My advice is the same. Get out of debt and invest. Amazing how humans forget. 2008 was the same. Every ten years or so we go through this. Instead of being in debt for stuff invest that money and soon you’ll be in a much better position to weather the storms. The fed should have raised interest rates a year ago when it was clear the economy was out of control. Also government spending and printing money is a major cause of inflation. Yes we’re in a recession.
When the stock market rebounds, many investors may come to regret not investing in the red today. It's possible that this pricing will never be seen again. If you have a fantastic vision for it, there is always opportunity in the midst of chaos.
@The Bulls Of Wall Street That's impressive! I could really use the expertise of this advisor, my portfolio has been down bad.... Who’s the person guiding you?
I just looked up this person out of curiosity, and surprisingly she seems really proficient. I thought this was just some overrated BS, I appreciate this.
The question isnt if there was too much stimulus, its rather what we were stimulating. Unfortunately it was asset bubbles rather then productive investment.
Collapse is generous 1st time in our history with a full generation that wasn't taught financial literacy, civics, Google fixes their problems if their parents don't do it for them. Reckoning for participation trophies is incoming
It is getting so bad that consumers are racking up credit card debt. In April alone, credit card debt went up 20% while rates have doubled in a year. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse is near.
The severity of the condition of our economic circumstances is beyond many peoples comprehension and many continue to deny its existence. People are working and there is little or nothing to show for it. everybody is basically working to sort out one bill or the other. no savings.
Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire. Personally I hired ‘’Nicole Ann Sabin ’’ a financial advisor who sets asset allocation that fits my tolerance and risk capacity, investment horizon, present and future goals.
It would of been nice if the previous government didn’t give away Billions to the wealthy. The working class has to pay for it with inflation while the wealthy are protected thew there investment’s. loose loose for those who work and pay tax’s , win win for the wealthy who generally dodge tax and will probably come and collect more property on the cheap as rates go up. This is not a mistake or a surprise. This is the outcome of a system that is designed to favour a select few. It’s not a bug it’s a feature.
No it’s the result of a population that’s easily propagandised and voted on perception without bothering to take a genuine interest because they’ve deliberately made it too complicated to understand
@@j05hau the economic system has been made deliberately confusing so as to make it impossible for layman to understand, it’s fake, this way they can manipulate the population and lie their way into power, where they simply continue to profit from a fake system where they have full control. The lies aren’t that hard to see though, it’s just formal logic, unfortunately people go with perception, which is always flawed. A population that’s dumb and selfish means a flawed democracy, just look at the US, they don’t even have a democracy
Easy you print it... or you enter a ponzi scheme of housing... you buy house, they go up.. everyone starts to follow, but this time they borrow for existing housing, a second home to negatively gear to save tax, 3 million of them, so they print more money for existing assets so ppl can save on tax.. increasing the pool of money on existing assets which produce nothing (BAD) it all goes along ok except for genuine home buyers which the inflation of the new money undermines there savings while waiting for a dip. Then comes Covid whcih compounds the situation. more moeny printed... then add Ukraine (not overly convinced this is a genuine issue of inflation, Russia didnt print billions during Covid.) Anyway.. those who borrowed will probably get protections rolled out... and god forbid the banks end up with ppl not paying mortagaes and they have to have a fire sale..!! which is what shuld happen.
we'll see a depression & be distracted with a WORLD WAR & have them stating we need to tighten our belts inorder to fight the BOOGEY-MAN, u know the same shit they did with WW2....once the ELITES strip the planet of any potential to make a profit, they turn to a WORLD WAR, this also keeps the slaves from coming for them & their children....its bcz they have raped the world financial system & the only way to cover up all their crimes is by distracting us with a WORLD WAR (where they keep profiting), they did the same with WW2, we are just a year or two ahead of 1937, if you know your economic history you will know that after the crash of 1929, the world fell into another deep recession in 1937 & the only way out was to stir up Germany & Japan inorder to stoke a WORLD WAR, the ELITES were petrified that the slaves would come for them, same shit today...
My neighbour took out $2million in loans at the start of the year! i.e she bought at the top of the market LMAO now rates are flying higher and higher every month! RIP to her. Her monthly repayments are now $10k!!!
It had to happen. The economy was on its last legs about 25 years ago. It was slow, so nobody noticed. I live in a fairly large Australian capital city and there were buildings lying empty in the CBD for years. Clever manipulation and talking it up have got us to where we are. If you expressed concern, you encountered stubborn resistance, ridicule and indifference. Time will tell.
Sydney expects higher rents than NY, since the 80's government to government has over powered our economy while off shoring jobs for Elites to make more we've sold state assets in the name of it being cheaper for prices to escalate making Elites more. This country had the ability to be self sufficient but was sold out from under our feet for foreign interests and for both sides of politics to profit. Time for a real change, how about making sure the treasurer has an economics degree, health minister a background in health ect , yes it sounds pinko leftist to the extreme but it might be a start And no more parliamentary privilege, if you do wrong you go straight to jail, like monopoly, for 25yrs and your assets are seized so the family can't hide them. Then public service might actually be public service again
The flow goods through the supply chain has momentum. Stopping the flow in a couple of months creates problems that deflates prices. Starting the flow in a few months creates inflationary pressures. How could it not be?
“If you expressed concern, you encountered stubborn resistance, ridicule and indifference”. Exactly what it’s like being vegan or any other thought process that differs from the mainstream 😌
Central Banks printed tens of trillions of dollars globally and then they are surprised ...."inflation came out of the blue"......These people are the smartest people in the room
Understanding how economies work, how to manage personal finances, should be a part of official school education. We the people, seem to have no clue whats really going on.
school is there to make slaves that repeat back what they are told and never critically think for them self , the fact that you think they should teach us this at school proves my point , im a brick layer and ive been warning people since 2010 that this is coming , a total collapse and reset of the world monetary system , all becuase i turned of the ''tell lie vision '' and listened to people that predicted the 2009 GFC , now im set to make millions of this collapse
Compare the prices...1984 Rentals in Melbourne,$300 ,a month,2020 rents $1,750/$1860 2002 house price....$120,000, 2022 house prices $850,000+ Interest+ rates+ insurance
Melbourne's rent is VERY EXPENSIVE VS the USA. My room rent was only $85 USD/Month in 1990 and much 2X bigger space than Melbourne One. Free water/heater/electricity/kitchen WITH 3% GST. California was > 5% . School dorm was about 100 USD/Month at that time WITH weekly rent lines, piano/laundry room only 2 quarters for washer and 3 quarters for dryer/ free clean kitchen and the same space of private room with only 2 bed still spacious/ free TV, Movie/free BBQ party once 2 months Melbourne overall the hardware is High price and too tight city. Melbourne got too many Chinese compared the Utah State. But still too expensive compared to California State in the same time. Sydney is even S U C K S that I can't see/smell the real Australian color at all
not just in Melbourne, thats nearly worldwide the same. Here in Chile where I am it even got worse (proporcional). Same in Germany, ..... . Maybe it is bc there ar more and more ppl living with less resources over all => panic,.... AND most ppl are afraid or stupid, falling to the promises of little dictators of all sides: Trump, Putin, Chavez, Erdogan, .... . A big middle class what would be the best thing to be for all, that s not their world! And the populists from the left and the right are grabbing and grabbing and keep on grabbing. Examples: Pinera here in Chile, as president he wasn t so bad/central => then after elections we had the choice between far right and far left. Same happened in Columbia now!
In 1975 the average Australian wage was around $7,600 and the avarage home in Sydney was $28,000 that's 3.6 x your yearly income. In 2022 your avarage home in sydney is $1245,000. to put that into perspective. If you want to have the same buying power today as just the avarage run of the mill worker from the baby boomer generation in 1975. You would need to be earning $345,000pa . So it's at least 3x harder now days if not more. Any boomer that isn't doing well for themselves after living through that kind of opertunity has had one of two things happen. One..some kind of catastrophic disaster in there life. Or the more likely reason they have been lazy as can be.
Against the banks advice I fixed my mortgage last year in March for 5 years. Sure I could pay more in the long run… but the peace of mind right now that I’m not trying to find extra money for the mortgage along with fuel, groceries and all other expenses made it worth it. It’s a shame more people are not educated on options… now to fix, it’s essentially too late 😔
Fixing a rate is not necessarily the best option for some. It has its merits, but a variable overall is a better means of managing your mortgage. Often with fixed rates, there are caveats on how much more you can pay off or set aside against the principle. Fixing it may appear better, but overall - post fixed rate, you're worst off, particularly when interest rates shift beyond that fixed term and you haven't built the necessary buffer. If you did variable and can afford to pay more or utilise the redraw on your mortgage. You'd be better off putting all of disposable money on the mortgage and redrawing as necessary. That way, you'd reduce the interest payable and more effectively pay down your mortgage.
