Turtlerock Forum

I just had a look at the exchange rate... EEEK!!

Back to Banana dollars. I'm glad I bought up when I did. At least it's most likely NOT going to be as bad here as in the USA.

Looks like Bush took the ship down with him. The low dollar is great for Aussie exports.

It's going to get a hell of a lot worse than this!

We still have a long way to go down!

Son of Sam wrote:It's going to get a hell of a lot worse than this!

We still have a long way to go down!

Geez, I hope not too much!!
Although a lower mortgage interest rate will be alot nice on my wallet!!

Son of Sam wrote:It's going to get a hell of a lot worse than this!

We still have a long way to go down!

Yeah for sure but at least our banks for now seem to be strong, interest rates in the USA are only 2%, 2 years ago they were even less, I predicted this about 2 years ago, I posted it on gearslutz and they laughed at me, oh well. The whole market was over inflated for a start.

But yeah I do agree things are going to get a lot worse, super annuation has been hammered and will be even worse soon, so anyone retiring now should be crapping thier pants.

Unemployment will go up, living standards will go down for a lot, but us Aussies are a tough bunch and have weathered it before.

Just save and don't spend on things you don't need.

TimS wrote:

Son of Sam wrote:It's going to get a hell of a lot worse than this!

We still have a long way to go down!

Geez, I hope not too much!!
Although a lower mortgage interest rate will be alot nice on my wallet!!

That's it, remember in the 90's interest rates were around 18%. The only reason most of us are exposed now is through super annuation, before compulsory super for the average Joe the market crash meant bugger all really.

heathen wrote:

Son of Sam wrote:It's going to get a hell of a lot worse than this!

We still have a long way to go down!

Yeah for sure but at least our banks for now seem to be strong, interest rates in the USA are only 2%, 2 years ago they were even less, I predicted this about 2 years ago, I posted it on gearslutz and they laughed at me, oh well. The whole market was over inflated for a start.

But yeah I do agree things are going to get a lot worse, super annuation has been hammered and will be even worse soon, so anyone retiring now should be crapping thier pants.

Unemployment will go up, living standards will go down for a lot, but us Aussies are a tough bunch and have weathered it before.

Just save and don't spend on things you don't need.

But I need an atomic squeez box!

The two channel model, actually come to think of it, I need two!

The Aussie dollar has fallen heavily because Australia is one of the world's biggest resources benchmarks. We are a mine for the rest of the world, particularly China. Everyone realizes that even though the Australian dollar is very safe, there is going to be a big downturn in demand for resources if the world goes into recession, so they are selling the AU dollar. The reason we got up to almost parity with the US$ earlier in the year was because of the resources boom, which is now very attenuated. It was bad for our currency to be that high anyway.

Too bad about the MRL tapes I need to buy from the US next week, shouldn't have put it off.... Ouch!

heathen wrote:

TimS wrote:

Son of Sam wrote:It's going to get a hell of a lot worse than this!

We still have a long way to go down!

Geez, I hope not too much!!
Although a lower mortgage interest rate will be alot nice on my wallet!!

That's it, remember in the 90's interest rates were around 18%. The only reason most of us are exposed now is through super annuation, before compulsory super for the average Joe the market crash meant bugger all really.

Yep Heath, I bought my first house in '91 and interest was about 18.2%.
Back then tho, my mortgage was $110G only!!
I wish it was only that today!!!

Thirteen wrote:The Aussie dollar has fallen heavily because Australia is one of the world's biggest resources benchmarks. We are a mine for the rest of the world, particularly China. Everyone realizes that even though the Australian dollar is very safe, there is going to be a big downturn in demand for resources if the world goes into recession, so they are selling the AU dollar. The reason we got up to almost parity with the US$ earlier in the year was because of the resources boom, which is now very attenuated. It was bad for our currency to be that high anyway.

Too bad about the MRL tapes I need to buy from the US next week, shouldn't have put it off.... Ouch!

Ah yes but when a rebuild is needed through natural disaster or man made disaster Australia is there. Also if we can get over this drought we can feed the world.
Lets shut our borders and tell the world to get well and truly. Come brothers, to arms!

nIC

Aearth wrote:

Thirteen wrote:The Aussie dollar has fallen heavily because Australia is one of the world's biggest resources benchmarks. We are a mine for the rest of the world, particularly China. Everyone realizes that even though the Australian dollar is very safe, there is going to be a big downturn in demand for resources if the world goes into recession, so they are selling the AU dollar. The reason we got up to almost parity with the US$ earlier in the year was because of the resources boom, which is now very attenuated. It was bad for our currency to be that high anyway.

