RBA cannot raise rates for the fear that many people will hit s*** creek due to very high debt levels. This is due to the "greedy" banks (the banks themselves have said they were greedy) who lent many times more than what they should have to 'greedy' property investors who also took more than what they needed. The 'greedy' property investors are now blaming the "greedy"banks because it makes them feel better.At the same time the RBA cannot reduce rates for the fear that these 'greedy' property investors will then start up again increasing debt levels even more.
Good news is that the US FED will raise rates for us and do the RBA's work ... with the banks raising their rates independently ... regardless of the RC and what is to come. At the same time they now cannot lend as much.
Bad news is that the majority of mortgages in Australia start with the number 3, which means they can handle it. We need to have the majority of loans start with the number 4 ... it is only then the popcorn can come out as we watch the rabbit hole get deeper.