Being from the US, I find the fixed vs variable interest situations interesting. Here, it's frequently a better option to get a fixed rate because 1) it's generally a consistent payment, and 2) you can refinance to a lower rate later if the option comes up. Part of the big housing boom here last year was from the low interest rates and many people also refinanced.
My neighbour took out $2million in loans at the start of the year! i.e she bought at the top of the market LMAO now rates are flying higher and higher every month! RIP to her. Her monthly repayments are now $10k!!!
won't happen a building house stud is $21 from $7 3 years ago builders priced in fixed at approx $10.50 per stud that 100,% increase wages are about the same level ,builders are going broke inflation is the problem due to the virus and price gouging interest rates will be 15 percent in 3 years skilled workers are retirees like myself .the biggest problem was the technical schools where disbanded in the 80,s skilled tradesman are like gold , we have to buy stuff from overseas.
Number one tip: you never believe what the RBA states in the public arena. Watch the banks because as we know they will increase rates independently of the RBA.
Is anyone else sick of this game between the two major parties. The NLP stay in power for years spend like drunken sailors on subsidies and corporate tax cuts for the wealthy. Labor comes to party and agree that inflation is caused by workers and working poor and introduce austerity. The electorate gets sick of this and re elect the NLP rinse and repeat. Even this story plays into the corporate narrative
we'll see a depression & be distracted with a WORLD WAR & have them stating we need to tighten our belts inorder to fight the BOOGEY-MAN, u know the same shit they did with WW2....once the ELITES strip the planet of any potential to make a profit, they turn to a WORLD WAR, this also keeps the slaves from coming for them & their children....its bcz they have raped the world financial system & the only way to cover up all their crimes is by distracting us with a WORLD WAR (where they keep profiting), they did the same with WW2, we are just a year or two ahead of 1937, if you know your economic history you will know that after the crash of 1929, the world fell into another deep recession in 1937 & the only way out was to stir up Germany & Japan inorder to stoke a WORLD WAR, the ELITES were petrified that the slaves would come for them, same shit today...
House prices need to fall by 50% for Australia to be affordable, i honestly dont get why we dont enforce laws like in Thailand where only Australian citizen's can own property in Australia. We dont want Foreign un-interested investors that dont give a shit if Australia is the best country in the world they only want to store their money here because they cant in china. Do this and high-end property would be for Australians only and that'll help this housing crisis we have currently its not supply at all. We got to eliminate controllable demand
But no we live in a police state that wants to extract every dollar out of every human on earth and put it into housing realistically Australia is a plague to the worlds economy.
@@j05hau Nah local investors make up a very small margin. Plus we dont need to be concentrating on lower earning people in Australia we need to be concentrating on the unlimited buying power out of china because they dont want to buy property there its a rip off because of the 99 year leasing deal. We eliminate all foreign investment into property and force all foreign owners to sell to Australians you'd have a very different housing market.
Crisis? Australia boasted the high standard of living and high wages for more than 30 years. The country was self absorbed dreaming the prosperity would continue forever. While the property developers flourished and many citizens invested in the property, the cost of housing increased and the homelessness increased. This new reset is overdue. Change the way the Aussies think about life.
There has never been the case since the invention of modern monetary policy where inflation had subsided before interest rate rose above inflation rate. If historical patterns hold, the target RBA rate should be north of 5%.
My neighbour took out $2million in loans at the start of the year! i.e she bought at the top of the market LMAO now rates are flying higher and higher every month! RIP to her. Her monthly repayments are now $10k!!!
@@eric5901 she'll be handing the keys back to the real owner of that house. THE BANK LOL. people think they own their houses lol. i say to them stop paying the mortgage and you'll see real quick who owns that house you're renting off the bank. same here in sweden. normal people on normal incomes with giant mortgages thinking free money will be here forever. i'll be laughing my head off when the banks throw the idiots out. we used mega low rates to pay our 200k mortgage off in 10 years flat. bring back 15% rates asap i say
…”the right set of mistakes” is a concept I am going to steal and over use for the rest of my life. Bravo that man! Beautiful thought process, right there. 😂
That was like saying drinking until you pissed your pants last night was a good move because it was fun at the time. Probably not a good style of management to apply to a nation's economy
So the report highlights that there are supply shortages of materials, skilled workers, also fuel as drivers of this inflation. How mandating to take more out of a person's bank account and giving it to the banks (for nothing in return) fixes this and any subsequent price increases, is baffling. It surely does not stop the shortages mentioned, especially if supply shortages of material and fuel are external to the local economy. The demand for some of these shortages might drop with this measure but surely a supply shortage will still exist even with the somewhat less demand. Fuel demand is probably very inflexible, users do not seem to be wanting (or be able) to reduce consumption, even at elevated fuel prices. Additionally, not every person who is now having to give/pay more to the banks got the incentives mentioned (and possibly not to the generosity that was sometimes evident), so why take everyone's savings indiscriminately? Why not target the sources that have the means to drive the inflation and actually do, not those people who barely have any savings or are now driven to have hardly any meaningful buffers remaining at all. Don't assume that every person has the capacity to have enough of their savings (if any) taken away, with ever increasing rates. It hits hard on the cost of basic living quarters and sustenance, to begin with. It is already very hard to get by for many, to meet basic needs. Yet all are mandated to endure this, even though many do not have any meaningful contribution to the demand of said materials or fuel. Some of the written comments here about future prospects seem to be very realistic and are worrying. The reserve bank with a simple, blunt (as the report puts it) and indiscriminate tool. Perhaps there is more in the reserve bank toolbox to deal with these external supply shortages, high prices (stubborn if they are externally caused) and great impact this is all having on some people and businesses.
At 64 years of age I’ve never seen things like this. Everything’s right up “brown creek.” We are fortunate we own everything and have no debts and we live ok but I seriously feel for others doing it tough and I’m acutely aware how hard it is for so many.
Hey Robin, I'm homeless in QLD. Police stop by every now and again, put the flashing blues and reds on me, walk around a bit, then get in the car and drive off. It'll be a test of compassion if they leave me alone to park at the local servo in order to sleep in a car.
Very hard. I was planning and getting excited about quitting work . Daughter was having a few problems so I bought her a house for cash. Me , I now have to plod on forcing more sales on people because the company needs to compensate for down turn. How big is company? Multi billion dollar big.
@@chuckmaddison2924 Oh poor you, Chuck. My heart weeps for your misfortune of buying a house for someone else who will now never know hardship or the value of money & hard work. People like you ARE THE PROBLEM and now will take up a job that they should have rightfully left because of poor economic decision making.
This is a supply side problem but there is nothing you can do about that either. Supply is short so you have to dampen demand down to meet the new low. Rates have to go up. Rates have been too low for too long anyway.
we'll see a depression & be distracted with a WORLD WAR & have them stating we need to tighten our belts inorder to fight the BOOGEY-MAN, u know the same shit they did with WW2....once the ELITES strip the planet of any potential to make a profit, they turn to a WORLD WAR, this also keeps the slaves from coming for them & their children....its bcz they have raped the world financial system & the only way to cover up all their crimes is by distracting us with a WORLD WAR (where they keep profiting), they did the same with WW2, we are just a year or two ahead of 1937, if you know your economic history you will know that after the crash of 1929, the world fell into another deep recession in 1937 & the only way out was to stir up Germany & Japan inorder to stoke a WORLD WAR, the ELITES were petrified that the slaves would come for them, same shit today...
Free essential services (healthcare, public transport, dental, education, trades, basic food) are needed to put Australia back on top. Cover the essentials and let the workers be more productive.
@@hardystein114 Yeah its shit that Australians have let this happen. Our culture really isn't productive for democracy unfortunately. Gravey trains runnin out tho
I was one of the first home buyers enticed by Phillip Lowes comments around interest rates - I now realised that we first-home buyers will be f**cked thanks to the these lies - I really hope someone takes a class-action lawsuit against the RBA
we'll see a depression & be distracted with a WORLD WAR & have them stating we need to tighten our belts inorder to fight the BOOGEY-MAN, u know the same shit they did with WW2....once the ELITES strip the planet of any potential to make a profit, they turn to a WORLD WAR, this also keeps the slaves from coming for them & their children....its bcz they have raped the world financial system & the only way to cover up all their crimes is by distracting us with a WORLD WAR (where they keep profiting), they did the same with WW2, we are just a year or two ahead of 1937, if you know your economic history you will know that after the crash of 1929, the world fell into another deep recession in 1937 & the only way out was to stir up Germany & Japan inorder to stoke a WORLD WAR, the ELITES were petrified that the slaves would come for them, same shit today...
