Originally Posted by Trixy

I seem to recall you saying that when you had a mortgage you were pleased about having a fixed loan. How come then the US Fed invites your scorn for when people with fixed loans had to go to variable ones.. when you yourself chose a fixed loan option for your needs? I guess they were stupid unlike yourself and weren't lucky (I mean clever) enough to pay of their loans before they faced the real market ? Oh wait no, it was the Fed's fault, yet it's not Rudd's fault when our economic leaders don't think for us. Which is it because I can't keep up with the spin?

If the US Fed enabled home owners to suffer foreclosures and the sub prime crisis because of high US variable rates between 2004 and 2007 and that was wrong then why are you saying that low interest rates here will cause an economic collapse too? Make you mind is it high rates and government intervention that we should fear or it low interest rates and an ineffective treasurer. You want it both ways.

Originally Posted by king kong

Hi trixy i do beg to differ inregards to hitting a certain few ,i have lived through a couple of recessions and the worst i have experienced was here [aussie] and noone really wins apart from the well heeled retirees who get a better return on their money and we cant begrudge them that .
I do believe a tighter control on credit cards could be introduced because that casts a wider net over the communtiy inregard to credit control ,there is too much buy now pay later attitude here in aussie and the same could be said for the States and the uk .
The fact is the banks have a fair amount to answer for as in the old days they wouldnt let you borrow 3 time your income but now 6 times isnt unheard of and if you cant get in that way they will even let ma and pa in on the deal .
There seems to have been no end of ideas from the banks to get young and impressionable people into their own homes and have the dream ,its great at the time but then the poor buggers have to pay it back .
The more governments get involved with housing ie first home owner grants etc and now they are starting to introduce shared equity type homes which have been popular in the uk for a while so people can at least get into a house ,these schemes just seem to push housing costs up and up .
In reality the true wages here in WA are 50000 a year and if banks kept to their old 3 to 1 policy this would control house prices and to a certain degree the wages to build those homes thus also controlling inflation and also maintaining affordability for young couples to settle down and have a family and thus give rise to the next inline tax payers .

Originally Posted by bcworld

Show me where I poured scorn on the Fed or people with fixed loans.

Quote you: "Oh really.....look at how many times the Fed raised interest rates between 2004 and 2007......guess what happened when all those homeowners moved out of the fixed period of their home loans and onto variable. Mass foreclosures and the sub-prime crisis. I'm sure they dont share your opinion that the Fed was quite so sympathetic"

Originally Posted by Trixy

I don't know if I've lived through an official recession but my first home had two mortgages. One 19% and the other 17%. It was daunting but all one knew. I don't want to go from single figures to double again.

My Mum and Dad paid around 5% and Dad had an army one up his sleeve of 3%. My folks get full pensions (Dad has a healthy army one). I don't resent what they have earned or been lucky with. I just know that it is luck as well as management. My generation does not have what theirs did and it is not the fault of either. My bank positively encouraged a loan larger than the one I have, yet I kept it much smaller.. yet I cannot shake how unfair it is for interest rates to be the wild card in my life. I miss the $60 every time they go up .25% It's happened a lot.

Originally Posted by Trixy

Ok.....you suggested the Fed doesn't use interest rates as a blunt instrument. I pointed out where the Fed has raised rates and many people have suffered as a result. However I DON'T blame the Fed....as I understand that interest rates will sometimes rise in response to economic conditions. Absolutely no scorn there. You simply aren't able to rationalise your original statement about the Fed's actions and therefore resort to the alleged failings in my personality again....aren't you bored yet?

Originally Posted by Trixy

Well I'm bored with you analysing my so-called motives to prop up your own arguments.

Originally Posted by king kong

I know where you are coming from and i cant help but notice you and BC having a go at each other about the fed did this and the RBA did this etc .
My take on it is fundamentally the banks are at fault and the govenments are at fault for allowing the banks to offer products that inflate the economy .
The Government represents us but does not operate for the best intentions of the people ,It must know if credit is available to all un-sundrey it will head for big pain later but it chooses to do nothing untill its to late .
Housing has to be made affordable and in my book you have to knock the investor out of the equation ,he will soon get the picture when he knows banks will not lend more than 3 to 1 .
So all i can say guys please stop arguing and focus it on who are to blame and thats the banks and govrnments we have and after all you cant blame the people who want a home ,i believe its a fundamental right to have aplace of your own .

Originally Posted by Vim Fuego

Only trying to help Trix, you want to get your point across to as many people as possible don't you?

Look, PM me anything you need proof-reading and I'll help you out

Originally Posted by Trixy

For all the talk of how vulnerable the US economy is, it is still the one we all gravitate around. Interesting that when I reviewed the losses our super investments incurred the US market losses were 11% and the Australian were 16%. I admire the direction the US has taken for its economy in that they have tried to lower interest rates. Their projected recession has not happened. It's a close thing but at least their economists don't over burden the average citizen with lazy economic remedies that only hurt a certain few.

Originally Posted by Trixy

I think BC comes from a different perspective. I'm still waiting for someone with a regular mortgage to comment on interest rate increases because that is what seems to be so boring for those who are free from it.

Originally Posted by Trixy

The only money I've borrowed is for a home. I need a roof over my head, plain and simple. It was not a bad decision it was one of survival. I am managing by the way but have done no wrong in trying to secure a home. What is forgotten is that people like me HAVE allowed for interest rate rises.. but how many should we have prepared for? I can weather in total another 1%. Then it's a personal recession.

It just takes two months and no pay and it's all lost. Years of work and savings.

Originally Posted by Trixy

I think BC comes from a different perspective. I'm still waiting for someone with a regular mortgage to comment on interest rate increases because that is what seems to be so boring for those who are free from it.

I agree with you king kong. I don't see how one cannot blame a government for being a part of this. A big part. The banks are like a necessary evil but they have been encouraging huge debt in forms of massive loans and easy credit. Oh and I blame corrupt investors too for messing with our money, super should never be invested. Never invest what you can't afford to lose.

Anyway, I'm tiring. Much of this discussion has been mean spirited and without much support. I can't say it brings out the best in my either but no way am I going to be bullied into not blaming Rudd if I choose

Originally Posted by jellibaby

I think you'll find the australian economy is pegged to Asia especially China - the US have lowered interst rates to try and stop the recession as people are still quite happily out there spending credit in shops ~ personally I find nothing to admire about the USA except the sign which says welcome to Canada.

Originally Posted by king kong

i blame rudd ,howard and all the other muppets before them but it is about time the banks started to act responsibly too .
The government needs to legislate so banks cannot overlend by law this will prevent housing cost blowout due to people not being able to afford it quicker and thus there will be less of a correction .
Believe me i knowwhere your coming from but at the end of the day it will all come good .