Ratescut by 1% or 100 basis points

Panic Stations everyone....the "henny pennys" are out and about :p. If your fighting for whatever it maybe and all you think is negative and doom and gloom, one may as well turn up their heels. The negative media and comments across the board does not help in a potential crisis, some thrive on it though ie the "henny pennys". Sure things may get a bit tougher, in fact they have been tough for many for the whole year, if everyone runs around with flailing arms it can be contagious and it is not the whole reason but in part with some of what we are seeing. If you tell a child it is useless enough times...guess what it loses confidence. If you keep telling the nation that all is doom and gloom, as has the media for so long now, it starts to get entrenched.

We have had an interest rate cut...THIS IS GOOD.....my equipment finance rates with some lenders have dropped by a whole %....THIS IS GOOD.....there could be further interest rate cuts which should start to stimulate the economy as people will start to see a light at the end of the tunnel.....THIS IS GOOD....Ok...the "henny penny's" turn :D,

Regards

Stevo

i agree mate, its good. :cool:

still i can't afford to discount the 'henny pennys'

its a risk either way, but i stand to loose more if they are right so one would think i should prepare myself for that and if it never eventuates think of it as a bonus/close call/what ever...

of course i could discount them as the chance is not THAT great of a global depression, however if it happened i would be totally screwed.

what do you think about that sir? ;)

Thats a eyeopener of a video.:eek:

Quote:

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i agree mate, its good. :cool:

still i can't afford to discount the 'henny pennys'

its a risk either way, but i stand to loose more if they are right so one would think i should prepare myself for that and if it never eventuates think of it as a bonus/close call/what ever...

of course i could discount them as the chance is not THAT great of a global depression, however if it happened i would be totally screwed.

what do you think about that sir? ;)

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Look I agree, you cannot discount the "henny pennys" but one still has to remain objective. Just as people can be caught up with a positive vibe....they tend to be more easily led with a negative vibe. How often when asking how someone is, do you hear in response " Not bad".

I also believe prevention is better than the cure and you have to look at where you are, what you have at risk and what measures to take............but that should be through all economic situations. IMO I think despite what is happening globally, Australia is weathering pretty well. For sure if you have $000,s or $millions tied up in the stock market, then a very rough ride is ahead. The "henny penny's will lose their cool, the objective ones will ride it out...........just as in the past.

Regards

Stevo

Doom and Gloom...pah

Just bought my first place ( in Australia ), I know I paid well below what they were asking ( by 55k ), and my offer of that 55k less was also below what someone else had offered ( they had offered exact asking price but needed to offload another property before they could settle, I could settle immediately ), so I'm charging ahead, it's up on the Northern beaches and as they are not making any more land up there the prices are pretty solid, luckily enough I have equity in it from the moment I get the keys, the .8% has taken my interest rate to just over 6.5% so pretty happy really...

I say carry on as normal if you can...keep buying toys, the economy needs you!

Stevo,

Could not agree more. ;)

The sky is not falling. There are a few clouds, but Australia's economy is not going to collapse in a burning heap.
House prices at least in Qld, specifically SEQ are not going to go down anywhere near 40%. If they do, I will walk backwards to Stevos, in the buff, with a feather duster up my clacker. :eek:

As a mortgage broker, and previous student of economics, I hope I know a little about the market and hopefully a bit about the economy. Some may think I have a vested interest.
People make money in good times and bad. People are smart with money, some aren't. Debt is like fire, it can be a great slave or a horrible master.

House prices have been flat, or receding, in the southern states, particularly Syd,Melb and inner city, they have gone backwards - slightly. But they were overpriced, had too much growth too quickly, and this is the result.
WA is crazy, due to the resources boom, this will correct, but it is totally different.
SEQ is different to most markets. There is a massive housing shortage, ridiculous population growth, and prices have settled over the last 12 mths.

The rate cut was large, but necessary. It says as much about the way the RBA gave death of 1000 cuts, and ineffective, increase of rates 0.25% each time, as it does about the world situation.

Super is in the toilet and those with equities probably lost on average 10-15% over the last 12mths. But they probably made 10-15% every year for the last 10. A loss is never good, and particularly not if your near retirement.
But ....markets fluctuate. That means they go up....and they go down....
The volatility at the moment means it happens over a shorter period of time, and that worries people - but this will settle as well.

Most of the effects, for Australia, in terms of funding costs, policy tightening and banks hitting the wall has already been felt.

The economy is cyclical, this means inflation at some stage will rise, so will unemployment.

Make yourself un-unemployable, work smarter and harder, look at your own situation, and what you have control over -and do something about them if your concerned. BUT keep smiling...this will pass, you're still breathing and the sun will come up tomorrow

Unless those atom smashers in Europe, make things go bang -but the Henny Pennys are probably already sweating over that. :p

You would think that if a bank or finance company collapsed and you had a loan of somekind with them, you would essentially have no one to pay back the money you borrowed wouldn't you!!! :p

stevo, fenianeel

:D

I personally have always had the sort of prepare for the worst, hope for the best train of thought.

must be in my nature i 'spose.

I agree things are definitely cyclical and the sky is definitely not falling.

I just hope this will be enough to make enough people realize that sustainability is the answer not continuous growth.

You can only have one or the other and one lives a lot longer.

good to see your both being so positive about things its very refreshing :)

fenianeel, i hope i don't have to call you on that bet! :lol2:

rayngie, congrants on the place man. sounds like a ripper deal. now i just have to get something like that sussed for the place i want to buy and i will be sorted lol.

Blurry

I watched the movie - finally in simple terms someone has explained to me "why" and how there is essentially continuous growth of financial markets. It seemed illogical that we aim for example 2-4% positive growth p.a. - surely exponential growth cannot be sustainable... now I can see where this stems from. Thank you.

The movie also gives a very subtle indication as to the great importance of the US fed bail out of the failing debt market...

anyways - S

I assume the australian economy is as in that video also.

I just look at everything around me differently now, like everything around me is bought by a debts that we have to have. Whats scarier, is that we cant operate without it and nobody will ever be able to pay it off.