@@johnnybgood3909 Thanks for your nothing comments. We'll get by because my income can cover multiple interest rate rises, but this will ultimately have a knock on effect with the many who cannot. Don't sound so smug, markets and "smart money" use official statements to make financial decisions every day.
@@realmoa yet no complaints when investments go well is there? It's a game.. you play it you take the risks.. you win, you lose.. why does everyone look for someone to blame rather than take any responsibility
This was all by design. When COVID hit I started preparing for the Great Reset that's on the way. Sadly more pain is coming that will rival the Great Depression. Prepare accordingly and good luck to you all!
Please include the main factors of the poor financial management (eg gas prices nsw vs wa) and decisions relating to the continuing transition into fossil fuels. Climate change causing exponentially accelerating inflation
The government play politics 90% of time and run the country 10% of the time. I wonder how much time they spent talking about gay marriage vs actually discussing the cost of electricity and how complicated electricity markets work.
There is nothing else RBA can do, if the government of the day doesn't solve the supply side. This has been the case since the LNP took helm of the government since 2013. Hands off approach to governing, funneling money into pet projects and donor benefits, and leave RBA to pick up governing the economy, then complain about falling/ rising interest rates.
@@edwin5419 That will be preferable, although the RBA's mandate is to keep inflation to between 2-3%, and they have to act when government intransigence force them to act with an economy-wide blunt tool like interest rate.
@@fisherfriendman and if punching interest rates causes inflation to get worse? Given it's a supply side issue, that well could happen. If companies spend more in debt servicing, they have less to spend on rebuilding the infrastructure of the supply chains...
The girl in the beginning is surprised there's an electricity, water bill and strata? Yes dear, you're not living at mums anymore, real world sweetheart.
Its really hard find an example of an economy that has beaten inflation without going into recession. Anything is possible but not probable. BTW, the statistics we see are for the past. Today's numbers won't come out until the future.
This video skips over a critical point regarding inflation that every mainstream media video skips over: It is not in inability to keep up with demand that causes inflation but rather the willingness to raise prices when you know you have a lot of demand. Excess demand does not mean you are making less money than usual. IF a company actually does have to raise prices to profit as they were before, you haven't mentioned it in this video. And no one ever does.
They won't stop increasing rates......they can't...we are in for a huge amount of pain. The Government and the Banks have no idea what they are doing! :(
I have ZERO empathy for anyone with a mortage. As a renter, I get none of the absurd tax breaks homeowners do. I also resent that central banks have been stealing my savings for the past 15 YEARS (through expansionary monetary policy) to give borrowers cheap loans. I slave away 6 days a week working and live below my means. People who live out of their means should be kicked to the curb, but the government wont let that happen.
@@thunderbird4709 Your rent is subsidised through neg gearing to incentivise the private sector to invest in rental accommodation and provide housing as the government doesn't want to invest in housing.
@@groundswell3673 Nope. any rental assistance from the government only applies to people with less than $48,000 in non exempt assets. I have over double that so unfortunately I get zero. The government should not be involved in housing in any way. Public housing should not exist, The problem is central banks artificially suppressing rates to protect households and businesses that should be failing.
@@thunderbird4709 I wasn't talking about direct rental assistance from govt, I was pointing out that your rent is subsidised indirectly by the government through negative gearing as it's a tax subsidy/discount back to the landlord. This encourages more people to become landlords due to tax breaks and provide more rental housing. Take negative gearing away and we will probably have less landlords, less supply of houses for rent, and more people competing for rentals pushing the price of rentals up. On the flip side, the price of housing might start to come down and more people would gravitate to own rather than rent. I agree with you on central banks. Government interference in the markets is also a problem.
How is it that In the 1960’s a family of 5 could afford to live in Sydney on the average single family income and STILL be able to save for a house deposit and buy a decent size family home with a backyard that wasn’t too far from the CBD. Even with a mortgage that family could STILL be able to maintain living expenses and not sacrifice that much in terms of lifestyle choices to make ends meet. Sure they had to save more but that was because credit wasn’t as available as it is today. In the 1960’s the Vietnam war and Cold War was going on yet it was business as usual for Australia, so go figure what’s happened since then. it’s not Russia and Ukraine causing our economic crisis it’s much deeper than that! Taking the US dollar off the gold standard is one of the fundamental reasons we’re in this mess, Globalisation is another and not enough self sufficiency as a nation.
Peter Zeihan’s book “The end of the world is just the beginning” helps to understand this point in time geopolitically with a super bubble caused by the baby boomers then collapsing with their retirement and then factors like supply chains and the Ukraine war….
Demographics have been discussed for some time in the general media. This is by the numbers in all aspects of our culture. Economics is obviously the dominant numerical factor. These other factors that are happening in our history are just additional kindle.
Too little and too late. Everyone has to pay with inflation to prop up the greedy toads with loans. If you have no home loan, Interest rates mean nothing. Let the greedy C*it's fall and leave us normal people alone. Let's raise it 20%. The recession we have to have.
@vanya never. I like moving. I'm also nearly 50 and had the money to nearly by outright. My last house was next to the beach in a nice suburb. Home loans in current form where created to make slaves to the system.
Just live in Bali! Its still very cheap and u can do visa arrival for 30 days and go to Malaysia and re enter Bali again. Sydney Melbourne are so unaffordable
I agree with those 2 men, a recession is more painful. I have lived through high inflation, I can adjust my spending and stretch the dollar. When I was a child, my country experienced 77.03% inflation in 1992, our market became liberalised to the globe without the proper framework. In a bid to correct inflation, the policies that followed resulted in a recession, in fact, a collapse of our financial system. The impact to people ranged from job losses to divorce to suicide as the debt became onerous. Homes and businesses lost, sold for pennies on the dollar by institutions, while the owners got nothing out of it. I remember one wealthy man ended up selling his Lexus, a house and some other cars just to recover from his losses on the stock market. He and his family lived at his wife's hair salon business for a couple years. They recovered. Some families never recovered, living in poverty to this day.....an effect to last for generations. The fmr central bank board member is correct when he said that recessions can impact generations. I have seen it. Following that period our inflation rate ranged from 6% to 9% (with one year being 15%). 2008 we saw 22% and as we matured our inflation rate fell and ranged between 2.5 - 6% until 2022. I think it peaked at 11.3 and is falling. No issues. Point is, inflation is constant, it goes up and down. Recessions, however, can run deep and have a deleterious effect depending on how aggressive the policies are to tackle said inflation.
High interest rates reduce the amount of money Central Banks create. As the inflation we are experiencing comes from the money printing party during the covid19 pandemic it is one way to reduce inflation. Another, perhaps fairer way of reducing inflation would be to tax the people who have grown richer as a result of all that money printing.
Exactly. Primary residence capital gains should be taxed just like a stock portfolio. Its unfair someone sitting in a million dollar home pays no tax while Im expected to fork out 25% of my modest in savings account interest payments and stock dividends. They are millionaires who pay no tax while I only have $100,000 to my name.
This has been in the works building for decades since the desperate attempt by governments worldwide to prevent natural market forces to correct distortions in the market in a less dramatic way. These poor people have been lulled into a false sense of security that everything would be ok because any rate rises would be gradual and a long way off. This massive bubble is bursting big time and there will be a LOT of pain coming.
@@jobinjoseph5205 you cannot just suddenly change market rules. That is how we got into this mess. I agree tax incentives should be rolled back but not targeting ‘those who amassed wealth’.
Right, because those who sat on the sidelines during a 30 year boom were the smart ones lol. It's only those who've bought in the last couple of years, or those who thought they could retire soon, or who faced a major life issue who are going to be hurt. You know, the ones who are most vulnerable.
I wish more people would be like Prof. Justin Wolfers in remembering why they made certain decisions and especially how they felt about them at the time they made them! Learn from your mistakes but stop criticising yourself and others for things that are past. Water down the bridge.
People in Australia don't get it. These insane property prices and big mortgages every one have is serviced with loans from debt borrowed from the US. If America puts up its rates Australia has no choice.
I feel so deeply sorry for those struggling to be on the aged pension. Being on the pension at any age is a hard life but there’s always hope it’s only temporary. The age pension is for the rest of your life and if you’re living in poverty, there wouldn’t be much hope to change that.
@@suej9329 That's the stereotype that needs to be broken. That pensioners struggle to make ends meet, they don't. Pensioners are not all poor, in fact many have a net worth of over a million.
