rate cut - tuesday, page-4

Good Morning.....

Yes, it is all about Interest Rates today......

I won't be surprised if the RBA cuts by 50 basis points......

See Joe's words were seized upon yesterday, for stating the facts.....

Interest rates are very emotive when political agendas are being played out......I guess they are seen as a positive by most of the 'mortgage belt', as long as they don't lose their jobs because of the weakness in the economy....

On the other hand, Self Funded Retirees who have been savers all their life suffer from the falling rates.......

History tells us that Lower Interest rates are a recipe for disaster......JAPAN....USA...EUROPE.....UK.....have all suffered from deflation, with the only solution so far being the continual printing of paper currency to try to re-inflate.......all this has done so far is promote ASSET BUBBLES, which when pricked will fall much quicker than they were formed.....

Mr Rudd says our DEBT is less than most and our Credit RATING is only one of 8 with the AAA status......

What he doesn't tell the punters.....our Interest rates are amongst the Highest in the Developed world.......

What would the current lot of new home buyers have thought when in the late 80's, 16% was a fair rate to pay for buying a home...how times have changed..

Of course, this is the FEAR when thinking of CYCLES as those days will once again come..... we will have a generation of families who struggle to meet everyday cash needs......or worse....Homeless

Some might say......those days are already here.......

Market wise......The BUBBLE will continue to inflate......