rate cut - tuesday, page-12

Human Nature....Speculate......well most anyway...Even if it means picking flowers......

USA GFC Housing Bubble Prime example of what happens when Interest Rates are manipulated to levels that aren't considered Normal.....

Those who have for years lived off a REASONABLE Interest Rate return were forced to look to Manufactured Investments to create a RETURN........

As BUBBLES get bigger....more HOT AIR is sucked in.......Greed sets in........History Repeats......

As far as the CURRENT FORMING HOUSING BUBBLE.....of course the largest of cities lead the advance, with the ripple effect taking years for the outskirts to be affected.....

that is...SYDNEY will have topped out before Broken Hill starts moving up........

by this time....the RBA has raised rates on consecutive occasions.......First HOME buyers are reeling from the increasing rates...the banks are repossessing.....and the CYCLE continues........

Where are we at present.....

in the early stages....where the smarties are accumulating