OT: Current Affairs and Politics

[the phantom menace]

Only 48 days until Kick Dom Out day - along with his crew of LNP nasties!

 

[Gary Gutful]

Only 48 days until Kick Dom Out day - along with his crew of LNP nasties!

View attachment 70057

But be nice to Jacinda!

 

[Suitman]

I can't wait till all Eddie Obeid's mate's get back into power.
I wonder where he is sleeping tonight?

 

[the phantom menace]

Obeid is ancient history and still sleeping in custody, where he belongs. Old mate is 79 years old anyway, so if he gets out he'll probably be sleeping in aged care. About as relevant to thsi election as mentioning Robert Askin.

 

[the phantom menace]

And then there's this guy... of much more recent standing - and impact on the culture in the current LNP government.

The John Barilaro factor: former NSW deputy premier becomes focal point in state campaign

New auditor general report highlighted his office creating new rules for a grants program that saw Labor electorates miss out entirely

www.theguardian.com

 

[hineyrulz]

Both sides of politics can f**k of as far as I’m concerned, bunch of incompetent selfish children.

 

[Gronk]

I can't wait till all Eddie Obeid's mate's get back into power.
I wonder where he is sleeping tonight?

Plenty of dodgy politicians out there. That one just got caught. I was part of one which I can’t share publicly*. However one Mr Nice Guy politician (I wont say current or ex) is a squlillionaire after an eyebrow raising real estate / mining coincidence.

* professional confidentiality.

 

[hindy111]

Plenty of dodgy politicians out there. That one just got caught. I was part of one which I can’t share publicly*. However one Mr Nice Guy politician (I wont say current or ex) is a squlillionaire after an eyebrow raising real estate / mining coincidence.

* professional confidentiality.

Same. I know plenty of Politicians. They give me a few tips offs etc but I obviously can't share this publicly for the same reasons as you.

*professional confidentiality

 

[Gronk]

Same. I know plenty of Politicians. They give me a few tips offs etc but I obviously can't share this publicly for the same reasons as you.

*professional confidentiality

I don't get any tip-offs. I have no birds like you.

 

[hineyrulz]

Same. I know plenty of Politicians. They give me a few tips offs etc but I obviously can't share this publicly for the same reasons as you.

*professional confidentiality

The advantages of being a powerful millionaire.

 

[Gronk]

The consequence of Lidia Thorpe leaving The Greens is that, having been elected on a party ticket, she gets 5+ years as an independent Senator before facing re-election. Probably not what the people who voted for her had in mind.

Whilst she will be a very noisy senator, Labor have the numbers to pass things without her..

 

[hindy111]

I don't get any tip-offs. I have no birds like you.

The advantages of being a powerful millionaire.

It was a lie. I have a mortgage and a 1.95% interest rate till DEC 2024. After that I potentialy am going to have to sell up I think and let the investors reap the rewards and move back to Penrith or Perth.

 

[hineyrulz]

It was a lie. I have a mortgage and a 1.95% interest rate till DEC 2024. After that I potentialy am going to have to sell up I think and let the investors reap the rewards and move back to Penrith or Perth.

Allaned by interest rates

 

[hindy111]

Allaned by interest rates

It's fine. The system is perfect for people cashed up. Let interest rates sit at around 3.5% for years and years then drop them under 2%. Have the RBA announce they won't be going up in a hurry or any time soon which brings the FOMO into play
and house prices to record levels.
Then you flick the switch. Jack rates from 1.95% to 6.5% all within 10mths. Let the battlers decide if they rather work 60hrs a week to survive or not.
Then watch the investors swoop and add to their property portfolio. What's not to LOVE?

My only saving grace is I bought before the 30% spike. And have done a lot of renovating myself so added value. I could walk away probably with about a 300k profit. I'm a lucky one.
I know friends who have saved for 15yrs and finally got into market and a house now worth 200k less and a mortgage they can barely service and a night out now is $30 Eljahanh chicken for the family........

 

[Gronk]

It's fine. The system is perfect for people cashed up. Let interest rates sit at around 3.5% for years and years then drop them under 2%. Have the RBA announce they won't be going up in a hurry or any time soon which brings the FOMO into play
and house prices to record levels.
Then you flick the switch. Jack rates from 1.95% to 6.5% all within 10mths. Let the battlers decide if they rather work 60hrs a week to survive or not.
Then watch the investors swoop and add to their property portfolio. What's not to LOVE?

My only saving grace is I bought before the 30% spike. And have done a lot of renovating myself so added value. I could walk away probably with about a 300k profit. I'm a lucky one.
I know friends who have saved for 15yrs and finally got into market and a house now worth 200k less and a mortgage they can barely service and a night out now is $30 Eljahanh chicken for the family........

