Monthly Archives: January 2010

Problem grows

More depressing economic developments:

The central bank will almost certainly raise the official interest rate next week

Okay, so it’s good news for:

  • investors (who’ll have less competition from homebuyers and who will be able to promptly pass the rate rise on to their tenants);

  • the rich; and
  • people who prey on social unrest.

But it’s very bad news for:

  • homeowners with mortgages (whose repayments will rise);

  • renters (whose rents will rise);
  • those who’d like to buy a house to live in (who will be even less able to compete with investors);
  • parents (who want their adult offspring to finally move out); and
  • the community as a whole, which benefits from the existence of a healthy middle-class.

Another step widening the gap between rich and poor. Well done, Australia.