Interest Rates

[Badger]

Hi Badg,

Posting your usual cheerfull point of view today I see.

Absolutly, and here I was thinking it was just common sense...

Any how I hear the cheerful investors in Blue Clip and Hangover and any other amount of ponzi schemes, are perhaps not so cheerful these days...

[shanecarruthers]

It must be hard to get out of bed with a negative outlook like that.

Cheerup things will improve

Shane
Nexus Property Group

[Badger]

Well I guess that's up to the individual, and how they perceive debt as you have put it. There is of course bad and good debt

Warren Buffet "Be fearful when people are greedy and be greedy when people are fearful"

Shane.

Shane lives at www.nexusproperty.co.nz

Indeed but for every one who thinks similiar to me theres 100 that think similiar you, so my opinions shoudnt be threat eh?

I see even Buffets been hammered, however look at what hes buying, any real estate in there?

[Badger]

It must be hard to get out of bed with a negative outlook like that.

Cheerup things will improve

Shane
Nexus Property Group

So far away in assesment of matching words to some one you dont know its amusing...

[shanecarruthers]

I think Warren will be ok, being the worlds richest man and all

Smart investors buy when the market is busting or at a low and sell when it is booming or high.

I would have thought that would make www financial sense

[tpr2]

Hi Badger

The reality is that yes some institutions are deleveraging because they have too much and then there are others who are actively going out and borrowing money so at the end of the day each person or business is different and therefor what they do themselves may not exactly be what others should or could be doing.

For example if you had say 1 IP and the capacity to get a nother one now whilst still keeping your overall LVR below 60% why wouldn't you go out and get some of these bargains.

On the other hand if your leveraged up to the eyeballs and struggling to meet payments then you certainly should not be buying more, you should be deleveraging.

I like vanilla ice cream. My son likes chocolate ice cream.

So I eat vanilla and he eats chocolate.

[Errol]

Any how I hear the cheerful investors in Blue Chip and Hangover and any other amount of ponzi schemes, are perhaps not so cheerful these days...

But those who were careful and didn't will be enjoying our late summer sunshine and smiling

[shanecarruthers]

Well put Terry

It totally depends on you situation.

Shane

[Badger]

I think Warren will be ok, being the worlds richest man and all

Richest investor may be, but there are wealthier entities around than him.

Smart investors buy when the market is busting or at a low and sell when it is booming or high.

...apparently so, yet I dont see the bottom as being in and printing money dosnt address the underlying fundamentals especially as far as resources are concerned, growth economics needs a never ending supply...

I would have thought that would make www financial sense

Havn't read much there saying the bottom is in quite the contrary actually

[Badger]

But those who were careful and didn't will be enjoying our late summer sunshine and smiling

That would depend on if your stuck on a fixed income or not

[Badger]

Hi Badger

The reality is that yes some institutions are deleveraging because they have too much and then there are others who are actively going out and borrowing money so at the end of the day each person or business is different and therefor what they do themselves may not exactly be what others should or could be doing.

I disagree, those seeking credit have become used to a system operating on perpetual debt, I experienced this scenario whilst being a self employed builder always owed and owing money...

Before easy credit most business worked on a 3 month cash positive float. Private individuals were recommended to keep a 3 month cash balance on hand to account for unexpected events, such as losing your job.

The only business thats different is banking they dont have to cover there liabilities at the end of each month, you do.

For example if you had say 1 IP and the capacity to get a nother one now whilst still keeping your overall LVR below 60% why wouldn't you go out and get some of these bargains.

Id be wondering about how many unemployed people may be around to make it viable, and just how long low interest rates will last 1, 2, 3, years or perhaps 6 months, so far no politician has explained where the magical resources are arriving from for more growth, that is something else Id be looking at to make things fesible in the long run not just for next week...

On the other hand if your leveraged up to the eyeballs and struggling to meet payments then you certainly should not be buying more, you should be deleveraging.

I like vanilla ice cream. My son likes chocolate ice cream.

So I eat vanilla and he east chocolate.

I like both. Ice cream melts when the heat is on though.

[tpr2]

Actually so do I badger, I like strawberry too ....hmmmm best not get onto the topic of ice cream because there are so many flavors and I like most of them....id didn't like the pea and spinach ice cream Rebecca made though for some reason.

[Badger]

Well alls good then since fonterra have no shortages at the moment in raw ingrediants

[tpr2]

And there raising was over subscribed. Oh yeah that's a loan isn't it

[essence]

ASB & Bank Direct put up rates up

...

3 year rate up to 6.05%
4 year rate up to 6.3%
5 year rate up to 6.5%

Bank Direct
3 year rate up to 6%
5 year rate up to 6.2%

Also noticed that some of the second tier lenders are starting to put up their 6 month/1 year rates.