51–60 of 316 posts
Inflation is increasing corporate profits, it is not driven or caused by corporate profits.
This is a direct consequence of keeping low interest rates while unemployment is low and inflation is high. It’s Macro 101. You should point your finger at the Central Bank and fiscal policies, not corporations that are acting entirely rationally in the face of good shortages and consumer purchasing power increases. Inflation is increasing corporate profits, it is not driven or caused by corporate profits.
What goods shortages?
There are so many threads here. The reserve bank governor is deeply unpopular in the broader public because of 2021 comments he made about there being no interest rate increases needed until 2024 [1]. As mentioned in the article, many companies are posting record profits, including supermarkets [2] - leaving low and middle income people hurting, and working more hours or side jobs. Those same people also face an adve…
> The reserve bank governor is deeply unpopular Only 30% of people have mortgages, why should the remaining 70% care, many can even put money in savings accounts again after 15 years of them being basically worthless. He never said interest rates wouldn't rise either, he basically said they don't forecast the conditions that warrant a rise won't happen until then. Here's a pro-tip if you took on too much debt under t…
As you stated the right thing to do is to look at interest rates and not overexpose oneself to the effects of inevitable rate changes.
How most people think about it: I can afford the monthly payment and it's cheaper than my rent. Let's do this.
Fortunately banking laws in Australia prevent banks from granting loans to people that they can just barely afford. However despite this most people still don't have any savings or disposable income (When compared to similar "rich" economies, Australia has one of the lowest rates of personal savings in the world.)
The result is that a lot of people will have to cut back and find their lifestyle significantly changed in order to keep their homes.
It's yet another example of the gap that always exists between economic theory and economic practice. In this case, what we have is that every player in the food chain has taken advantage of supply shortage to eke out additional margin along the way. And why not? Your products are in demand and there are buyers who are willing to pay more than the theoretical market price. The actual situation is that even if competi…
Earlier quoted context omitted.
Australia hasn’t had a reserve requirement since the late 80s. They’re largely been phased out globally in favour of capital requirements and open-market operations.
Huh, indeed. I found this on the RBA website. "The Reserve Bank’s reserve requirements are not a Required Reserve Ratio (they are not set as a percent of the financial institution’s liabilities). The Reserve Bank’s reserve requirements are set annually as an AUD amount per financial institution with the aim of ensuring that each institution has sufficient funds to settle AUD transactions after business hours. The amo…
Every company I work with is trying to make up for profit lost over the covid years. Surprise surprise company after company are now posting record profits.
There are so many threads here. The reserve bank governor is deeply unpopular in the broader public because of 2021 comments he made about there being no interest rate increases needed until 2024 [1]. As mentioned in the article, many companies are posting record profits, including supermarkets [2] - leaving low and middle income people hurting, and working more hours or side jobs. Those same people also face an adve…
They've aired several ads like this using children to convince people that NAB is "more than money".
On supermarket profits. I've noticed price-jacking has reached a new level. Seemingly in collaboration with the brands to deceive customers. For example, "50% off dishwasher tablets"... sounds good. But then you see the "normal" price they expect you to believe: $48 for a pack of 32 dishwasher tablets. That's AUD $1.50 per tablet / USD $2.23 per tablet. There's no chance dishwasher tablets cost anywhere near that much to make.
Anti-Corporation dude publishes anti-corp research : Reddit/HN --- Bow, Bow, Bow
It's unbelievably pathetic how smart people can be easily duped as long as it fits their narrative. Yeah, it's the same crowd that feels superior over QAnons
Earlier quoted context omitted.
People who can't afford to buy get stuck with borrowing costs being passed on, anyway, and get trapped in rent spirals. I do agree that some of the criticism of Lowe is undeserved, though.
Rent rises are more the result of extremely low rental vacancies in Australia
Extremely low rental vacancies are a result of?
State governments, local governments, and property development, basically colluding to not build cheap and affordable high density housing.
It's yet another example of the gap that always exists between economic theory and economic practice. In this case, what we have is that every player in the food chain has taken advantage of supply shortage to eke out additional margin along the way. And why not? Your products are in demand and there are buyers who are willing to pay more than the theoretical market price. The actual situation is that even if competi…
Economic theory for at least two centuries has recognised the outsized power of fiscal policy relative to monetary.