Why is everyone talking about Interest Rates? | BTN High

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  • เผยแพร่เมื่อ 26 ม.ค. 2025

ความคิดเห็น • 35

  • @PaddyAU
    @PaddyAU ปีที่แล้ว +11

    Reality interest rates need to rise substantially more. $800 billion printed by the RBA. Low rates since gfc have caused massive Bubble in all asset classes

    • @darkhorseman8263
      @darkhorseman8263 ปีที่แล้ว

      Fake News. 60% of inflation is price gouging.
      What we need to do is put a windfall profits tax on everything, and surge taxation on the rich.
      Otherwise they'll use all that excess capital from tax cuts to take all our property.

    • @DavidDel88
      @DavidDel88 ปีที่แล้ว

      Maybe but there are other ways to handle it. Look it up. There’s forced savings schemes and taxes that could come back to people not just feed the banks.

    • @MrGaZZaDaG
      @MrGaZZaDaG ปีที่แล้ว

      Money printed for COVID policies and bad stimulus packages.
      Now we all get slugged with crazy interest rates and the only winners are the banksters and big pharma!!!

  • @GlasgowCelticBhoy
    @GlasgowCelticBhoy ปีที่แล้ว +4

    Although I don't take pleasure in seeing anyone lose their home, my pity well is pretty much dry. Unfortunately, some folk didn't take personal responsibility for what they were borrowing, living in the moment of ultra low interest rates without stress testing themselves. Financial literacy is appalling in this country.
    So now we have ridiculously inflated house prices that have ultimately locked a sizeable chunk of the younger generation out of the market - many of their hopes and dreams are dashed. And those that FOMO'd in played their part in creating this mess. They are now the ones screaming at the RBA as they struggle to afford what they bought. Maybe some self-reflection is required instead?
    We need this bubble to burst, we need houses to be a lower multiple of peoples incomes again. If high interest rates is the medicine that is required, then so be it.

    • @DavidDel88
      @DavidDel88 ปีที่แล้ว

      It won’t be lower house prices. We simply don’t build enough or utilise empty spaces for those in need.

    • @GlasgowCelticBhoy
      @GlasgowCelticBhoy ปีที่แล้ว +2

      @@DavidDel88 I absolutely agree with the housing stock is a big issue in Australia. And that we've turned housing into a commodity rather than a place to live.
      But if lending tightens as people can't afford the higher interest rates, and also as long as government doesn't interfere, then I can assure you that house prices will fall by some amount. Not saying a crash, but certainly a correction from that COVID bubble.

    • @healthmarket6224
      @healthmarket6224 ปีที่แล้ว +2

      Totally agree. Tired of hearing people blaming the RBA for their own stupidity. How about taking responsibility for your own actions? If you can’t survive a 3-4% rise in interest rates, then why did you take on so much debt in the first place? Maybe you should have been more conservative

    • @DavidDel88
      @DavidDel88 ปีที่แล้ว

      @@healthmarket6224 I hear you and I can see where you’re coming from. I was tested to 5% interest repayments when I took out my loan - but there are other ways to beat interest rate rises than just giving it all to the bank and people in general not benefiting in the long term. There are taxes and forced savings which come back to people after beating inflation - who can then spend in the economy. Win - win.

    • @healthmarket6224
      @healthmarket6224 ปีที่แล้ว

      @@DavidDel88 I’m not sure about that. That sounds a bit like kicking the can down the road. We need to go through some pain right now. Higher interest rates will be far more effective at bringing house prices down

  • @michaelandrews4783
    @michaelandrews4783 ปีที่แล้ว +4

    Because housing in Australia is disgracefully highly priced so some can get richer and richer while the rest of us get poorer.

