27
submitted 2 days ago by brisk@aussie.zone to c/australia@aussie.zone

Guardian Economist Greg Jericho shows - with interactive graphs - how the RBA's interest rate policies have missed the mark and depressed Australian living standards in an unprecedented way.

you are viewing a single comment's thread
view the rest of the comments
[-] Salvo@aussie.zone 3 points 2 days ago

The problem is that the RBA increased interest rates to discourage individuals from borrowing more. The problem is that We had already borrowed so much that the increase was crippling.

They should have only increased rates on new loans and reduced rates on existing loans.

[-] ryannathans@aussie.zone 6 points 2 days ago

That's an interesting concept but not one the RBA has any control over. You'd have to freeze old loans somehow too to prevent people redrawing and consolidating debt into old facilities? And get all the banks to adopt it? What about international debt? Don't think would be doable in practice

[-] zero_gravitas@aussie.zone 5 points 2 days ago

In the US, the vast majority of mortgages have a fixed rate over decades.

90% of mortgages are fixed-rate for 30 years according to this page: https://www.mortgagecalculator.org/helpful-advice/how-many-years-mortgage-loan.php

I don't know the details of how that works, but yeah, it's possible for the vast majority of home borrowers to be on fixed rates.

[-] hanrahan@slrpnk.net 3 points 1 day ago* (last edited 1 day ago)

I don't know the details of how that works, but yeah, it's possible for the vast majority of home borrowers to be on fixed rates.

Essetially "socalism", In the US Goverments backed Fannie Mae and Freddie Mac, so commercial banks had to compete for loans.

We'd need a government bank to do the same, I think its part of The Greens policy to reestablish one and offer them? but we'd need way more voters to pivot Green, thay seems unlikely, so we're left with the same stupid, repeating the same stupid mistakes... we sold the last Government bank off.

Or legislation and that's never going to happen with ALP/LNP.

[-] ryannathans@aussie.zone 3 points 1 day ago

Fixed rate for the entire term? Fascinating

[-] Aussiemandeus@aussie.zone 1 points 1 day ago

That's a good deal if you get s good deal.

[-] No1@aussie.zone 1 points 1 day ago* (last edited 1 day ago)
[-] Taleya@aussie.zone 4 points 2 days ago

not just the yanks, I have a mate from france I caught up with earlier this week who could not comprehend how a home loan had a variable rate. She thinks we're all insane.

this post was submitted on 21 Nov 2024
27 points (100.0% liked)

Australia

3579 readers
79 users here now

A place to discuss Australia and important Australian issues.

Before you post:

If you're posting anything related to:

If you're posting Australian News (not opinion or discussion pieces) post it to Australian News

Rules

This community is run under the rules of aussie.zone. In addition to those rules:

Banner Photo

Congratulations to @Tau@aussie.zone who had the most upvoted submission to our banner photo competition

Recommended and Related Communities

Be sure to check out and subscribe to our related communities on aussie.zone:

Plus other communities for sport and major cities.

https://aussie.zone/communities

Moderation

Since Kbin doesn't show Lemmy Moderators, I'll list them here. Also note that Kbin does not distinguish moderator comments.

Additionally, we have our instance admins: @lodion@aussie.zone and @Nath@aussie.zone

founded 1 year ago
MODERATORS