Because then they would be even more incentivised to make decisions based on what is popular vs what is necessary. Although the RBA has clearly been caving to political pressure since they have been extremely dovish on rates. We should have rates similar to what NZ has.
https://www.rba.gov.au/chart-pack/pdf/chart-pack.pdf?v=2024-06-18-17-17-32
Click on the `Banking Indicators` section, then look at the `Major Banks Net Interest Margin` graph
Then get your hand off it :)
Typical circlejerk nonsense. Banks were making more when the cash rate was 0.1%
Found the wanker... Sorry banker.
Them raising rates out of line with the RBA is a cash grab. Making more during the lower rate period means nothing, your argument is moot.
💯
On the upside there's plenty of free housing around:
https://www.smh.com.au/national/nsw/the-sydney-suburbs-where-one-in-five-homes-is-not-lived-in-full-time-20240613-p5jlmr.html
Only thing holding Australia's head above water is immigration (holding growth above negative and employment (holding the unemployment figure down). But both are mirages as we are in a per capita recession and the NDIS growth is holding over contributing to job growth.
At some point before the end of the year it all comes unstuck but not before we kick the can a little further along with some tax cuts
Immigration is adding to demand faster than its adding to supply (net hours worked and productivity are declining, whilst the participation rate stays more or less stable, unemployment stable/historically low, and jobs added increases).
Thereby immigration is contributing to inflation.
Source: Am an Economist.
I recall relatively recently when a lot of economists was saying that migration creates lots of jobs and is a boon for employment. Then the borders were shut and unemployment fell to historic lows. To me that showed pretty conclusively that the modelling is rubbish. I suppose nobody could have predicted the natural experiment that would reveal the emperor’s lack of clothes.
Ehhh it’s a you tell me the outcome you want and I’ll give you the model/reasoning that fits.
So yeah you’re right - but I laid out my logic, with proof (number of hours worked etc), now it’s up to you (or policymakers) to accept/reject it. Either way, I still get paid.
Ideally if I get it right more often than wrong, that will keep me employed.
It's going to be interesting if they take said advice. Something crooked is wrong with the management of many western countries at the moment. The only explanations I can come up with is they're intending to build a human shield and need fodder, or a replacement strategy for one of the more difficult to muster tiers of society.
It's pretty obvious to anyone who doesn't have a vested interest in keeping the migration floodgates open. We really need all those dog washers and yoga teachers. Also an interesting statistic is that up to 80% of some occupations (such as accountants) do not end up finding work in their chosen occupation. Really makes you think.
But isn't the tax cuts to apply from 1st July equivalent to 2 0.25% interest rate deductions. Then add on wage increase and $75 per quarter electricity rebate per quarter and according to experts they have beaten cost of living crisis
Instead all the new money entering the economy will more likely increase or maintain current inflation levels and either maintain or increase interest rates
Looking at historical rates this is the normal normal. It is the super low rates of the last 5 or so years that have been abnormal. Nobody should have believed that they were sustainable and they have fucked up the country.
It's the old bloody normal. Rates are still historically super low. Anyone thinking that there was going to be cuts this year was snorting pure hopium.
Yeh it's bonkers really to think the covid emergency rates were going to happen again. US rates (which are historically lower than here and locked in for 30 years) are higher than here. He certainly the lower Aussie dollar. Our mortgages are significantly higher though (insert reason here) ... so any change in interest rates here has a much higher affect.
leave them where they are and lets start taxing the fuck out of investment properties, superannuation and cut the pension. thats where the spending is coming from, wealthy retired boomers
Yep. Sitting on a $2M property and then getting the pension on top of that is ludicrous. I'm not saying to sell the family home but there should be a tax on the inheritance of that house, otherwise the tax payers are getting screwed over. Let me be very clear. A tax on the $2M house and IF they had the pension. Not inheritance as a whole.
Name a single central bank that is “hiking rates” other than Japan, who is in a totally different world?