    • @soulsurvivor8293
      @soulsurvivor8293 ปีที่แล้ว +2

      They are well over valued because Howard and Costello thought it would be great to half the Capital Gains Tax, with few restrictions or requirements.
      Combined with Negative Gearing it turned houses into low risk and high return investments at the Taxpayers expense.
      Negative Gearing was a good measure to keep property value and rent prices in line.
      And it worked, the only increases in values and prices occurred in two capital cities. Which was mainly due to low vacancy rates in those cities.
      Negative Gearing and property values were kept in check by indexing the Capital Gains Tax.
      Halving it outright completely ruined the market. We went from an anual income tax revanue loss of a few hundred million a year to tens of billions per year by 2007.
      It's over inflated the property market value and punched a multi billion dollar structural hole in the revanue of the federal budget.
      It's costing us more than the entirety of our welfare system per year and making it impossible for the vast majority of Australians to be able to rent, let alone own their own home.
      Howard & Costello also sold off billions in Government assets, some at well below the value at the time (our Gold reserve), including most of the Public Housing.
      This combined with the GFC and tens of billions per year in lost revenue ment that the Rudd Government was unable to even consider addressing the issue or expand Public Housing.
      Then after nearly a decade more of the Coalition Government doing nothing about it and the billions wasted in their Pandemic response, we have a trillion dollar debt and still have an expanding multibillion dollar hole in annual Government revanue.
      The intrest repayment on the trillion dollar debt alone is insane.
      Honestly, I am just gobsmacked that people still to this day belive Labor are the terrible economic managers.
      Meanwhile the "Great Economic Managers" of the Coalition are the most fiscally profligate (Howard & Costello) and accumulated more debt than we ever had (Abbot, Turnbul & Morrison).
      If you take the sum total of all the debt accumulated since federation to 2013 or even 2019 combined; It would still be less debt than what the Morrison Government left us with.
      It's utterly mind boggling...

  • @joebloggs516
    @joebloggs516 ปีที่แล้ว

    Everyone blaming the RBA for "burying" them but were okay taking maxxed out loans thinking they had the asset. Physically, yes, but owed to the bank. They buried themselves, willingly, in the hope of 20%+ per annum increases! That number in itself rings alarm bells that chime in unison:
    UNSUSTAINABLE

  • @cameronmale83
    @cameronmale83 ปีที่แล้ว

    The explanation of inflation is only for demand pull... There is also cost-push inflation, from externalities, as what we're experiencing. There is a strong argument that the impact of interest rate rises will have limited effect, due to the fact only 33% of household have a mortgage (and rental increases take 6-12months to be felt) and that changes to international trade have restructured the international economy (market concentrations, demographics, re-shoring, near shoring, supply shortages and geopolitical conflict and tensions) in a way that a new era of trade now exists and that inflation will be persistent, despite reduced money supply (growth) - aka stagflation.
    Changes to inflation may be coincidental rather than consequential and may not drop to the 2-3% banding the RBA arbitrarily sets. Like most of economics, we the public only know after the fact and that the RBA has a fantastically terrible record of predicting ANY indicator - wage growth predictions are hilarious.

  • @tikytak21
    @tikytak21 ปีที่แล้ว +1

    Yes ABC covers it so much

  • @starlitelemming6929
    @starlitelemming6929 ปีที่แล้ว +4

    This whole situation is moronic. Record low interest rates pushed house prices up to unaffordability. THAT'S why we can't afford our rent or to buy a house (amongst other things). Interest rates SHOULD be around 5-7%. Of course they were going to rise -- and will keep rising! How about we talk about things that actually matter? Like the fact anyone on a Disability Pension is paying 80% of their income on rent (because Rent Assistance hasn't kept up with rental increases). Or that the lower half of the housing market is still rising, NOT falling in the way that the news constantly reports misleadingly (only the top of the housing market is falling, which is essentially meaningless to the very rich people who own houses in that bracket).
    ABC, how about you stop looking at simplistic and meaningless numbers (eg: median house price, cash rate, unemployment rate) and do some proper research into numbers that actually represent what's hurting people (eg: underemployment, long term unemployment, changes in the bottom of the housing market, regional rents). By ignoring the detail, you miss the entire story.
    As for everyone else, how about revising your primary school arithmetic? If you don't know what "interest" is, you don't deserve to raise children.

    • @thidang6247
      @thidang6247 ปีที่แล้ว +1

      I suspect your comment is aimed at the abc as a whole but you do realise that this is a kid’s show, right?

    • @starlitelemming6929
      @starlitelemming6929 ปีที่แล้ว

      @@thidang6247 - No I didn't. Thanks for pointing that out. Why is it on the News In Depth TH-cam channel?!

