It’s nobody’s fault. It’s everyone’s fault. But the critical point here is that Reserve Bank governor Philip Lowe doesn’t get stuck with the blame for ruining everything because that’s what’s best for Philip Lowe. The Guv probably could’ve saved himself his week of grief by not spraying around promises that interest rates wouldn’t rise again until sometime on the far side of the never-never. But he did and will likely join Alan Tudge on the exciting frontiers of the job market because of it. And because someone needs to carry the blame. There are millions of people already doing it tough, and millions more about to experience a hefty kick to the ‘nads, financially speaking, when they come off their fixed-rate mortgages in the next few months.
Been watching Cunk on Earth.. analogous to how people carried their luggage until 1970's when some bright spark put wheels on a suitcase! Yet the wheel was invented 000's of years earlier - crazy right!?!?
Getting onto the "property ladder" is no more that signing up for a lifetime of servitude to the money lenders. The banks are making grotesque profit from ordinary peolple in the upwards transfer of wealth. Soon the banks will own everything if they don't already. Re-nationalise the banks and put a lid on this.
I never did get economics, but I wasn't too bad at statistics. We have 40 years of data showing that the economy isn't working for anyone but the rich. You'd think a Labor government might get that, but they're too terrified of doing anything that Mr Potatohead can attack them on regarding taxes and welfare that we (almost) may have well voted the last bunch of grifters back in.
You've cited Menzies post-war housing policies as kicking the problem off, and they might well have been a significant factor, but when you look over the horizon, you'll see that essentially the same housing bubble/inflation/crisis is happening almost everywhere in the world. Often worse in places where the Menzies government was not in charge. So there are almost certainly other factors at work too.
(The magic-market economic thought bubble was a mind-virus that traveled globally.)
I have no life so accordingly I have watched the Guv give evidence/opinion at two parliamentary grillings.
What is very apparent is that apart from only having the interest rate lever to pull, the Guv and the board are completely impotent.
I have a suggestion for the Guv and the government, get together, talk (even about interest rates) heaven forbid ! and come forward with a plan that does not just punish a section of the community.
It might include raising some taxes for the wealthy, to stop them fuelling inflation with luxury purchases and flooding the market with covid money, you know the $500 billion the clowns shovelled out the door..it’s time for some lateral thinking, so let’s be brave and give it a go, because what we are doing now just isn’t working..
Well said, JB. Just wondering what the percentage of folks "doing it tough" (what a bl**dy sick piece of verbiage) have multiple negatively-geared properties - thinking that were they to be forced to let them go - what might ensue could be a further "easing" of house prices and more chances for all those otherwise forced into "free-market rules"-renting - able to buy! I am with you on the right-wing media-led attacks on Philip LOWE - as he pointed out - he is one - on a board of nine.
The reason they leave the 'big four' alone is because of derivatives trading (the same trading that caused the GFC) it shoud be banned. The thing you sign to get a loan is not a mortgage but a promise to pay that the banks put together in tranches depending on assessed risk and sell them into the derivatives market so all the overseas investors own your 'mortgage' There are now trillions of dollars in home loans out in that market and Lowe is too scared to tamper with it in case it starts another collapse like the GFC. We are all fucked because of the banking system and failure to act on the royal commission recommendations including fines for executive greed.
I think the big change that caused a lot of the current problems has been easier access to credit. Working class people could suddenly borrow large amounts at low interest and have been enslaved ever since. No tradesperson with a million dollars debt ever wants to go on strike for pay and conditions and that's why wages have stagnated. If you were highly indebted 20 years ago then there is a good chance that you're reasonably wealthy now but there are a lot of young people now who are too late for the party. People seem to forget that to service a million dollar mortgage at 10% is a hundred grand a year interest. That's an after tax 100 grand as well. It's probably 160 grand before tax.
I think they probably knew ahead of time that printing lots of cash via quantitative easing (which sounds like a sexual practice), and also giving wads away, was going to cause inflation. Much like Weimar Germany. They did it anyway, without enough controls, to keep the place going. They just didn't mention it for fear of scaring the horses. We are now paying for the Covid largess. I'm not surprised at all.
Probably didn't help that the same week Lowe announced more interest rate hikes and 'you mugs need to accept it' that the Commonwealth Bank (nothing Common Wealth about it) reported profits of billions- BILLIONS!!!
I find it particularly outrageous that Lowe can simply say:
A. We need to put bank profits before ordinary people. We need to keep the bank shareholders happier than anyone else, and fuck all of you with a racings account or term deposit, it's the banks money, not yours.
B: the Mia Culpa...it wasn't just me there are 8 of us on the board. Sounds like a Nuremb
It's times like this that Emperor Capitalism's new clothes are instantly atomised, and its ugly junk exposed for all to see (and this phenomenon goes down the chain to expose the whole of the Emperor's court) ...just re read this. It's accurate but waaay to flowery-- but you get the gist.
Never heard the Super idea before-I like it!