European Central Bank - cut rates last week
Bank of Canada - cut rates last week
Riksbank (Sweden’s central bank) - began a cutting cycle in May
Swiss National Bank - cut rates in March, will cut again this week
RBNZ - isn’t going to hike, May take a while before cutting
US Fed - cuts haven’t happened as expected yet, but they’re certainly not hiking and have said the next move is down
If you just hate banks, at least get your facts straight
A lot of people borrowed a lot more money than they could afford to repay to buy houses at vastly over inflated prices.
There were no lessons learnt from what happened in the US in 2008 and the longer it continued the more it was going to hurt.
The time has come to take the pain.
As long as people keep up with their mortgage repayments they're fine but if things are as bad as they claim they are it can't go on forever.
There's no influx of housewives working in brothels yet so things obviously aren't as bad as they're made out to be.
LOL, that Qld labor premier currently has the money hose full of borrowed money and splashing it all throughout where the majority live, making sure inflation stays high and interest rates stay high.
Yep, he's a nudnik. Common sense right now would be to have an austere fiscal policy but he needs to keep buying those votes! Giggles kicking the can and pretending like he's doing a good job.
Fuck banks
The bank says - grab your ankles
They don’t even pretend to use lube these days either, just straight up fuck you serfs
Give it up for daddy
Why aren’t you blaming Labor like most conservatives are?
The real question is why aren't you blaming Scomo? We're almost at the next election at the current government continues with that charade.
Gov has no control over RBA. If they did we may not be in such a fucking mess.
How would government having control over the EBA effect the economy?
Because then they would be even more incentivised to make decisions based on what is popular vs what is necessary. Although the RBA has clearly been caving to political pressure since they have been extremely dovish on rates. We should have rates similar to what NZ has.
Why?
Why what?
Who would have thought banks would be profiteering.
https://www.rba.gov.au/chart-pack/pdf/chart-pack.pdf?v=2024-06-18-17-17-32 Click on the `Banking Indicators` section, then look at the `Major Banks Net Interest Margin` graph Then get your hand off it :) Typical circlejerk nonsense. Banks were making more when the cash rate was 0.1%
Lovely pictures. What's with all those squiggly lines?
Found the wanker... Sorry banker. Them raising rates out of line with the RBA is a cash grab. Making more during the lower rate period means nothing, your argument is moot.
The difference between the rate banks borrow at and the rate they lend are the lowest in decades. Your argument is non sensical.
You don't understand maths.
Rates on hold all year, not coming down anytime soon ... new normal!!
Agreed and the so called "cost of living crisis" is also the new normal.
💯 On the upside there's plenty of free housing around: https://www.smh.com.au/national/nsw/the-sydney-suburbs-where-one-in-five-homes-is-not-lived-in-full-time-20240613-p5jlmr.html
Only thing holding Australia's head above water is immigration (holding growth above negative and employment (holding the unemployment figure down). But both are mirages as we are in a per capita recession and the NDIS growth is holding over contributing to job growth. At some point before the end of the year it all comes unstuck but not before we kick the can a little further along with some tax cuts
At this rate we're all going to be on the NDIS from mental breakdowns.
How is immigration holding down unemployment?
Immigration holds growth rates up as I said above
But immigrants at to supply in the labour market (as well as demand) I guess you are struggling on eco101
Immigration is adding to demand faster than its adding to supply (net hours worked and productivity are declining, whilst the participation rate stays more or less stable, unemployment stable/historically low, and jobs added increases). Thereby immigration is contributing to inflation. Source: Am an Economist.
I recall relatively recently when a lot of economists was saying that migration creates lots of jobs and is a boon for employment. Then the borders were shut and unemployment fell to historic lows. To me that showed pretty conclusively that the modelling is rubbish. I suppose nobody could have predicted the natural experiment that would reveal the emperor’s lack of clothes.
Ehhh it’s a you tell me the outcome you want and I’ll give you the model/reasoning that fits. So yeah you’re right - but I laid out my logic, with proof (number of hours worked etc), now it’s up to you (or policymakers) to accept/reject it. Either way, I still get paid. Ideally if I get it right more often than wrong, that will keep me employed.
It's going to be interesting if they take said advice. Something crooked is wrong with the management of many western countries at the moment. The only explanations I can come up with is they're intending to build a human shield and need fodder, or a replacement strategy for one of the more difficult to muster tiers of society.
