GOLD 0.21% $1,222.9 gold futures

RBA/BANKS

  1. 16,143 Posts.
    The RBA has been talking about using Macro Prudential techniques to bring the housing bubble under control and then they go and drop interest rates which we all know will only fuel this housing bubble.
    Why did they do that?

    It is my opinion the RBA is subservient to the Big Four Banks.
    The Big Four Banks have 80% of their business in the Australian property market.
    As soon as the building approvals dropped 2 months in a row the RBA drops interest rates to protect the banks.
    IMO it is that simple, the Big Four have glutted themselves on mortgage loans and they are vulnerable to a slow down in Building approvals and an increase in unemployment.
    The RBA and the big four don't give a rats a about anybody but their own welfare.

    Just my opinion of course but an opinion guided by watching the housing market for a long time in Australia.
    The unit market is the one to watch as it is always the first to tank and it has been coming off in the last few months.
    Give it a year and there will be units everywhere cheaper than they were built for. Ive been through this before personally and I can see the signs it will happen again soon.
 
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