PS: Well done JB you, managed to get me to understand the economic stuff in closer detail than I usually do.
The superannuation thingy is genius!
Been watching Cunk on Earth.. analogous to how people carried their luggage until 1970's when some bright spark put wheels on a suitcase! Yet the wheel was invented 000's of years earlier - crazy right!?!?
Getting onto the "property ladder" is no more that signing up for a lifetime of servitude to the money lenders. The banks are making grotesque profit from ordinary peolple in the upwards transfer of wealth. Soon the banks will own everything if they don't already. Re-nationalise the banks and put a lid on this.
I never did get economics, but I wasn't too bad at statistics. We have 40 years of data showing that the economy isn't working for anyone but the rich. You'd think a Labor government might get that, but they're too terrified of doing anything that Mr Potatohead can attack them on regarding taxes and welfare that we (almost) may have well voted the last bunch of grifters back in.
You've cited Menzies post-war housing policies as kicking the problem off, and they might well have been a significant factor, but when you look over the horizon, you'll see that essentially the same housing bubble/inflation/crisis is happening almost everywhere in the world. Often worse in places where the Menzies government was not in charge. So there are almost certainly other factors at work too.
(The magic-market economic thought bubble was a mind-virus that traveled globally.)
I have no life so accordingly I have watched the Guv give evidence/opinion at two parliamentary grillings.
What is very apparent is that apart from only having the interest rate lever to pull, the Guv and the board are completely impotent.
I have a suggestion for the Guv and the government, get together, talk (even about interest rates) heaven forbid ! and come forward with a plan that does not just punish a section of the community.
It might include raising some taxes for the wealthy, to stop them fuelling inflation with luxury purchases and flooding the market with covid money, you know the $500 billion the clowns shovelled out the door..it’s time for some lateral thinking, so let’s be brave and give it a go, because what we are doing now just isn’t working..
Well said, JB. Just wondering what the percentage of folks "doing it tough" (what a bl**dy sick piece of verbiage) have multiple negatively-geared properties - thinking that were they to be forced to let them go - what might ensue could be a further "easing" of house prices and more chances for all those otherwise forced into "free-market rules"-renting - able to buy! I am with you on the right-wing media-led attacks on Philip LOWE - as he pointed out - he is one - on a board of nine.
The reason they leave the 'big four' alone is because of derivatives trading (the same trading that caused the GFC) it shoud be banned. The thing you sign to get a loan is not a mortgage but a promise to pay that the banks put together in tranches depending on assessed risk and sell them into the derivatives market so all the overseas investors own your 'mortgage' There are now trillions of dollars in home loans out in that market and Lowe is too scared to tamper with it in case it starts another collapse like the GFC. We are all fucked because of the banking system and failure to act on the royal commission recommendations including fines for executive greed.
I think the big change that caused a lot of the current problems has been easier access to credit. Working class people could suddenly borrow large amounts at low interest and have been enslaved ever since. No tradesperson with a million dollars debt ever wants to go on strike for pay and conditions and that's why wages have stagnated. If you were highly indebted 20 years ago then there is a good chance that you're reasonably wealthy now but there are a lot of young people now who are too late for the party. People seem to forget that to service a million dollar mortgage at 10% is a hundred grand a year interest. That's an after tax 100 grand as well. It's probably 160 grand before tax.
I think they probably knew ahead of time that printing lots of cash via quantitative easing (which sounds like a sexual practice), and also giving wads away, was going to cause inflation. Much like Weimar Germany. They did it anyway, without enough controls, to keep the place going. They just didn't mention it for fear of scaring the horses. We are now paying for the Covid largess. I'm not surprised at all.
Probably didn't help that the same week Lowe announced more interest rate hikes and 'you mugs need to accept it' that the Commonwealth Bank (nothing Common Wealth about it) reported profits of billions- BILLIONS!!!
Nuremberg defence to me.
C: sack me if you like. I'm off to the Caymans anyway.
I find it particularly outrageous that Lowe can simply say:
A. We need to put bank profits before ordinary people. We need to keep the bank shareholders happier than anyone else, and fuck all of you with a racings account or term deposit, it's the banks money, not yours.
B: the Mia Culpa...it wasn't just me there are 8 of us on the board. Sounds like a Nuremb
You'll love this - the inflation is being largely driven by CORPORATE GOUGING: https://www.theguardian.com/business/2023/feb/24/an-economic-fairytale-australias-inflation-being-driven-by-company-profits-and-not-wages-analysis-finds
Yes, dirty deeds, done dirt cheap.
It's times like this that Emperor Capitalism's new clothes are instantly atomised, and its ugly junk exposed for all to see (and this phenomenon goes down the chain to expose the whole of the Emperor's court) ...just re read this. It's accurate but waaay to flowery-- but you get the gist.
Never heard the Super idea before-I like it!
PS: Well done JB you, managed to get me to understand the economic stuff in closer detail than I usually do.