This week's decision by the Reserve Bank of Australia to keep cash rates on hold at 4.25% is the same thing as throwing a wet fish at the vast majority of home loaners in Australia. The word 'disappointing' hardly describes the suffering of so many families who are already struggling to reach the end of the month. Under these circumstances it is not surprising that the retail industry is in chaos. People are too afraid to spend their hard-earned cash.
For some sectors of the finance industry this is an opportunity to capture more business (and that is fair enough).
But I don’t wear the mortgage lenders’ argument that the Reserve Bank of Australia is waiting for the latest ‘domestic data’ before doing the right thing. On top of that I don’t think for one moment that home loaners are complacent about their mortgages. A much better phrase would be “scared to death.”
The Chinese use two brush strokes to write the word crisis. One brush stroke stands for danger; the other for opportunity.
And as JFK famously commented, “in a crisis beware of the danger, but recognize the opportunity."
View the original article by Larry Schlesinger by clicking here
Tim Mansfield is Founder & CEO of Sydney-based PrimePropertyBuyer