The philosophy of the rich and the poor is this, the rich invest their money and spend what's left while the poor spend their money and invest what's Left.
Reading about people grabbing multi-figures monthly as income in investment even in this crazy days in the market,any pointers on how to make substantial progress in earnings? would be appreciated...
Grabbing multi-figures in Crypto is possible with the right approach...no doubt Crypto is volatile which we've seen but committed investors are making passive income weekly and more grabbing multi-figures.
New Zealand is far worse then Australia, wages are a joke, fuel is $3.50L cost of living is horrific $7 for one cucumber, $5 for one capsicum healthy foods are a struggle to afford so most the poor are living on noodles and white bread.
My wife is a doctor and we can’t afford a house in an area that feels safe. I don’t know how so many people can afford owning a home, surely these interest rates are going to make people lose their homes.
Where is inflation that is not connected to supply chain issues. Please someone tell me? Federal reserve bank are a bunch of conservative pen pushers who read Murdoch media. This is wrong decision by the rba.
They are trying to push it to the war in Ukraine. pity, but I think we are not in that region to benefit from supply disruption unless we make all our national purchases through London?
Saving rate preferably should be higher at 3% ,and loan rate should be 6% .Banks should not make too much benefit at the expense of saver. Higher saving interest at 3% pa should help to reduce some inflation.
Let’s talk about how much money went to the Corporations all of them Airlines Banking and the ones we didn’t hear about or made public. Not the measly 300 percent received that was liver a longtime ago🧐
Why do i have this feeling that this so called inflation is only affecting the ill informed, I've been reading up on recession and the market, apparently both bull and bear market condition provides equal avenue to accrue massive gains, and a news article particularly mention a 32 year old that made $180k in 5weeks, how do I learn and apply these strategies, my portfolio has been stagnant for months.
@@hillaryflinch2334 true, A lot of folks actually downplay the role of a port-folio a.dvisor these days. I remember couple summers back, after a lengthy divorce I needed a good boost to help my business stay afloat. With the aid of an port-folio-coach, i grew my reserve of 300k to almost 850k that same year. Helped me a lot.
@@cylondon8374 sure advisors are outperforming the market and raising good returns but some are charging fees over fees....seeing that their services are currently in high demand more than ever....Seems more like extortion to me.
Not necessarily , “Dawn Marie Gatti” is the portfolio-coach that gui.des me, her f.ees are peanuts in comparison to the overall performance of my port-folio, You can look her up.
The signs were there pre Covid and the Ukraine war (3% was the benchmark). Australians, for too long, have felt impervious to financial constraint. As stated, "30 years of unprecedented growth". Unfortunately, those who haven't lived through a recession will be the hardest hit, i.e. first home buyers. FOMO (irrational exuberance)! Interest rates need to be above the inflation rate to curb the disaster, although what a disaster that would create. A procession of recessions is most likely.
If you were skeptical and listening to the likes of Jeremiah Babe and other doomsayers, you have probably been preparing for at least a couple of years before covid. Thats me. I am not fully prepared but I won't say I wasn't warned
@@sophieferrer5020 absolutely spot on Sophie. This happened in the US in the early and late 70's, a massive transfer of wealth from fiat to commodity money. My concern is that many investors (speculators) chose a crypto alternative and will be significancy impacted. "A new world order", btw a great song by Ministry (N.W.O)
What is don;t get is why Australians get ARM's and not FIXED rates on mortgages?!!!! It's common sense, do they not educate their people enough on finances ?!
Regarding interest rates. What goes up eventually comes down. What comes down eventually goes up. Why is anyone surprised? Interest rates are too low. They need to go up. Don’t forget savers have been the big losers the past few years.
Bought my house back in 1997 , paid $214 .000 , monthly income $ 2700 . few days ago a real estate agent came at my place and asked if i wane sell the property , i asked how much i can get ? he sais around $ 1, 150.000 . currant monthly income $3600 . my point , during 27 years wages increased only %25 , but propertys by %500 , dose it make sense to you ?
Maybe with all of us only able to afford eating chicken nowadays. There will be a shortage of chicken. We used to eat beef once or twice a week. Now we never. We don’t warm our house, we use candles and only shower every 2nd day. We have days when all we eat is half price white rice. We go to the park to fill up our water, because we can’t even afford water. After rent, food, petrol and kindergarten bills we have nothing left.
This is nothing. Worse is coming. In my humble opinion. Save as much as possible and stop living like its going to get better because it's not. They are not telling people just how serious this really is. A lot of people are going to lose their homes.
My advice is the same. Get out of debt and invest. Amazing how humans forget. 2008 was the same. Every ten years or so we go through this. Instead of being in debt for stuff invest that money and soon you’ll be in a much better position to weather the storms. The fed should have raised interest rates a year ago when it was clear the economy was out of control. Also government spending and printing money is a major cause of inflation. Yes we’re in a recession.
When the stock market rebounds, many investors may come to regret not investing in the red today. It's possible that this pricing will never be seen again. If you have a fantastic vision for it, there is always opportunity in the midst of chaos.
@The Bulls Of Wall Street That's impressive! I could really use the expertise of this advisor, my portfolio has been down bad.... Who’s the person guiding you?
I just looked up this person out of curiosity, and surprisingly she seems really proficient. I thought this was just some overrated BS, I appreciate this.
The question isnt if there was too much stimulus, its rather what we were stimulating. Unfortunately it was asset bubbles rather then productive investment.
And throwing copious amounts of money at corporations, not so much small business or essential workers, in the heat of a crisis.
The politicians have been stimulating themselves for years pfft
No national building infrastructure… $1 trillion debt and nothing.
Make the pie bigger is what they keep saying. Even if the pie is made from mud.
Indeed, somehow spending 300 billion for the property and housing industry during a 'health' emergency, seemed a bit strange.
Collapse is generous
1st time in our history with a full generation that wasn't taught financial literacy, civics, Google fixes their problems if their parents don't do it for them.
Reckoning for participation trophies is incoming
This period of inflation how ever long it may be takes away comfortable living in your twilight years. Not many people seem to be upset about that…
It is getting so bad that consumers are racking up credit card debt. In April alone, credit card debt went up 20% while rates have doubled in a year. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse is near.
The severity of the condition of our economic circumstances is beyond many peoples comprehension and many continue to deny its existence. People are working and there is little or nothing to show for it. everybody is basically working to sort out one bill or the other. no savings.
Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire. Personally I hired ‘’Nicole Ann Sabin ’’ a financial advisor who sets asset allocation that fits my tolerance and risk capacity, investment horizon, present and future goals.
@@PhilipMurray251 Thank you for this amazing tip. I just looked the name up, wrote her explaining my financial market goals and scheduled a call
It would of been nice if the previous government didn’t give away Billions to the wealthy. The working class has to pay for it with inflation while the wealthy are protected thew there investment’s. loose loose for those who work and pay tax’s , win win for the wealthy who generally dodge tax and will probably come and collect more property on the cheap as rates go up. This is not a mistake or a surprise. This is the outcome of a system that is designed to favour a select few. It’s not a bug it’s a feature.
No it’s the result of a population that’s easily propagandised and voted on perception without bothering to take a genuine interest because they’ve deliberately made it too complicated to understand
This.
@@todbenjamin7081 huh?
@@j05hau the economic system has been made deliberately confusing so as to make it impossible for layman to understand, it’s fake, this way they can manipulate the population and lie their way into power, where they simply continue to profit from a fake system where they have full control. The lies aren’t that hard to see though, it’s just formal logic, unfortunately people go with perception, which is always flawed. A population that’s dumb and selfish means a flawed democracy, just look at the US, they don’t even have a democracy
@@j05hau I think Tod is salty that Labor won the election.
“Don’t underestimate the central banks” ……..determination to destroy the middle class 🙄
6uild 6ack 6etter.
how we built up more money by being less productive is beyond me.
Cos we’ve kicked the can a long way down the road
Easy you print it... or you enter a ponzi scheme of housing... you buy house, they go up.. everyone starts to follow, but this time they borrow for existing housing, a second home to negatively gear to save tax, 3 million of them, so they print more money for existing assets so ppl can save on tax.. increasing the pool of money on existing assets which produce nothing (BAD) it all goes along ok except for genuine home buyers which the inflation of the new money undermines there savings while waiting for a dip. Then comes Covid whcih compounds the situation. more moeny printed... then add Ukraine (not overly convinced this is a genuine issue of inflation, Russia didnt print billions during Covid.)
Anyway.. those who borrowed will probably get protections rolled out... and god forbid the banks end up with ppl not paying mortagaes and they have to have a fire sale..!! which is what shuld happen.
called debt, champion.
