Why do I care....well aint that a typical boomer question unable...

Why do I care....well aint that a typical boomer question unable to see what they've created through their selfish entitled attitude


Cause i like to live in a well functioning society ie i dont care just about myself...

If you want to go back to a class system type of living like the old days i hope for your kids sake youre rich otherwise they gonna be my slaves down the track like the old days, just making enough to live, only difference is they probably wont be indentured

https://www.copyright link/policy/e...boom-is-a-problem-for-the-rba-20240427-p5fmys

There is no denying the extraordinary wealth accumulated by Australians that is growing larger by the day.
It is mainly tied up in property. Households sit on $10.7 trillion of real estate, dwarfing their equities holdings of $1.4 trillion – a record high.
Rich in assets, high in income and short on time, there’s every reason for retirees to spend big on steaks, travel and anything else they desire.

What is apparent – and business leaders have spoken about this – is that wealth, consumption and confidence is graded by age group.
While Boomers are YOLO-ing, middle-aged middle-income families are caught in the squeeze.
They are being crushed by higher rents, mortgage payments and grocery bills.
Higher interest rates will hurt them more, but arguably do little to slow the spending of retirees.
What has become apparent both in the US and Australia is that those interest rate cuts that strained borrowers had been hoping for, and which financial markets had banked on, aren’t likely to eventuate.
Last week’s quarterly inflation data surprised to the upside, and money market traders reacted by pricing out the prospect of rate cuts. By the end of the week, the outside odds were that the RBA may have to hike again.

Wealth split to widen

There are more reasons that the market’s shift to price out the prospect of rate cuts is justified.
Aitken says the inflation data may force the RBA to go further and revisit its assessment that the current 4.35 per cent cash rate setting is sufficiently restrictive.
“Let us therefore think, conservatively, that sufficiently restrictive – as opposed to ‘sufficiently hopeful’ or ‘politically opportunistic’ – monetary policy in Australia requires a 5.25 per cent cash rate,” he says.
Then there are the stage three tax cuts, which by some disputed estimates, could be the equivalent of 50 to 75 basis points of rate cuts. Perhaps that’s too much, Aitken reckons, but it’s certainly not going to restrict demand.
Aitken further points out that over the past 30 years, the RBA cash rate has on average sat 1.6 percentage points above the US Fed funds rate. So, if history is any guide, the cash rate should peak at around 7 per cent, well north of today’s setting.

Of course, this time is different. The US economy is at full employment and there is a “colossal” amount of US government spending, so American rates should be higher relative to Australian rates.
“If historical analogues hold then the RBA’s cash rate should be 75 to 100 basis points above the Fed funds rate. But it should probably not be 100 basis points below Fed funds, as it is today.”
As central banks are forced to re-engage in the fight against inflation, this could lead to further bifurcation in wealth, fortune and confidence.
The market is only just starting to adjust to this reality.