I'm not too concerned about my mortgage debt.
I only owe Australian dollars, and ten years from now I'll be able to wallpaper the place with those.
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I'm not too concerned about my mortgage debt.
I only owe Australian dollars, and ten years from now I'll be able to wallpaper the place with those.
The problem could be though @mattclarke & @tremendospercy - Aussie banks also start to realise that dollar are no longer worth much and so they lift interest rates to 20%+ regardless of what the RBA is doing. - and this is going to hurt. We know that our Senior Editor @sirknight is tries to ensure that his mortgage is fixed at low rates for as long as possible to avoid this very scenario.
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Interesting. I've always been variable. I want them fighting for me every day, not just once every five years. I also don't want to gamble that I'm a better economist than the bank's economists; although I'm starting to think I might be :)
I'm not sure the banks could spike interest rates without tanking the property market and having half their over-leveraged customers default.
Not a good long term plan, particularly as bail outs are a lot harder to get, down under.
I guess we'll all find out together :)
The central banks are currently controlling interests rates to levels that Govts can afford to pay on their ever increasing debts . This phenomenon only started in 87 before that the buyers set the rate by bidding for the bonds depending on the rate. The only way they can keep doing this is to issue more currency to buy it. The bond market is massive compared to the stock market and will eventually take back control and the rate will be set by the buyers of the debt. For example, would you buy a $1M 10 year US treasury for 0.25%. I wouldn't! And the CB's know this so they buy it so the market doesn't set the rate. It can't continue forever without creating massive inflation. So the currencies either become worthless through over issuance or the market sets the rate much, much higher. Either way it's bad.
Pissing your pants over and over to stay warm.
😂😂😂 love it dude!
That's wise and those who don't fix will suffer.
That's right, they're made of plastic so you can't even wipe your arse with them 😂
Cheers for checking in and commenting buddy.