It's a corrupted Anglo sphere government
Print money then give it to the military industrial complex..... More Prisons more pesticides mega bombs+ junk food
We are already in a recession…. More like heading towards a depression.
we'll see a depression & be distracted with a WORLD WAR & have them stating we need to tighten our belts inorder to fight the BOOGEY-MAN, u know the same shit they did with WW2....once the ELITES strip the planet of any potential to make a profit, they turn to a WORLD WAR, this also keeps the slaves from coming for them & their children....its bcz they have raped the world financial system & the only way to cover up all their crimes is by distracting us with a WORLD WAR (where they keep profiting), they did the same with WW2, we are just a year or two ahead of 1937, if you know your economic history you will know that after the crash of 1929, the world fell into another deep recession in 1937 & the only way out was to stir up Germany & Japan inorder to stoke a WORLD WAR, the ELITES were petrified that the slaves would come for them, same shit today...
@Elon Musk we are in a RECESSION, the official "call for a recession" from the R.B.A is 3 mths behind...
What would Elon Musk know. He’s detached from reality, his followers are simps and know nothing about finance
My neighbour took out $2million in loans at the start of the year! i.e she bought at the top of the market LMAO now rates are flying higher and higher every month! RIP to her. Her monthly repayments are now $10k!!!
@Know1 bahahahaha 👈 can you tell me what it means when someone laughs like that?? Pure enjoyment I say
It had to happen. The economy was on its last legs about 25 years ago. It was slow, so nobody noticed. I live in a fairly large Australian capital city and there were buildings lying empty in the CBD for years. Clever manipulation and talking it up have got us to where we are. If you expressed concern, you encountered stubborn resistance, ridicule and indifference. Time will tell.
People will start to move into office buildings to live.
Sydney expects higher rents than NY, since the 80's government to government has over powered our economy while off shoring jobs for Elites to make more we've sold state assets in the name of it being cheaper for prices to escalate making Elites more.
This country had the ability to be self sufficient but was sold out from under our feet for foreign interests and for both sides of politics to profit.
Time for a real change, how about making sure the treasurer has an economics degree, health minister a background in health ect , yes it sounds pinko leftist to the extreme but it might be a start
And no more parliamentary privilege, if you do wrong you go straight to jail, like monopoly, for 25yrs and your assets are seized so the family can't hide them.
Then public service might actually be public service again
The flow goods through the supply chain has momentum. Stopping the flow in a couple of months creates problems that deflates prices. Starting the flow in a few months creates inflationary pressures. How could it not be?
Correct.
“If you expressed concern, you encountered stubborn resistance, ridicule and indifference”. Exactly what it’s like being vegan or any other thought process that differs from the mainstream 😌
Central Banks printed tens of trillions of dollars globally and then they are surprised ...."inflation came out of the blue"......These people are the smartest people in the room
Understanding how economies work, how to manage personal finances, should be a part of official school education. We the people, seem to have no clue whats really going on.
school is there to make slaves that repeat back what they are told and never critically think for them self , the fact that you think they should teach us this at school proves my point , im a brick layer and ive been warning people since 2010 that this is coming , a total collapse and reset of the world monetary system , all becuase i turned of the ''tell lie vision '' and listened to people that predicted the 2009 GFC , now im set to make millions of this collapse
All by design ;)
This comment !! Financial literacy should be a must in high schools
Yr 12 Economics is the course for that.
But if they do, the the role of the "omnipotent government" becomes really small, & people in power certainly don't like it
Compare the prices...1984
Rentals in Melbourne,$300 ,a
month,2020 rents $1,750/$1860
2002 house price....$120,000,
2022 house prices $850,000+
Interest+ rates+ insurance
Melbourne's rent is VERY EXPENSIVE VS the USA.
My room rent was only $85 USD/Month in 1990 and much 2X bigger space than Melbourne One. Free water/heater/electricity/kitchen WITH 3% GST. California was > 5% .
School dorm was about 100 USD/Month at that time WITH weekly rent lines, piano/laundry room only 2 quarters for washer and 3 quarters for dryer/ free clean kitchen and the same space of private room with only 2 bed still spacious/ free TV, Movie/free BBQ party once 2 months
Melbourne overall the hardware is High price and too tight city.
Melbourne got too many Chinese compared the Utah State. But still too expensive compared to California State in the same time. Sydney is even S U C K S that I can't see/smell the real Australian color at all
not just in Melbourne, thats nearly worldwide the same. Here in Chile where I am it even got worse (proporcional).
Same in Germany, ..... .
Maybe it is bc there ar more and more ppl living with less resources over all => panic,....
AND most ppl are afraid or stupid, falling to the promises of little dictators of all sides: Trump, Putin, Chavez, Erdogan, .... .
A big middle class what would be the best thing to be for all, that s not their world!
And the populists from the left and the right are grabbing and grabbing and keep on grabbing.
Examples: Pinera here in Chile, as president he wasn t so bad/central => then after elections we had the choice between far right and far left. Same happened in Columbia now!
In 1975 the average Australian wage was around $7,600 and the avarage home in Sydney was $28,000 that's 3.6 x your yearly income. In 2022 your avarage home in sydney is $1245,000.
to put that into perspective. If you want to have the same buying power today as just the avarage run of the mill worker from the baby boomer generation in 1975. You would need to be earning $345,000pa . So it's at least 3x harder now days if not more. Any boomer that isn't doing well for themselves after living through that kind of opertunity has had one of two things happen. One..some kind of catastrophic disaster in there life. Or the more likely reason they have been lazy as can be.
Against the banks advice I fixed my mortgage last year in March for 5 years. Sure I could pay more in the long run… but the peace of mind right now that I’m not trying to find extra money for the mortgage along with fuel, groceries and all other expenses made it worth it.
It’s a shame more people are not educated on options… now to fix, it’s essentially too late 😔
Fixing a rate is not necessarily the best option for some.
It has its merits, but a variable overall is a better means of managing your mortgage.
Often with fixed rates, there are caveats on how much more you can pay off or set aside against the principle.
Fixing it may appear better, but overall - post fixed rate, you're worst off, particularly when interest rates shift beyond that fixed term and you haven't built the necessary buffer.
If you did variable and can afford to pay more or utilise the redraw on your mortgage. You'd be better off putting all of disposable money on the mortgage and redrawing as necessary.
That way, you'd reduce the interest payable and more effectively pay down your mortgage.
Being from the US, I find the fixed vs variable interest situations interesting. Here, it's frequently a better option to get a fixed rate because 1) it's generally a consistent payment, and 2) you can refinance to a lower rate later if the option comes up. Part of the big housing boom here last year was from the low interest rates and many people also refinanced.
In a low interest rate environment, it is wise to use a fixed mortgage rate.
@@goingforadds What would be the benefit of a variable rate if the interest is already very low? It cannot go negative!
We need a big drop in asset prices to place wages back in reality.
My neighbour took out $2million in loans at the start of the year! i.e she bought at the top of the market LMAO now rates are flying higher and higher every month! RIP to her. Her monthly repayments are now $10k!!!
@@eric5901 it's a shame but thats the reality of buying into the hype. Hopefully people sell before it's too late.
won't happen a building house stud is $21 from $7 3 years ago builders priced in fixed at approx $10.50 per stud that 100,% increase wages are about the same level ,builders are going broke inflation is the problem due to the virus and price gouging interest rates will be 15 percent in 3 years skilled workers are retirees like myself .the biggest problem was the technical schools where disbanded in the 80,s skilled tradesman are like gold , we have to buy stuff from overseas.
Yep, but watch the new mortgagees lose 20% of their house values....
What we need is our own industry...not pizza joints or pot stores
Number one tip: you never believe what the RBA states in the public arena.
Watch the banks because as we know they will increase rates independently of the RBA.
I certainly don't remember voting for any of those men and women who make monitary decisions on our behalf
"inflation came out of the blue" - NO! Everyone warned politicians and banks.
Is anyone else sick of this game between the two major parties. The NLP stay in power for years spend like drunken sailors on subsidies and corporate tax cuts for the wealthy. Labor comes to party and agree that inflation is caused by workers and working poor and introduce austerity. The electorate gets sick of this and re elect the NLP rinse and repeat. Even this story plays into the corporate narrative
yep its just a 2 class system...the Elites vs the Slaves
we'll see a depression & be distracted with a WORLD WAR & have them stating we need to tighten our belts inorder to fight the BOOGEY-MAN, u know the same shit they did with WW2....once the ELITES strip the planet of any potential to make a profit, they turn to a WORLD WAR, this also keeps the slaves from coming for them & their children....its bcz they have raped the world financial system & the only way to cover up all their crimes is by distracting us with a WORLD WAR (where they keep profiting), they did the same with WW2, we are just a year or two ahead of 1937, if you know your economic history you will know that after the crash of 1929, the world fell into another deep recession in 1937 & the only way out was to stir up Germany & Japan inorder to stoke a WORLD WAR, the ELITES were petrified that the slaves would come for them, same shit today...
