saturday matinee, page-25

starbust....i totally agree with you. i also think the rba is making the same mistakes that the u.s. fed made last year. that is, keeping rates too high when there where obvious signs that homeowners were under stress.

like the u.s., australia has also become a service based economy that increasingly relies on consumers to consume.

the article in the australian cited that:

"For every 0.25 per cent rate rise from June, Mr North told The Australian, "about 75,000 additional people (will) tip over from mild to severe stress" and about "150,000 go from no stress to mild stress". "

according to business news on the abc the other night, there was suggestion that banks needed to raise rates by at least another 1.5% to just cover their borrowing costs.

it just smells like disaster in the making.