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clock Created with Sketch. 21/03/18
10:22
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Originally posted by Menta
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Welcome aboard Barg! I remember those times like they were yesterday as they are burned into my brain being a young kid back then with a father who was a property developer like his father before him too. The roller coaster of housing market highs and lows, the extremes in emotions, the family stress that ensued after the crash that inevitably followed but which of course no one foresaw. Ahh how times have changed...NOT!With bond yields rising globally Australian banks cost of offshore funding will rise regardless of what our RBA does or does not do with the OCR. The market is telling us that interest rates are rising and that global debt bubbles have never looked more precarious. Australia may have escaped the GFC relatively unscathed (due largely to China's massive stimulus supporting our exports and the Government's prompt fiscal actions and HBs grant boost) but the resultant complacency and market ignorance, indeed arrogance, the likes of which I've never seen before, is sadly likely to result in a financial, economic and social episode that our grandchildren will be talking about long after we're gone.
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Thanks for your excellent post Menta, your thoughts are very much in line with Peter Costello's comments in the below link.The inevitable return to higher interest rates is necessary warns Future Fund chairman Peter Costello but it will be more painful for the nation’s deeply indebted households the longer it was held off.
https://www.msn.com/en-au/money/mar...arning-for-households/ar-BBKs6rF?ocid=spartandhp
