rba cut - 1% , page-21

If this rate cut stimulates spending at all, which is very doubtful, it won't be people up to their neck in debt who spend.

It will be the savers who are now loosing money against inflation who finally realise that this country treats thrift and carefulness with disdain, and they might as well join the mob.

Once this money is gone, the recession will be deeper and longer.

The RBA are only making these rate cuts to keep people paying for their home loans. As Real estate values fall the Banks will sink in debt and the Government will be broke, unable to fund their handout policies and their unfunded guarantees.