interest rates going down soon, page-69

Perhaps interest rates will go down. But how will that help? Or, more correctly, why will it help? Ultra low, record low rates in the UK and USA haven't helped one iota. I suppose you could argue that higher rates would have made it worse, so the argument for Oz would be that lower rates will make for a smaller crash in property prices - but as you observe on your daily drive, everything is already tumbling - the momentum is already under way.

Walking the dog this morning, I passed a RE sign with "SOLD" pasted on it! Almost took a photo for posterity ......

Even low rates may not increase lending. Just because rates are low doesn't mean banks have to lend. Low rates in France aren't helping - the banks there are all suffering liquidity crises. Customers are withdrawing billions of Euros and depositing them with the ECB. EADS are complaining that nobody can get finance to buy their Airbuses. The Chinese Govt. has just announced that it will recapitalise China's biggest banks: on the back of property sales falling by 32% from last year, at lower prices.

Falling interest rates are more a symptom of a deflationary recession/depression rather than an attempt to restart the property market.