After yet another month of indecision it’s clear that the RBA have cemented their heads firmly in the sand. Briefly, here’s my analysis of why their interest rate strategy is NOT working…
[transcript]I’m Kevin Young and I’m not happy. RBA are at it again. They raised rates when we had 4.3% unemployment and they killed it. It went up 50%, so we’re now sitting on 6.5. What are they doing now to the construction industry? They said, “We need construction to replace the jobs lost in the mining sector.” That happened. Investors flooded into the market to take them up on their offer. Whoa! They’ve changed their mind now, too many investors who are mum and dad’s. They completely are ignorant of the fact that mum and dad’s buy only completed stock, not off the ground.
What’s going to happen if you’re a builder? You’re not going to build your next building, are you? You’re not going to employ more people. Property prices are going to go up because of the banana story.