House prices need to fall by 50% for Australia to be affordable, i honestly dont get why we dont enforce laws like in Thailand where only Australian citizen's can own property in Australia. We dont want Foreign un-interested investors that dont give a shit if Australia is the best country in the world they only want to store their money here because they cant in china.
Do this and high-end property would be for Australians only and that'll help this housing crisis we have currently its not supply at all. We got to eliminate controllable demand
But no we live in a police state that wants to extract every dollar out of every human on earth and put it into housing realistically Australia is a plague to the worlds economy.
Census data. 1 million empty homes
Investors are the problem. Need to put a cap on investment homes or increase the tax per property asset owned
@@j05hau Nah local investors make up a very small margin. Plus we dont need to be concentrating on lower earning people in Australia we need to be concentrating on the unlimited buying power out of china because they dont want to buy property there its a rip off because of the 99 year leasing deal. We eliminate all foreign investment into property and force all foreign owners to sell to Australians you'd have a very different housing market.
yes you'd have like vacancy's of like 30% + put who cares we didnt need that many property's for everyone in the first place so flood the market.
If u didn't see this coming u have rocks in your head.
nailed it
But that chief economist of one new Zealand s biggest banks said, ' it just came out of the blue', wtf😂
Crisis? Australia boasted the high standard of living and high wages for more than 30 years. The country was self absorbed dreaming the prosperity would continue forever. While the property developers flourished and many citizens invested in the property, the cost of housing increased and the homelessness increased. This new reset is overdue. Change the way the Aussies think about life.
More of the same is my guess
There has never been the case since the invention of modern monetary policy where inflation had subsided before interest rate rose above inflation rate. If historical patterns hold, the target RBA rate should be north of 5%.
My neighbour took out $2million in loans at the start of the year! i.e she bought at the top of the market LMAO now rates are flying higher and higher every month! RIP to her. Her monthly repayments are now $10k!!!
@@eric5901 she'll be handing the keys back to the real owner of that house. THE BANK LOL. people think they own their houses lol. i say to them stop paying the mortgage and you'll see real quick who owns that house you're renting off the bank.
same here in sweden. normal people on normal incomes with giant mortgages thinking free money will be here forever.
i'll be laughing my head off when the banks throw the idiots out.
we used mega low rates to pay our 200k mortgage off in 10 years flat. bring back 15% rates asap i say
dude, the system is rigged. dont u realize?
I often hear the word "unlikely" from officials just before something drastically bad happens.
“I think they made the right set of mistakes”
The very definition of ‘newspeak’
…”the right set of mistakes” is a concept I am going to steal and over use for the rest of my life.
Bravo that man! Beautiful thought process, right there. 😂
That was like saying drinking until you pissed your pants last night was a good move because it was fun at the time. Probably not a good style of management to apply to a nation's economy
So the report highlights that there are supply shortages of materials, skilled workers, also fuel as drivers of this inflation. How mandating to take more out of a person's bank account and giving it to the banks (for nothing in return) fixes this and any subsequent price increases, is baffling. It surely does not stop the shortages mentioned, especially if supply shortages of material and fuel are external to the local economy. The demand for some of these shortages might drop with this measure but surely a supply shortage will still exist even with the somewhat less demand. Fuel demand is probably very inflexible, users do not seem to be wanting (or be able) to reduce consumption, even at elevated fuel prices.
Additionally, not every person who is now having to give/pay more to the banks got the incentives mentioned (and possibly not to the generosity that was sometimes evident), so why take everyone's savings indiscriminately? Why not target the sources that have the means to drive the inflation and actually do, not those people who barely have any savings or are now driven to have hardly any meaningful buffers remaining at all. Don't assume that every person has the capacity to have enough of their savings (if any) taken away, with ever increasing rates. It hits hard on the cost of basic living quarters and sustenance, to begin with. It is already very hard to get by for many, to meet basic needs.
Yet all are mandated to endure this, even though many do not have any meaningful contribution to the demand of said materials or fuel. Some of the written comments here about future prospects seem to be very realistic and are worrying.
The reserve bank with a simple, blunt (as the report puts it) and indiscriminate tool. Perhaps there is more in the reserve bank toolbox to deal with these external supply shortages, high prices (stubborn if they are externally caused) and great impact this is all having on some people and businesses.
Inflation hasn't even arrived in Australia - Buckle Up folks the ride will be wild
I don't know about that, my 2022 land cruiser ute went from 77K to 120K when sold secondhand :)
At 64 years of age I’ve never seen things like this. Everything’s right up “brown creek.” We are fortunate we own everything and have no debts and we live ok but I seriously feel for others doing it tough and I’m acutely aware how hard it is for so many.
Hey Robin, I'm homeless in QLD. Police stop by every now and again, put the flashing blues and reds on me, walk around a bit, then get in the car and drive off. It'll be a test of compassion if they leave me alone to park at the local servo in order to sleep in a car.
Very hard. I was planning and getting excited about quitting work .
Daughter was having a few problems so I bought her a house for cash.
Me , I now have to plod on forcing more sales on people because the company needs to compensate for down turn.
How big is company?
Multi billion dollar big.
@@chuckmaddison2924
Oh poor you, Chuck. My heart weeps for your misfortune of buying a house for someone else who will now never know hardship or the value of money & hard work. People like you ARE THE PROBLEM and now will take up a job that they should have rightfully left because of poor economic decision making.
This is a supply side problem but there is nothing you can do about that either. Supply is short so you have to dampen demand down to meet the new low. Rates have to go up. Rates have been too low for too long anyway.
we'll see a depression & be distracted with a WORLD WAR & have them stating we need to tighten our belts inorder to fight the BOOGEY-MAN, u know the same shit they did with WW2....once the ELITES strip the planet of any potential to make a profit, they turn to a WORLD WAR, this also keeps the slaves from coming for them & their children....its bcz they have raped the world financial system & the only way to cover up all their crimes is by distracting us with a WORLD WAR (where they keep profiting), they did the same with WW2, we are just a year or two ahead of 1937, if you know your economic history you will know that after the crash of 1929, the world fell into another deep recession in 1937 & the only way out was to stir up Germany & Japan inorder to stoke a WORLD WAR, the ELITES were petrified that the slaves would come for them, same shit today...
There's no supply issue.
@@ings_ings oil supply ..
Good insight here, actually
@@ings_ings agree same in Canada..
Capitalism without bankruptcy is Catholicism without Hell :-)
Free essential services (healthcare, public transport, dental, education, trades, basic food) are needed to put Australia back on top. Cover the essentials and let the workers be more productive.
I agree. The greedy corporations sector have those sectors covered though , it`s just too profitable .
@@hardystein114 Yeah its shit that Australians have let this happen. Our culture really isn't productive for democracy unfortunately. Gravey trains runnin out tho
Australian housing is a bubble and it will eventually burst! Period!
I was one of the first home buyers enticed by Phillip Lowes comments around interest rates - I now realised that we first-home buyers will be f**cked thanks to the these lies - I really hope someone takes a class-action lawsuit against the RBA
we'll see a depression & be distracted with a WORLD WAR & have them stating we need to tighten our belts inorder to fight the BOOGEY-MAN, u know the same shit they did with WW2....once the ELITES strip the planet of any potential to make a profit, they turn to a WORLD WAR, this also keeps the slaves from coming for them & their children....its bcz they have raped the world financial system & the only way to cover up all their crimes is by distracting us with a WORLD WAR (where they keep profiting), they did the same with WW2, we are just a year or two ahead of 1937, if you know your economic history you will know that after the crash of 1929, the world fell into another deep recession in 1937 & the only way out was to stir up Germany & Japan inorder to stoke a WORLD WAR, the ELITES were petrified that the slaves would come for them, same shit today...
Wont be happening. Should have used your own brain when borrowing.
@@johnnybgood3909 Thanks for your nothing comments. We'll get by because my income can cover multiple interest rate rises, but this will ultimately have a knock on effect with the many who cannot. Don't sound so smug, markets and "smart money" use official statements to make financial decisions every day.
