Bank Bid To Maintain Housing Ponzi
#31
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Re: Bank Bid To Maintain Housing Ponzi
Positives in Labor's plan would include.
Housing Affordability.
Rebalance the economy from unproductive property speculation.
Help out budget
Housing Affordability.
Rebalance the economy from unproductive property speculation.
Help out budget
#32
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Re: Bank Bid To Maintain Housing Ponzi
I rarely get into discussions about house prices on here as I, like you, don't know what is going to happen with them - the vast majority of what is written on BE on this topic is total and utter bollocks. Opinions are like assholes etc
If you want to discuss house prices, there are plenty of your fellow 'experts' who will be happy to oblige
Fill yer boots
If you want to discuss house prices, there are plenty of your fellow 'experts' who will be happy to oblige
Fill yer boots
Your call of course, but begs the question, why bother at all to respond to a thread on the very subject you don't care to discuss?
#33
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Re: Bank Bid To Maintain Housing Ponzi
Much of that was tried between 1917 and the end of 1989, when the grand experiment in East European communism came to a crashing end. It subsequently became clear that the entire house of cards had been teetering precariously for a couple of decades or more.
The futility of trying to run an economy on communist principles hasn't stopped Venezuela trying the same experiment over the past decade. They have been as successful as the East European communists were - successful, that is, in bankrupting the entire country. The Europeans were more successful thanks to the chaos after WWII, and during the Cold War, in erecting barriers to prevent flight of population and capital, whereas Venezuela has been hemorrhaging people and money for the past decade.
So what exactly is so appealing about a command economy with house prices set by the government and "jobs for everyone"? And anyway, just how does jobs for everyone mesh with increased automation?
The futility of trying to run an economy on communist principles hasn't stopped Venezuela trying the same experiment over the past decade. They have been as successful as the East European communists were - successful, that is, in bankrupting the entire country. The Europeans were more successful thanks to the chaos after WWII, and during the Cold War, in erecting barriers to prevent flight of population and capital, whereas Venezuela has been hemorrhaging people and money for the past decade.
So what exactly is so appealing about a command economy with house prices set by the government and "jobs for everyone"? And anyway, just how does jobs for everyone mesh with increased automation?
Time to ditch what is obviously not working and search for a new direction? Perhaps one a little more inclusive where nether ugly extremes of the pole can dictate policy.
#34
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Re: Bank Bid To Maintain Housing Ponzi
I will laugh loudly of your beloved Labor party gets in and the 1 year rush to beat the Negative Gearing changes skyrockets housing prices further sending your desire to get on the property ladder into oblivion.
#35
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Re: Bank Bid To Maintain Housing Ponzi
From that authoritarian systems evolve. Be that of the extreme left or right. It a result of the failure of mainstream politics which we are witnessing in a number of countries creating ideologues. Trump would be an example of such a result from the malaise. The growth of anti Euro parties in Europe another and the move away from centre parties in that part of the world another.
#36
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Re: Bank Bid To Maintain Housing Ponzi
Not my beloved Labor party, but I'll let it rest. So you want more of nothing and status quo maintained. How about another interest rate to grease the wheels of change. Don't be seduced by the rubbish sprouted by the REIA which is purely self serving.
#37
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Re: Bank Bid To Maintain Housing Ponzi
Can you honestly say, hand on heart that the ALP plan on NG will bring housing prices down?
No point slowing growth. You cannot afford it as it is.
Last edited by Beoz; May 28th 2016 at 10:26 am.
#38
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Re: Bank Bid To Maintain Housing Ponzi
Pretty obviously I'd say. No, slowing the speculative feeding frenzy, will be good for the economy. As noted previously, housing speculation is creating world beating levels of debt and is the key culprit of high home prices.
#39
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Re: Bank Bid To Maintain Housing Ponzi
Changing NG and GCT may make investors think twice about making bad investments.
The speculation is based on low interest rates. The declining inflation is the root of the problem.
#40
Re: Bank Bid To Maintain Housing Ponzi
That is now a global problem that countries are struggling with - how to return interest rates to a more normal range after 10-20 years of historically low rates without crashing the economy. If one country tries to increase rates on its own, its currency increases in value, making its exports expensive, so negatively impacting its manufacturing base.
Japan is the poster child for this problem after sliding into economic stagnation in the mid 1990's. Between 1992 and 1995 the Japanese cut interest rates from 6% to ½%, and since then they have never exceeded ½%, but have been 0% for most of the time since 1995, and are currently -0.1%.
Japan is the poster child for this problem after sliding into economic stagnation in the mid 1990's. Between 1992 and 1995 the Japanese cut interest rates from 6% to ½%, and since then they have never exceeded ½%, but have been 0% for most of the time since 1995, and are currently -0.1%.
Last edited by Pulaski; May 29th 2016 at 1:17 pm.
#41
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Re: Bank Bid To Maintain Housing Ponzi
That is now a global problem that countries are struggling with - how to return interest rates to a more normal range after 10-20 years of historically low rates without crashing the economy. If one country tries to increase rates on its own, its currency increases in value, making its exports expensive, so negatively impacting its manufacturing base.
Japan is the poster child for this problem after sliding into economic stagnation in the mid 1990's. Between 1992 and 1995 the Japanese cut interest rates from 6% to ½%, and since then they have never exceeded ½%, but have been 0% for most of the time since 1995, and are currently -0.1%.
Japan is the poster child for this problem after sliding into economic stagnation in the mid 1990's. Between 1992 and 1995 the Japanese cut interest rates from 6% to ½%, and since then they have never exceeded ½%, but have been 0% for most of the time since 1995, and are currently -0.1%.
#42
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Re: Bank Bid To Maintain Housing Ponzi
Ok so you would agree the ALP are selling it as a mechanism to make houses more affordable which would mean they are lying out their arse?
Changing NG and GCT may make investors think twice about making bad investments.
The speculation is based on low interest rates. The declining inflation is the root of the problem.
Changing NG and GCT may make investors think twice about making bad investments.
The speculation is based on low interest rates. The declining inflation is the root of the problem.
One may assume that would tick the an extent to neo liberals world view as well.
#43
Re: Bank Bid To Maintain Housing Ponzi
It's all too easy to make suggestions to reduce the price of housing, but tampering with the market can have unforseen consequences, such as a decline in the number of houses being built if prices collapse (if builders can't build cheaply enough to make a profit at theatkey price).
#44
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Re: Bank Bid To Maintain Housing Ponzi
Those evil speculators aren't buying houses and stuffing them under the bed, they're renting them out for people to live in.
It's all too easy to make suggestions to reduce the price of housing, but tampering with the market can have unforseen consequences, such as a decline in the number of houses being built if prices collapse (if builders can't build cheaply enough to make a profit at theatkey price).
It's all too easy to make suggestions to reduce the price of housing, but tampering with the market can have unforseen consequences, such as a decline in the number of houses being built if prices collapse (if builders can't build cheaply enough to make a profit at theatkey price).
Skew the buyer type. Not the price.