    • @thidang6247
      @thidang6247 ปีที่แล้ว +1

      @@starlitelemming6929 That is a good question, considering that there is already a dedicated "Behind the News" channel.

    • @MrGaZZaDaG
      @MrGaZZaDaG ปีที่แล้ว

      No way.
      Wake up, what did you expect? We had global shut downs due to government lockdowns to most sectors when demand has remained the same, therefore prices went up as supply dropped off.
      Then we have governments borrow money to fund COVID policies and vaccination programs.
      Then we have governments creating stimulus packages for those who can't work, house grants and alike.
      And then we have the government in Australia allowing people to access billions of super.
      What did you expect to happen when you keep creating money and pulling money out of areas in a market where GDP has fallen, productivity has fallen and demand is the same.
      It's 110% the reason we have this inflation issue at hand, which was created and caused by poor government policies. Now we all get screwed again from the banks raising interest rates, to battle this inflation.. which is helping no one but the banks. Look at their profits, it's increasing every year regardless of low rates or these higher rates.
      Wake up!

    • @starlitelemming6929
      @starlitelemming6929 ปีที่แล้ว

      @@MrGaZZaDaG - I'm pretty sure demand dropped during the COVID lockdowns. (We're still in the middle of the pandemic, btw.) And the people who most need money to survive are not getting it. Homelessness is far more expensive than removing the cap on Rent Assistance would be (and no, I doubt it would increase rents, because it's such a small percentage of the rental market).
      I agree that there were a lot of dumb decisions made (lowering the fuel excise, allowing unlimited access to superannuation, etc). And there's a lot of companies profiteering (Qantas, the banks, etc). But fundamentally, interest rates are still incredibly low.
      A report about a year ago pointed out that the LNP had been deliberately engineering rises in house prices. I can't remember how exactly, but that seems like exactly the sort of thing you would do when you only care about your rich friends getting richer and we don't care about anyone else.
      Economics can be complex and sometimes counter-intuitive. But it doesn't work the same for a government as it does for a company or again for a household. Governments absolutely can print money and have it improve things for society as a whole -- the obsession with budget deficits is not intelligent.
      Anyway, I'm awake; I just don't think all of what you've said is correct. And I always strive to improve things, not just condemn them.

  • @soknya
    @soknya 7 หลายเดือนก่อน

    are you planning to rob a bank again, Professor?

  • @vchar
    @vchar ปีที่แล้ว +1

    Controlling the inflation is crucially important but the more important thing is life. Everyone needs to live thus they can’t rely on someone who solve the problem by just reading books. The problem solvers need to be more creative and considerate.

    • @robbie3877
      @robbie3877 ปีที่แล้ว

      Certain problems have certain solutions. Idealistic solutions don't always work. Some systems are only balanced with fundamental mechanisms in mind.

    • @darkhorseman8263
      @darkhorseman8263 ปีที่แล้ว +3

      Then surge taxation on the rich. We now know only 25% of inflation is Ukraine. 60% is price gouging.
      Tax cuts for the rich played a role, too.

    • @wolfferoni
      @wolfferoni ปีที่แล้ว +2

      @@darkhorseman8263 Definitely. Big businesses under the liberal govt have been allowed to gain an unfathomable amount of profits and thus, power to influence the government, over the years. The audacity of companies to blame rising consumer prices on the pandemic and the war in ukraine, then make record profits... Taxing the rich would help a hell of a lot. No one needs hundreds of millions of dollars. Imagine that money going back into public and social services. Lessening the inequality divide. Will the labor govt do it? Not likely but I'm hoping they do something, anything, better

  • @detectiveofmoneypolitics
    @detectiveofmoneypolitics ปีที่แล้ว

    Economic investigator Frank G Melbourne Australia 🇦🇺 still watching this very informative content cheers Frank

  • @potapotapotapotapotapota
    @potapotapotapotapotapota ปีที่แล้ว

    if you show 0% interest towards something you will get nothing in return !

  • @robbie3877
    @robbie3877 ปีที่แล้ว

    It needs to be done. Due to inflation and the market conditions