The Forum > General Discussion > RBA doing a job or faking it?
RBA doing a job or faking it?
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Posted by steve101, Wednesday, 5 August 2015 2:02:52 PM
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The website link below shows Jan 1959 to Mar 1969 mortgage interests, stable between 5% and 5.88% for those years. The reasons why interest rates were stable most probably going back to the end of WW2 is that maybe during the 1930s depression, interest rates were doing much the same as I am attempting to convey what happened during the 1980s, that low interest rates were getting people to borrow money up to borrowers maximum ability to service loans, then to raise interest rates, sending many borrowers into loan defaults.
After WW2, Having future home buyers remembering the 1930s depression, governments assured borrowers, interest rates would be stable for many years to come. http://www.loansense.com.au/historical-rates.html One thing being the most important concern for home buyers are interest rates histories, when considering borrowing money over a 30 years future. Media prompted political debates are more distracting, pointless, fading away with no change, punishing to many listeners curiosity, allowing people not prompted to consider interest rate histories. Posted by steve101, Thursday, 6 August 2015 11:57:27 AM
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Going back to 1977, property booms have lasted 2 years. I expect this property boom to crash, having investors losing considerable wealth. Why would I predict this? because the post WW2 baby boom generation has almost reached aged 70 years.
To me, the 1980s was about intentionally removing wealth from WW1 post baby boom generation.
Blame it on market forces, is not that different than blaming god for unfortunate events. Priests blame sinful behaviours, politicians blame greed, let market systems guide the economy, speculation and politicians own preforming ignorance, believed due to how politicians behave.
Watch out... it's the end of time!