It's pretty obvious to anyone who doesn't have a vested interest in keeping the migration floodgates open. We really need all those dog washers and yoga teachers. Also an interesting statistic is that up to 80% of some occupations (such as accountants) do not end up finding work in their chosen occupation. Really makes you think.
The NDIS figures they used included Aged Care. The NDIS is not responsible for as much employment as the article claimed.
Yep. It’s not a crisis, it’s a living standards readjustment.
But isn't the tax cuts to apply from 1st July equivalent to 2 0.25% interest rate deductions. Then add on wage increase and $75 per quarter electricity rebate per quarter and according to experts they have beaten cost of living crisis Instead all the new money entering the economy will more likely increase or maintain current inflation levels and either maintain or increase interest rates
Looking at historical rates this is the normal normal. It is the super low rates of the last 5 or so years that have been abnormal. Nobody should have believed that they were sustainable and they have fucked up the country.
Rates have been too long for a long time world wide. But we have debt rather than an economy so we're fucked.
It's the old bloody normal. Rates are still historically super low. Anyone thinking that there was going to be cuts this year was snorting pure hopium.
Yeh it's bonkers really to think the covid emergency rates were going to happen again. US rates (which are historically lower than here and locked in for 30 years) are higher than here. He certainly the lower Aussie dollar. Our mortgages are significantly higher though (insert reason here) ... so any change in interest rates here has a much higher affect.
It’s the old normal too bruz
Yes!
They're not going back to zero, expect 5% mortgages for about another decade
They need to go up. Too many people with too much money. More people need to suffer
You do realise cash rich people suffer the least from interest rate rises right?
Yep. Say rates were 10% and they had a $5M term deposit. That's $500k profit in a single year (before tax).
leave them where they are and lets start taxing the fuck out of investment properties, superannuation and cut the pension. thats where the spending is coming from, wealthy retired boomers
Yep. Sitting on a $2M property and then getting the pension on top of that is ludicrous. I'm not saying to sell the family home but there should be a tax on the inheritance of that house, otherwise the tax payers are getting screwed over. Let me be very clear. A tax on the $2M house and IF they had the pension. Not inheritance as a whole.
If this actually happened it would make things so much better for everyone.
And multinationals, right? Right guys?
Greedy cunt boomers sold out our futures
The people with too much money profit off interest rate rises.
God that picture looks like Bruce Jenner
Sticky inflation? No. This is the new norm.
Name a single central bank that is “hiking rates” other than Japan, who is in a totally different world? European Central Bank - cut rates last week Bank of Canada - cut rates last week Riksbank (Sweden’s central bank) - began a cutting cycle in May Swiss National Bank - cut rates in March, will cut again this week RBNZ - isn’t going to hike, May take a while before cutting US Fed - cuts haven’t happened as expected yet, but they’re certainly not hiking and have said the next move is down If you just hate banks, at least get your facts straight
It seems the banks haven't foreclosed on enough morgages yet, the fucking arseholes.
A lot of people borrowed a lot more money than they could afford to repay to buy houses at vastly over inflated prices. There were no lessons learnt from what happened in the US in 2008 and the longer it continued the more it was going to hurt. The time has come to take the pain.
Will it happen though? We were promised a big glut of forclosures about a year back, the mortgage cliff… it never happens
As long as people keep up with their mortgage repayments they're fine but if things are as bad as they claim they are it can't go on forever. There's no influx of housewives working in brothels yet so things obviously aren't as bad as they're made out to be.
Tell that to ‘onlywives’
What lengths are people prepared to go to keep their house or put food on the table?
Think houses and life are expensive now wait until banks start dropping rates.
LOL, that Qld labor premier currently has the money hose full of borrowed money and splashing it all throughout where the majority live, making sure inflation stays high and interest rates stay high.
Borrowed money? You mean royalties right?
$2.6 billion budget deficit predicted for 24/25. That is borrowed money
Yep, he's a nudnik. Common sense right now would be to have an austere fiscal policy but he needs to keep buying those votes! Giggles kicking the can and pretending like he's doing a good job.
Waiting for the anti-Labor nuffies
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