/or pay down any residual debt.

What about you? You thoughts on annuities?
---------------------------------------------------------------

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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Billy Jack
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The Duke of Brisbane Town

stinkbug
7 Oct 2013, 08:31 PM
Annuities are an interesting one. For people without the skills and experience to invest successfully, they're probably a great idea. I'd like to think I can do a little better, though, by building up a decent asset base during my working life that generates more than enough yield in an 'average' year to support my living expenses, and plan to spend about 90% of the yield each year, using the difference to build a cash buffer and/or pay down any residual debt.

What about you? You thoughts on annuities?
I think good ****ing luck in this day and age, what with people having no children.

Annuities = legalized Bernie Madoff scheme.
Tell Billy Jack the Truth
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