No Kincella... I was employed straight from Uni on a Grad program 1 of 3 chosen from 10,000+ applicants around Australia. Was propelled up the ladder and could see that I did not like the Corporate way of life after 10 years so decided given that I had built up enough wealth doing other things to exit and concentrate on various opportunities that prevailed.
In terms of Interest Rates, this is a typical stimulus driving initative which is of no consequence short term but stimulatory medium (6-12 months). The facts are that if you put 4 econmists in a room and ask them to point to the blue corner (all corners being different in colour) they will all point in different directions.
The non-passing of interest rate cuts by the Banks is a new phenonemon and the reason is clear and that is they are taking advantage of market conditions and extending their oligopoly powers, whilst at the same time boosting their balance sheets and protecting their shareholders. Do not de fooled that the cutomer is first in a Bank, it is the shareholders (and the employees - Senior).
The best way to measure whether interest rates are going to go up or down is simply to look at the Variable Rate versus the 5 year rate. At the moment for example on Commercial debt (Commercial collateral) I can raise $1M+ at a Variable Rate of 9.89% whilst on a 5 year basis at 8.34% a spread of 1.55% even great on a 1 year basis at 6.78% spread of 3.19%.
These spreads are massive and indicate long term that rate are going to fall. I am advising all to take 1-5 year Fixed on all debt and dump Variable, as the variable is purely profit margin to Banks.
Note: Increase in Margins to Banks of late? - Yes = BUY BANKS, no not necessarily the Banks are provisioning for BDD (Bad and Doubtful Debts).