Too bad about the MRL tapes I need to buy from the US next week, shouldn't have put it off.... Ouch!

Ah yes but when a rebuild is needed through natural disaster or man made disaster Australia is there. Also if we can get over this drought we can feed the world.
Lets shut our borders and tell the world to get well and truly. Come brothers, to arms!

nIC

The consensus among pundits is that if there is a big crash, that China will start a large scale infrastructure building program to keep it's internal economy running, it is a good way to employ lots of people. That will be very good for our resources sector.

Also what is unusual at the moment is that while the banks overseas are getting run on, the Aussie banks are seeing dramatic increases in deposits, I guess because people are getting out of shares and putting their money in the bank at 8% interest. It is strange though, Aussies seem to trust the banks with their money, but not to hold bank shares, which have taken a bit of a beating.

Mind you, it's a very sad state of affairs when a muso's name ( rapper '50 cent') is worth more than our dollar. :(

just trying to add a bit of light humour to the current gloom

TimS wrote:

heathen wrote:

TimS wrote:

Son of Sam wrote:It's going to get a hell of a lot worse than this!

We still have a long way to go down!

Geez, I hope not too much!!
Although a lower mortgage interest rate will be alot nice on my wallet!!

That's it, remember in the 90's interest rates were around 18%. The only reason most of us are exposed now is through super annuation, before compulsory super for the average Joe the market crash meant bugger all really.

Yep Heath, I bought my first house in '91 and interest was about 18.2%.
Back then tho, my mortgage was $110G only!!
I wish it was only that today!!!

Yeah I just knocked my bloody house down, hope the buiilders are still gonna build the new one, meant to start in about 12 working days, hopefully. But yeah the interest rate drop is a good sign, will save us a bit as we hav'nt started repayments yet.

Thirteen wrote:Also what is unusual at the moment is that while the banks overseas are getting run on, the Aussie banks are seeing dramatic increases in deposits, I guess because people are getting out of shares and putting their money in the bank at 8% interest. It is strange though, Aussies seem to trust the banks with their money, but not to hold bank shares, which have taken a bit of a beating.

The major bank deposit increase is also coming from smaller Credit Union & Building Society customers who are removing their savings and transferring to the big 4. The government will need to guarantee deposits for this to stop.

Australia has a two fold problem. Whilst commodities will slow due to lower world demand, our consumers will stop spending due to high household debt. I think we are all headed for a prolonged downturn, recession, and, until some confidence is restored, batten down the hatches.

Just my 2 cents.... Now only worth 1.2 US cents and falling.

Peter

tunetown wrote:

Thirteen wrote:Also what is unusual at the moment is that while the banks overseas are getting run on, the Aussie banks are seeing dramatic increases in deposits, I guess because people are getting out of shares and putting their money in the bank at 8% interest. It is strange though, Aussies seem to trust the banks with their money, but not to hold bank shares, which have taken a bit of a beating.

The major bank deposit increase is also coming from smaller Credit Union & Building Society customers who are removing their savings and transferring to the big 4. The government will need to guarantee deposits for this to stop.

Australia has a two fold problem. Whilst commodities will slow due to lower world demand, our consumers will stop spending due to high household debt. I think we are all headed for a prolonged downturn, recession, and, until some confidence is restored, batten down the hatches.

Just my 2 cents.... Now only worth 1.2 US cents and falling.

Peter

On top of that, it seems that there is a lot of foreign money coming in to our largest banks too, this despite the lack of a government guarantee.

The good news is that there are some good deals around at the moment and better to come.
eg. Studios with great gear for $450 per 10hr day.

nIC

Ha, I've been travelling OS for a bit under a month with no TV or phones. Just got back on the weekend. The dollar was close to 88 when I left. Glad there were no places I could charge up big on the credit card.

with the dollar being so low, you guys should be selling yourselves to international artists to come and record with you. The amount they have "saved" with the dollar dropping could easily cover their airfares, so it's a win-win!