The reserve bank made that statement on low interest rates BEFORE Russia invaded Ukraine. The war in Europe caused inflation. Mostly around supply chains and the cost of energy. You make it sound like the reserve bank had a choice.

For what it's worth, the Reserve Bank said last week that they think that inflation peaked over Xmas and some economists are predicting rates to start coming down next year.

Anyway, it's not as if every second merkin wasn't warning that "interest rates can't stay that low forever" Banks have been stress testing mortgage applications* since before covid.


*

What is a Mortgage Stress Test?

A mortgage stress test revolves around predicting future affordability. It is seen by many borrowers as just another hurdle to overcome, but it’s important to understand why it was introduced and who it is meant to protect.

mortgagerequired.com

 

[hindy111]

The reserve bank made that statement on low interest rates BEFORE Russia invaded Ukraine. The war in Europe caused inflation. Mostly around supply chains and the cost of energy. You make it sound like the reserve bank had a choice.

For what it's worth, the Reserve Bank said last week that they think that inflation peaked over Xmas and some economists are predicting rates to start coming down next year.

Anyway, it's not as if every second merkin wasn't warning that "interest rates can't stay that low forever" Banks have been stress testing mortgage applications* since before covid.


*

What is a Mortgage Stress Test?

A mortgage stress test revolves around predicting future affordability. It is seen by many borrowers as just another hurdle to overcome, but it’s important to understand why it was introduced and who it is meant to protect.

mortgagerequired.com

Yes sure. I assumed they'd go up. Maybe even double to 4%
They look like hitting a peak of 7% That's a massive rise from 2% and even from your 3.5% they sat around for years. It's a huge rise.
They've literally more the trippled in the space of 10mths.

A modest house out west costing 800k with a 100k deposit so a loan of 700k.
The weekly cost of $495 a week would now be $1038 on NABS current variable of 6.6%

People are needing to come up with on average $500 a week more. It just isn't possible for many. Plenty probably budgeted for an extra $200 a week. Nobody would of expected this but.
Especially people who probably aren't as educated in the area of economics and just wanted to buy a family home. The great Aussie dream.

As I said my situation is fine. I'll battle thru it or at worse sell and move somewhere cheaper. But a lot of people will be financially ruined from this.

 

[Soren Lorenson]

The reserve bank made that statement on low interest rates BEFORE Russia invaded Ukraine. The war in Europe caused inflation. Mostly around supply chains and the cost of energy. You make it sound like the reserve bank had a choice.

The Reserve Bank should never have made that statement.

 

[hindy111]

The Reserve Bank should never have made that statement.

I'll be fine. I feel deep empathy for those with families who are going to be financially ruined by this. It's very f**king sad

Even tho they should of known cause every 2nd person said that rates won't be this low forever.

I'm sure the banks even knew. That's why they where offering 4-5yr fixed rates at 1.95% If they did know they're is no way they are doing that.

 

[Gronk]

The Reserve Bank should never have made that statement.

That's their job. They will do it again tomorrow when they announce the monthly cash rate.

Opening Statement to the Senate Select Committee on the Cost of Living | Speeches

Opening Statement delivered by Marion Kohler, Head of Economic Analysis Department and Tom Rosewall, Deputy Head of Economic Analysis Department, Sydney

www.rba.gov.au

 

[Gronk]

Yes sure. I assumed they'd go up. Maybe even double to 4%
They look like hitting a peak of 7% That's a massive rise from 2% and even from your 3.5% they sat around for years. It's a huge rise.
They've literally more the trippled in the space of 10mths.

A modest house out west costing 800k with a 100k deposit so a loan of 700k.
The weekly cost of $495 a week would now be $1038 on NABS current variable of 6.6%

People are needing to come up with on average $500 a week more. It just isn't possible for many. Plenty probably budgeted for an extra $200 a week. Nobody would of expected this but.
Especially people who probably aren't as educated in the area of economics and just wanted to buy a family home. The great Aussie dream.

As I said my situation is fine. I'll battle thru it or at worse sell and move somewhere cheaper. But a lot of people will be financially ruined from this.

Again your tone suggests that it could have been avoided and because of this "people will be financially ruined".

How could it have been avoided ?

You said ^^ that banks were offering 5 years fixed at 1.95%. I don't think you understand how fixed bank mortgage rates actually work. The pool that they lent you that money came from the fixed investment rates that they gave Aunty Gladys at 0.25% fixed for 5 years. After your fixed rates expire, the next offering will be based on what they are now offering Aunty Gladys. (it's actually more complicated and linked with bond rates, but same same for this purpose).

Variable interest rates are a different beast and reflect the wholesale cash rate set by the Reserve Bank. The banks just put a margin on that rate.