Comments on: Rates up, more to come http://www.crikey.com.au/2009/10/06/rates-up-more-to-come/ now with extra source Sat, 11 Feb 2012 21:01:43 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Altakoi http://www.crikey.com.au/2009/10/06/rates-up-more-to-come/#comment-40117 Altakoi Tue, 06 Oct 2009 23:20:49 +0000 http://www.crikey.com.au/?p=91316#comment-40117 Is it just me, or does the argument that rising interest rates are good because it means the economy is recovering seem more than a bit teleological. It seems to be that the RBA wanted to rein in lending, and that has nothing to do with the economy being good or bad. In fact, if people lent money for productive assets rather than endlessly bidding up the price of existing houses then lending should be a sign of investment and no-one would want to rein that in at the moment. So, really, we have a blunt policy response to a pathological flaw in the economy, not a rousing endorsement of its health. Yippee, let the good times roll. Is it just me, or does the argument that rising interest rates are good because it means the economy is recovering seem more than a bit teleological. It seems to be that the RBA wanted to rein in lending, and that has nothing to do with the economy being good or bad. In fact, if people lent money for productive assets rather than endlessly bidding up the price of existing houses then lending should be a sign of investment and no-one would want to rein that in at the moment. So, really, we have a blunt policy response to a pathological flaw in the economy, not a rousing endorsement of its health. Yippee, let the good times roll.

]]> By: simmobc http://www.crikey.com.au/2009/10/06/rates-up-more-to-come/#comment-40098 simmobc Tue, 06 Oct 2009 13:40:26 +0000 http://www.crikey.com.au/?p=91316#comment-40098 I guess a recovery at the ASX depends on whether you think pre GFC indicie levels were at fair value or not? whilst clearly not at the moment, there are many 'experts' who think that the ASX is not too far off fair value. Time will tell although there are some great stocks trading below fair value! I agree with you on interest rates although the easiest way to the heads of aussie voters is via the exploitation of interest rate movements. I am looking forward to witnessing how the goverment handles various opinions al a Warwick McKibbin today. I think a cash rate above 4.5% is achievable in the medium term. I guess a recovery at the ASX depends on whether you think pre GFC indicie levels were at fair value or not? whilst clearly not at the moment, there are many ‘experts’ who think that the ASX is not too far off fair value. Time will tell although there are some great stocks trading below fair value!

I agree with you on interest rates although the easiest way to the heads of aussie voters is via the exploitation of interest rate movements. I am looking forward to witnessing how the goverment handles various opinions al a Warwick McKibbin today.

I think a cash rate above 4.5% is achievable in the medium term.

]]> By: Bullmore's Ghost http://www.crikey.com.au/2009/10/06/rates-up-more-to-come/#comment-40094 Bullmore's Ghost Tue, 06 Oct 2009 13:13:29 +0000 http://www.crikey.com.au/?p=91316#comment-40094 Let the series of -- probably monthly -- 25 basis point rises begin until the cash rate is around 5.5 or 6%. I could do with some decent interest on my deposits. But what I would really like to see is a sustained recovery down at the ASX so that the value of superannuation funds rise again. Meanwhile, true to the tired old script, let the Opposition bleat on at every opportunity, as oppositions do, about how the government causes each interest rate rise. Let the series of — probably monthly — 25 basis point rises begin until the cash rate is around 5.5 or 6%. I could do with some decent interest on my deposits.

But what I would really like to see is a sustained recovery down at the ASX so that the value of superannuation funds rise again.

Meanwhile, true to the tired old script, let the Opposition bleat on at every opportunity, as oppositions do, about how the government causes each interest rate rise.

]]> By: simmobc http://www.crikey.com.au/2009/10/06/rates-up-more-to-come/#comment-40086 simmobc Tue, 06 Oct 2009 12:09:44 +0000 http://www.crikey.com.au/?p=91316#comment-40086 we were lucky that we had the ability to lower our cash rate to 3% in the first place. The true skill test of our blue collar treasurer lays ahead. With the continuing positive economic news, will he be brave enough to consider reducing spending? we were lucky that we had the ability to lower our cash rate to 3% in the first place.

The true skill test of our blue collar treasurer lays ahead. With the continuing positive economic news, will he be brave enough to consider reducing spending?

]]>