@@realmoa yet no complaints when investments go well is there? It's a game.. you play it you take the risks.. you win, you lose.. why does everyone look for someone to blame rather than take any responsibility
@@simonmoon9164 it’s not just a game it’s a my and my family’s shelter. When making decisions about your shelter, statements like above are important.
This was all by design. When COVID hit I started preparing for the Great Reset that's on the way. Sadly more pain is coming that will rival the Great Depression. Prepare accordingly and good luck to you all!
The blue glasses man gives me Caspar Jonquil from Mad As Hell vibes 😆
Out of the blue??? Every economist I follow criticised the stimulus and predicted this
Please include the main factors of the poor financial management (eg gas prices nsw vs wa) and decisions relating to the continuing transition into fossil fuels. Climate change causing exponentially accelerating inflation
The government play politics 90% of time and run the country 10% of the time. I wonder how much time they spent talking about gay marriage vs actually discussing the cost of electricity and how complicated electricity markets work.
It's so good of the RBA to tackle a supply side crunch by crushing the demand side. Such a smart lot of people. /s
There is nothing else RBA can do, if the government of the day doesn't solve the supply side. This has been the case since the LNP took helm of the government since 2013. Hands off approach to governing, funneling money into pet projects and donor benefits, and leave RBA to pick up governing the economy, then complain about falling/ rising interest rates.
@@fisherfriendman so if their (RBA) only action is to make the problem worse, their best course is to do nothing.
The inflation in the 70s was also initially supply caused yet lasted until the 90s long after the oil shock
@@edwin5419 That will be preferable, although the RBA's mandate is to keep inflation to between 2-3%, and they have to act when government intransigence force them to act with an economy-wide blunt tool like interest rate.
@@fisherfriendman and if punching interest rates causes inflation to get worse? Given it's a supply side issue, that well could happen. If companies spend more in debt servicing, they have less to spend on rebuilding the infrastructure of the supply chains...
It's stupid to get variable rate for your mortgage. That's one thing one individual cannot control.
The girl in the beginning is surprised there's an electricity, water bill and strata? Yes dear, you're not living at mums anymore, real world sweetheart.
Its really hard find an example of an economy that has beaten inflation without going into recession. Anything is possible but not probable. BTW, the statistics we see are for the past. Today's numbers won't come out until the future.
I just bought a $17 steak and I don’t regret it at all.
This video skips over a critical point regarding inflation that every mainstream media video skips over: It is not in inability to keep up with demand that causes inflation but rather the willingness to raise prices when you know you have a lot of demand.
Excess demand does not mean you are making less money than usual.
IF a company actually does have to raise prices to profit as they were before, you haven't mentioned it in this video. And no one ever does.
They won't stop increasing rates......they can't...we are in for a huge amount of pain. The Government and the Banks have no idea what they are doing! :(
I have ZERO empathy for anyone with a mortage. As a renter, I get none of the absurd tax breaks homeowners do. I also resent that central banks have been stealing my savings for the past 15 YEARS (through expansionary monetary policy) to give borrowers cheap loans. I slave away 6 days a week working and live below my means. People who live out of their means should be kicked to the curb, but the government wont let that happen.
@@thunderbird4709 should have invested those savings and you wouldn't need to carry around all that resentment.
@@thunderbird4709 Your rent is subsidised through neg gearing to incentivise the private sector to invest in rental accommodation and provide housing as the government doesn't want to invest in housing.
@@groundswell3673 Nope. any rental assistance from the government only applies to people with less than $48,000 in non exempt assets. I have over double that so unfortunately I get zero. The government should not be involved in housing in any way. Public housing should not exist, The problem is central banks artificially suppressing rates to protect households and businesses that should be failing.
@@thunderbird4709 I wasn't talking about direct rental assistance from govt, I was pointing out that your rent is subsidised indirectly by the government through negative gearing as it's a tax subsidy/discount back to the landlord. This encourages more people to become landlords due to tax breaks and provide more rental housing. Take negative gearing away and we will probably have less landlords, less supply of houses for rent, and more people competing for rentals pushing the price of rentals up. On the flip side, the price of housing might start to come down and more people would gravitate to own rather than rent. I agree with you on central banks. Government interference in the markets is also a problem.
There's a very real recession in the airline industry.
It's likely wages, particularly those in the aircraft maintenance trades, will never return.
Airlines are bouncing back hard in the US. Major pilot shortage. Fares going way up
@@MrKongatthegates Sadly, the situation with engineering in Australia's largest airline is not so healthy.
Thanks for turning on the comments 👍
How is it that In the 1960’s a family of 5 could afford to live in Sydney on the average single family income and STILL be able to save for a house deposit and buy a decent size family home with a backyard that wasn’t too far from the CBD. Even with a mortgage that family could STILL be able to maintain living expenses and not sacrifice that much in terms of lifestyle choices to make ends meet. Sure they had to save more but that was because credit wasn’t as available as it is today. In the 1960’s the Vietnam war and Cold War was going on yet it was business as usual for Australia, so go figure what’s happened since then. it’s not Russia and Ukraine causing our economic crisis it’s much deeper than that! Taking the US dollar off the gold standard is one of the fundamental reasons we’re in this mess, Globalisation is another and not enough self sufficiency as a nation.
It's a lot more people going after the same pool of resources. In 1960 there were 3 billion people and now there's 8 billion people globally
this should have happened many years ago, it would not have hurt so much.good luck everyone
Great news feeds always
Yep
Buying first house is an eye opener..
'I have looked at millions of surveys' just the sort of precision we have come to expect from Economics Professors.
HA glad to see I’m not the only one that caught on to that
The pretty lady at 3:17 would no longer have financial worries if she accepts my marriage proposal.
Peter Zeihan’s book “The end of the world is just the beginning” helps to understand this point in time geopolitically with a super bubble caused by the baby boomers then collapsing with their retirement and then factors like supply chains and the Ukraine war….
I’ll have to read it. Thanks
Thanks for eating out futures. The most greedy and selfish generation in history.
Demographics have been discussed for some time in the general media. This is by the numbers in all aspects of our culture. Economics is obviously the dominant numerical factor. These other factors that are happening in our history are just additional kindle.
'The only real weapon' to fight inflation is interest rates?? How about price controls?
6:00 mans reading from a tv screen like a robot.
Not one mention of windfall corporate profits as a factor. Seems incomplete to me
We have fallen of the edge. It is on a steep downward slope and no one knows how deep it will go.
Great work from Ian verrender.
Too little and too late. Everyone has to pay with inflation to prop up the greedy toads with loans. If you have no home loan, Interest rates mean nothing. Let the greedy C*it's fall and leave us normal people alone. Let's raise it 20%. The recession we have to have.
@vanya never. I like moving. I'm also nearly 50 and had the money to nearly by outright. My last house was next to the beach in a nice suburb. Home loans in current form where created to make slaves to the system.
Presenter: Hello Justin
Justin: HELLO!!!!!!!!!!!
Thanks for the great content. Varied perspectives. Hope it is a safe landing and away from R.
Just live in Bali! Its still very cheap and u can do visa arrival for 30 days and go to Malaysia and re enter Bali again. Sydney Melbourne are so unaffordable
The point? Never, ever, take anything but a 30 year fixed mortgage.
You buy a house in Australia you sell you're soul....
Your the target for the bank.
As houses are under water,does people have to pay they're morgages?
Yes, and don't build houses on floodplains.
I agree with those 2 men, a recession is more painful. I have lived through high inflation, I can adjust my spending and stretch the dollar.
When I was a child, my country experienced 77.03% inflation in 1992, our market became liberalised to the globe without the proper framework. In a bid to correct inflation, the policies that followed resulted in a recession, in fact, a collapse of our financial system. The impact to people ranged from job losses to divorce to suicide as the debt became onerous. Homes and businesses lost, sold for pennies on the dollar by institutions, while the owners got nothing out of it. I remember one wealthy man ended up selling his Lexus, a house and some other cars just to recover from his losses on the stock market. He and his family lived at his wife's hair salon business for a couple years. They recovered. Some families never recovered, living in poverty to this day.....an effect to last for generations. The fmr central bank board member is correct when he said that recessions can impact generations. I have seen it.
Following that period our inflation rate ranged from 6% to 9% (with one year being 15%). 2008 we saw 22% and as we matured our inflation rate fell and ranged between 2.5 - 6% until 2022. I think it peaked at 11.3 and is falling. No issues.
Point is, inflation is constant, it goes up and down. Recessions, however, can run deep and have a deleterious effect depending on how aggressive the policies are to tackle said inflation.
Excellent segment, truth from most guests though some obvious failings of analysis from the kiwi banker.
variable rate loans are a big mistake as are car leases..Big No Nos' in my lifes experience.
