RBA snookered 630,451 mortage holders

 Hi Readers 

I can't resist I need to vent after what I saw.

I just saw the Reserve Bank of Australia Governor come out and say that the economy didn't meet there expectations of growth and now they can't say how high interest rates will go up in Australia.

This is the same Governor who said back in October 2021 that rates won't move up until 2024, regardless of what other central banks do.

When your in public office you are there to serve the people of the nation, its your contribution to the nation. To have a position such as that you need to be careful in what you say.

As you are playing with peoples savings and livelihoods.

Now Philip Lowe seriously is a piece of work, the RBA did there own modeling back in 2018 and knew that a 1% move in interest rates would increase the housing market by 30%. So when Covid hit even tho the Australian housing market was cooling off he decided to cut rate to inflate the housing market more. So the Australian housing market went on a rampaging move up increasing another  22%, with cheap money around why not.

So now we come to the part where the music has stopped and there are no chairs to sit on , so everyone is contemplating heading for the exit doors?

Problem is that what they paid for the property they can't get there money back, those with high LVR are screwed with rates going up and being told to pay up?

Yes we hear the shit from the media about talk to your bank about helping you out during this tough time.Yes they do help you out let me tell you, first you get a major credit downgrade, then you told the best thing to do is sell the property and then your told that the residue we can tailor a loan for you to pay the bank off. So in the end you sell your house you have no where to live and you still owe money to the bank, oh I forgot you did pay mortgage insurance too.

This is what 630,451 mortgage holders are facing, all thanks to people who believed the Governor and his comments.

The real estate agents will tell you its tough to sell at the moment unless you reduce the price and we will do the best we can. 

Also note that for every 1% point rise in rates its a 25% decrease in property prices too..

So where is the accountability from the central banks for causing inflation?

That right there is none, blame Russia for oil prices and inflation but not the central banks for flooding the system with money supply. Now they caused inflation we have to tighten money and everyone who borrowed money is screwed, yes screwed!!! You will end up divorcing due to money issues, and yet everyone will say that it was all your fault but not the central banks for setting people up. Unfortunately the education system has a hell of a lot to answer for too as it doesn't teach money management. People have no idea how to manage money, which is the most important think in life. Everyone can go to work and make money that's great but can you manage it ? the answer to that is 85% can't but won't admit it.

There are people who enjoy work and are workaholics, like myself but there are other in there 60's and 70's who still have to work, because they have awesome skills at managing money. Think about it people.

Again make sure you have money set aside, the way this is playing out we will be able to buy a street for the same money as a house in 2021 in the not too distant future.