EYE-BALL Guru on – Treasurer SWAN – “A Craven” when it comes to dealing with the markets …

November 1, 2011
RBA Decision to cut Interest Rates by 0.25% – Gutless ..
The RBA decision to cut official interest rates by 0.25% today is the most gutless Central Bank decision in many a year.  The A$ had factored the cut and it was predictable – what was needed was un-predictability and something that would alarm current traders and get them out of and sellers of A$.

This decision has no positives – US, UK, Japan, and the Swiss,  have interest rates under 1% – Australia’s are now 4.5% …

Our housing market delinquencies are climbing – house affordability has never been worse – dropping interest rates with a cessation of the home buyers grant and the cancellation of the negative gearing tax relief on more than one investment property would allow the market to self correct.

Australia’s housing market is in the toilet and all based on artificially high interest rates – and investment negative gearing for housing.

Unwinding this nightmare to allow home affordability to return and prices fall – will be a vote losing exercise and nobody wants to go there.   Both sides of politics want to fu_k this and the next generation of home buyers by freezing them out of the market …

A 2-3% cut in interest rates brings us into line with the rest of the world – people will then have to look to invest in business to generate income as opposed to living off investment income – make the capital work that is what Governments should be about – create tax incentives in business incentives and not Housing ownership.

Our Business model is wrong and not working and it is up to the Government to create the small-business incentives to drive self-employment and opportunities.

The RBA decision could have been made by high school students with the depth and breath of numbers telling … no – screaming that interest rates had to be cut …

The 0.25% tells us all that the RBA Board are safe merchants – that as Bankers they want the ‘sure-thing’ and not be exposed to any negative media – I hope the main stream media serve it up to them and call them for what they are.


The EYE-BALL Guru …

%d bloggers like this: