The Reserve Bank has increased interest rates...
#301
Lost in BE Cyberspace
Joined: Oct 2005
Location: Hill overlooking the SE Melbourne suburbs
Posts: 16,622
Re: The Reserve Bank has increased interest rates...
But if you don't believe The Age has a vested interest like all other newspaper organisations in a buoyant housing market then you are being nieve.
The Age is generally a pretty good well balanced paper and will run stories about problems in the housing sector, but only to a degree as it knows where it's breads buttered. It has not mentioned the lower auction clearance rates for a couple of weeks now and yesterday the main story about property was about 1 single house in Northcote selling for over 2 million.
A property sold next to me yesterday and on the big SOLD sticker that was splashed across the sales board was the logo also in bold letters THE AGE.
The Age is generally a pretty good well balanced paper and will run stories about problems in the housing sector, but only to a degree as it knows where it's breads buttered. It has not mentioned the lower auction clearance rates for a couple of weeks now and yesterday the main story about property was about 1 single house in Northcote selling for over 2 million.
A property sold next to me yesterday and on the big SOLD sticker that was splashed across the sales board was the logo also in bold letters THE AGE.
Many positive stories have tens of tens of comments from punters talking down the market with glee.
#302
BE Forum Addict
Joined: Mar 2009
Posts: 1,412
Re: The Reserve Bank has increased interest rates...
I don't think people should be taking pleasure in either rampant bubble or crash, as both will result in huge pain for society. As for talking the market down, I'm not convinced that it's possible to destroy a market based on sound fundamentals purely by attacking sentiment. It's interesting how many parallels there are with the Irish crash so far. That's not to say that I think this slowdown will follow the same path.
#303
Forum Regular
Joined: Jan 2010
Posts: 188
Re: The Reserve Bank has increased interest rates...
My argument is that in a world where only metal has value, there would be total lawlessness. Thing is, there is along way to go before this, and in the meantime, paper is worth less and less and less. In 1910 gold was $20 an ounce, in 2000 it was about $250 an ounce. Today it's more like $1300 an ounce. Remember, paper's increasing worthlessness is not just relative to gold, but also to property and other assets.
To create an index take gold in 1980,$850 an ounce,around 3-4 weeks wages,gold now around 6 days wages,and dickheads keep trying to tell me that gold is a good hedge against inflation.
The index,well gold at 850 in 1980 ,the DOW at 700,call it even shall we.Gold at 1300,DOW at 11000,which has had the better rise.Income,well bugger all from gold,shall we say 2% PA from the DOW.
Tomorrow all the experts in the world and all the articles in the world cannot predict the future,you have to think for yourself.What shall we do?
300k into a property,tax rebates,income expected, capital gain over the decades.
300K into shares or an index fund,tax rebates,income,capital gain over the decades.
300k into gold,no tax rebates,no income,capital gain over the decades?
Keep having our lives lead through newspaper articles and experts shall we.
Geordie downunder
#304
Re: The Reserve Bank has increased interest rates...
Another Geordie Down Under...