Got to get those commissions. 🤣
High interest rates reduce the amount of money Central Banks create. As the inflation we are experiencing comes from the money printing party during the covid19 pandemic it is one way to reduce inflation. Another, perhaps fairer way of reducing inflation would be to tax the people who have grown richer as a result of all that money printing.
Exactly. Primary residence capital gains should be taxed just like a stock portfolio. Its unfair someone sitting in a million dollar home pays no tax while Im expected to fork out 25% of my modest in savings account interest payments and stock dividends. They are millionaires who pay no tax while I only have $100,000 to my name.
Keating said it. The recession we had to have..he copped it something fierce. Yet here we are. “That old déjà vu feeling again”.
Except we didn't need this one at all.
No major economic reform has been achieved after he left yet here we are
its not just about' THEM increasing the rate', general populations knowledge on how economy works is absolutely appalling
People will always blame someone else for their stupidity.
Spoken like a true Christian
Point fingers at China or Brandon, quick! We’ve got everything to lose if we don’t blame the boogeyman!
This has been in the works building for decades since the desperate attempt by governments worldwide to prevent natural market forces to correct distortions in the market in a less dramatic way. These poor people have been lulled into a false sense of security that everything would be ok because any rate rises would be gradual and a long way off. This massive bubble is bursting big time and there will be a LOT of pain coming.
Cooling a white hot economy down to just red
Why are all the federal reserves across the world making the same moves?
All tax breaks should be eliminated. Those who amassed wealth during pandemic should be taxed back.
Nonsense
@@M.-.D will make sense soon. Wait and watch the show 😂😂😂
@@jobinjoseph5205 you cannot just suddenly change market rules. That is how we got into this mess.
I agree tax incentives should be rolled back but not targeting ‘those who amassed wealth’.
It's to risky getting a variable rate 😬.
People should take responsibility
Should not of borrowed what cannot pay when interest rises
Right, because those who sat on the sidelines during a 30 year boom were the smart ones lol. It's only those who've bought in the last couple of years, or those who thought they could retire soon, or who faced a major life issue who are going to be hurt. You know, the ones who are most vulnerable.
The philosophy of the rich and the poor is the rich invest their money and spend what's left while the poor spend their money and invest what's left
I wish more people would be like Prof. Justin Wolfers in remembering why they made certain decisions and especially how they felt about them at the time they made them! Learn from your mistakes but stop criticising yourself and others for things that are past. Water down the bridge.
People in Australia don't get it. These insane property prices and big mortgages every one have is serviced with loans from debt borrowed from the US. If America puts up its rates Australia has no choice.
I feel so deeply sorry for those struggling to be on the aged pension. Being on the pension at any age is a hard life but there’s always hope it’s only temporary. The age pension is for the rest of your life and if you’re living in poverty, there wouldn’t be much hope to change that.
Pensioners are rich AF.
You should feel no sympathy for them.
@@relaxedmuffin3666 pensioners that were renting with no savings or super I mean. Not self funded retires with million dollar properties
@@relaxedmuffin3666 Don’t stereotype all pensioners, many struggle to make ends meet.
@@suej9329 That's the stereotype that needs to be broken.
That pensioners struggle to make ends meet,
they don't.
Pensioners are not all poor, in fact many have a net worth of over a million.
The philosophy of the rich and the poor is this, the rich invest their money and spend what's left while the poor spend their money and invest what's Left.
Reading about people grabbing multi-figures monthly as income in investment even in this crazy days in the market,any pointers on how to make substantial progress in earnings? would be appreciated...
Grabbing multi-figures in Crypto is possible with the right approach...no doubt Crypto is volatile which we've seen but committed investors are making passive income weekly and more grabbing multi-figures.
Already there. Thanks RBA.
New Zealand is far worse then Australia, wages are a joke, fuel is $3.50L cost of living is horrific $7 for one cucumber, $5 for one capsicum healthy foods are a struggle to afford so most the poor are living on noodles and white bread.
Let property prices fall, it’s fine
My wife is a doctor and we can’t afford a house in an area that feels safe. I don’t know how so many people can afford owning a home, surely these interest rates are going to make people lose their homes.
They are still historically low
Where is inflation that is not connected to supply chain issues. Please someone tell me? Federal reserve bank are a bunch of conservative pen pushers who read Murdoch media. This is wrong decision by the rba.
They are trying to push it to the war in Ukraine. pity, but I think we are not in that region to benefit from supply disruption unless we make all our national purchases through London?
You’re right it should have been a 100 point rise
Saving rate preferably should be higher at 3% ,and loan rate should be 6% .Banks should not make too much benefit at the expense of saver. Higher saving interest at 3% pa should help to reduce some inflation.
Let’s talk about how much money went to the Corporations all of them Airlines Banking and the ones we didn’t hear about or made public. Not the measly 300 percent received that was liver a longtime ago🧐
Why do i have this feeling that this so called inflation is only affecting the ill informed, I've been reading up on recession and the market, apparently both bull and bear market condition provides equal avenue to accrue massive gains, and a news article particularly mention a 32 year old that made $180k in 5weeks, how do I learn and apply these strategies, my portfolio has been stagnant for months.
To successfully take advantage of the present market opportunities, you'd have to be a market pro or have one guiding you.
@@hillaryflinch2334 true, A lot of folks actually downplay the role of a port-folio a.dvisor these days. I remember couple summers back, after a lengthy divorce I needed a good boost to help my business stay afloat. With the aid of an port-folio-coach, i grew my reserve of 300k to almost 850k that same year. Helped me a lot.
@@cylondon8374 sure advisors are outperforming the market and raising good returns but some are charging fees over fees....seeing that their services are currently in high demand more than ever....Seems more like extortion to me.
Not necessarily , “Dawn Marie Gatti” is the portfolio-coach that gui.des me, her f.ees are peanuts in comparison to the overall performance of my port-folio, You can look her up.
Great tip, i just looked her up and i'm impressed, I hope this is a life saver.
The signs were there pre Covid and the Ukraine war (3% was the benchmark). Australians, for too long, have felt impervious to financial constraint. As stated, "30 years of unprecedented growth". Unfortunately, those who haven't lived through a recession will be the hardest hit, i.e. first home buyers. FOMO (irrational exuberance)! Interest rates need to be above the inflation rate to curb the disaster, although what a disaster that would create. A procession of recessions is most likely.
If you were skeptical and listening to the likes of Jeremiah Babe and other doomsayers, you have probably been preparing for at least a couple of years before covid. Thats me. I am not fully prepared but I won't say I wasn't warned
@@sophieferrer5020 absolutely spot on Sophie. This happened in the US in the early and late 70's, a massive transfer of wealth from fiat to commodity money. My concern is that many investors (speculators) chose a crypto alternative and will be significancy impacted. "A new world order", btw a great song by Ministry (N.W.O)
What is don;t get is why Australians get ARM's and not FIXED rates on mortgages?!!!! It's common sense, do they not educate their people enough on finances ?!
Regarding interest rates. What goes up eventually comes down. What comes down eventually goes up. Why is anyone surprised? Interest rates are too low. They need to go up. Don’t forget savers have been the big losers the past few years.
Already there
Bought my house back in 1997 , paid $214 .000 , monthly income $ 2700 . few days ago a real estate agent came at my place and asked if i wane sell the property , i asked how much i can get ? he sais around $ 1, 150.000 . currant monthly income $3600 . my point , during 27 years wages increased only %25 , but propertys by %500 , dose it make sense to you ?
Banks making a fortune from mortgages. No 1. If without the risk. Speculators also.
Where would you live?
No, but it's happening all over, due to house price comparisons and people disliking renting.
part of it is due to population explosion, more people seeking the same pool of resources
@@cztober3085 Totally agree , but what you earned 30 year ago comparing today , not much changed right ?
Gee it was nice to see Richard Morecroft again.
Whats worse? Inflation or recession? Economist one... definitely recession. Economist 2. Definitely inflation. Me: 😕
Yes
Maybe with all of us only able to afford eating chicken nowadays. There will be a shortage of chicken. We used to eat beef once or twice a week. Now we never.
We don’t warm our house, we use candles and only shower every 2nd day. We have days when all we eat is half price white rice. We go to the park to fill up our water, because we can’t even afford water. After rent, food, petrol and kindergarten bills we have nothing left.
Get a second job or work seven days a week 🤔
you should have been born rich then.
No one was crying when the savers were being forgotten of
This is nothing. Worse is coming. In my humble opinion. Save as much as possible and stop living like its going to get better because it's not. They are not telling people just how serious this really is. A lot of people are going to lose their homes.