When Chinese eat bats.....

rhino wrote on Feb 28^th, 2020 at 9:41am:

Correction, was the 90’s our “recession we had to have” (quoting Paul Keating)

I remember that year it really took hold in 1990z
Interest rates were up to 16-18% at June and by December went down to 8%
Too late for the drastic interest rate drop, a lot of people lost their shirt off their backs already.
Businesses suffered, many were merely working just to pay the interest in loans, , shops were empty by the scores, and every 2nd house was “mortgagee auction” !

Many that survived said they will never trust Banks or loans again.
But alas, that was my generation that learnt to be careful, there’s always new generations to bamboozle along the way.
Oh let me look, yep, last time I see interest rates below 4% and property prices are ridiculously high!
It worries me for many of those that have huge borrowings.

We have booms and busts all along history, think it won’t again?
Look what a little invisible virus can do!

My parents gen were known as the frugal generation, and any wonder, they went through “the depression” and war.
They learnt to be wary.
One had to go through it to understand it.
Hubby and I are too frightened to get into debt now.
We would rather hold back and that, is the way a lot of baby boomers must feel, we make up for a almost quarter of our Aussie population, and if we hold back, what happens to the financial state of affairs for all?

That’s why car plants close down, shops such as big w closing down etc etc
We got enough stuff, and the newer gens like minimalism.

What can will scumo kick down the road again to stop house prices from collapsing ? This I got to see LOL

Sir lastnail wrote on Feb 28^th, 2020 at 10:35am:




oh look rusty has found something to smile about!

Captain Caveman wrote on Feb 28^th, 2020 at 5:19pm:
The problem is these people borrowing are who kept the economy afloat.

rhino wrote on Feb 28^th, 2020 at 5:43pm:




That is why I feel for them. I have friends that stand to lose the lot because they wouldn't listen to some simple methods. My wife is a money person. She advised one couple and now they don't talk to us. All she was saying is "pay your house an investment unit off as quick as you can"...not the full term  And definitely not interest only.


We purchased our house. Went without everything and smashed out the mortgage. We have done the hard yards for fear of another looming 90's. I hate borrowing. I spend but I have a healthy income. If I lose that income, we will not lose.

What got us however was the interest rates dropping so far. While they are down so low is the time to wack that mortgage.....but people aren't doing this. Instead they borrow more. That is not good.


I have always distrusted the banks. They are evil.

rhino wrote on Feb 28^th, 2020 at 5:40pm:


The 80s is an interesting era, early 80s property prices boomed or doubled.
By later 80s it became a boom time for lending and people were warned not to borrow, not to go into it too deep. But many didn’t take heed of that advice.
Remember this...

"By 1990, no Australian child will be living in poverty," the then-prime minister told Labor's election campaign launch on June 23, 1987.

1987 global share market crashed down 40% but not real estate at that point in time.
It was late 89 the variable interest hit an all time high @ 17%.

Then the shyte started to hit the fan by 1990 and was awful for a long time during the 1990s.
The 80s were up and down but the 90s were just down. I think Victoria was hit hard because people from NSW come down to buy stuff and says to us “everything in Victoria seems to be for sale”.

Banks lending money was still easy, as we found out.
We went the opposite of everyone and borrowed to buy houses to fix, rent and create our income. It was positive gearing at that point.
I had a formula worked out. We easily borrowed over that course, $1,020,000 @ 6% interest only.
If it wasn’t for easy lending in the 1990s to mid 2000s we could not have done it.
Now, we can’t borrow even though we have equity, the banks have really tightened up.
So if anyone thinks there will be bargain houses coming up due to some impending recession because of this virus, think again, the banks won’t lend you money to buy, unless you are earning big money and have job security and equity with no other debts you may be currently paying.