1. When mortgage holders pay extra monthly payments due to increased interest rates, then where does that money go?. Not to the banks themselves I would thinks as their share prices are dropping.
2. To reign in expenditure, Instead of raising interest rates that punish mainly mortgage holders but leaves those without mortgages and having high discretionary spending alone , then why doesnt the federal govt have a floating tax system?. An adjustment up or down controls the amount of free cash in the market while protecting those that are low income earners struggling with a mortgage and those on a pension. It would be a fairer way of distributing the pain across all sectors while bringing the budget back.
