Australia's largest stock trading and investment forum Australia's #1 stock forum

Tks DavoMagicRe Point # 1: I specifically referred to "household...

First 3 Last

Share
Profile

Follow
usc75

7,026 Posts.

181

12/11/19

13:19

Post #: 41377709
Share

Originally posted by DavoMagic: ↑

Interesting points.

I cannot disagree with them from a real world perspective.

Living in main street the logic is in sync with what I see on the streets.

Point 1 is an interesting one.

The tax cuts supposedly going to mortgages. Banks would like that but cannot see it would not be true.
With low interest rates prices rise and past household purchase loans are locked in at historical cost.

With low interest rates though, prices rise especially on consumables so less consumption makes sense as things get expensive. Consequentially, people with bigger rates on loans directed to pay off mortgages so there are a number of reasons why there would be low business activity and extra funds go to paying off mortgages!!

Expand

Tks DavoMagic

Re Point # 1: I specifically referred to "household debts". e.g. paying off
* Home mortgages
* Credit cards
* Personal loans
* Cars, Boats etc loans
* Money owed to parents/grandparents/siblings
* Endless list...
3 Upvote

Reply

There are more pages in this discussion • 48 more messages in this thread...

First 3 Last