It's the economy, stupid!

 
  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
The news just gets better and better: ASX briefly dips below 5,000 this morning before recovering slightly to 5,100 but the Aussie battler has plunged to US$0.626 after having started the year at close to US$0.70 - we've lost more than 11% of the value of our dollar in a few short months.

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  RTT_Rules Oliver Bullied, CME

Location: Dubai UAE
The news just gets better and better: ASX briefly dips below 5,000 this morning before recovering slightly to 5,100 but the Aussie battler has plunged to US$0.626 after having started the year at close to US$0.70 - we've lost more than 11% of the value of our dollar in a few short months.
don_dunstan
My employer is planning to capitalise on the downturn and initiate a few capital projects, including expansion signing contracts at lower prices and crashed currencies prior to things returning to normal.
  RTT_Rules Oliver Bullied, CME

Location: Dubai UAE
Record low interest rates are working their way through to rates for savers: via Banking Day;

NAB’s UBank is the early mover on deposit rates, reducing the “Ultra bonus” rate by 25 bps yesterday.

This takes the bonus saver rate on UBank’s premium savings product to 1.85 per cent, more than 20 bps better than the rate NAB pays on a similar product under its main brand.

NAB’s move represents almost the only reduction in at call rates so far since the RBA cut the cash rate by 25 bps on Tuesday, at least as monitored by the comparison service InfoChoice.

Anyone who thought they could live off the interest of their savings is presently in a world of pain; many bank accounts aren't even paying one percent and its likely they'll go even lower than that soon.
The so called poor on the aged ension would have to have a million in the bank to earn the equivalent of the aged pension. Where are all these working poor Don?
Can you rephrase the question so it makes sense - I'm not sure what you are asking.

It would be possible to have a million dollars in a pension fund and to live off the interest - and indeed many retirees in the past have tried to live off the interest of their superannuation (and succeeded when retail interest rates were high). But in the current environment it isn't really feasible at retail rates of less than two percent, that's the only point I'm trying to make.
don_dunstan
If you have $1m in cash in the bank on retirement at age 65, you have $50k a year income for 20 years (age 85 a few years beyond the median life expectancy) without factoring in any interest or inflation.

Considering some at age 65 has typically no children to fund, no mortgage, no work related expenses, no need to save for retirement, they get alot of activities and services cheaper than rest of us and that around 40-45% of the population live off less than $50kpa raising a family at the same time, most will be just fine. They also have their home to cash in on if needed as well, likely another $0.5M of better.

Alternatively there is a long list of low risk cash Managed Funds with the various banks offering 4-6%pa return which will enable them to live off the $1M to world record age of death.

From my casual observation, the biggest threat to retiree's standard of living is not near zero returns on TD's, its all too often family leaching off those who have done the right thing.
  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
Noticed only a few minutes ago that the AU$ is still sinking like a stone - US$61.8 cents now, a drop of more than 12% since the start of the year.

That's going to really whack us with the increasing price of imports soon. This is turning into a real 'black swan' event for the Aussie economy.
  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
The ASX loses another $100,000,000,000 this morning and the Aussie dollar keeps falling - this time to US$0.609. That now makes it a fall of 13% since the start of the year - that's gunna hurt.

Has anyone else heard that China is threatening the United States with no more medications or medical equipment unless they open their borders to Chinese people again? I have a feeling that this disease will mark the death of globalisation - we've exposed ourselves to all sorts of problems by being so reliant on one single trading partner and now it's all coming back to bite us.
  justapassenger Minister for Railways

Good news for exporters though.

Once the COVID-19 crisis is over, the government should look to keep the dollar low so we can trade our way out.
  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
Good news for exporters though.

Once the COVID-19 crisis is over, the government should look to keep the dollar low so we can trade our way out.
"justapassenger"

And in the meantime it will make our local manufacturing industries (cars, consumer goods) really competitive. Oh, wait...
  wobert Chief Commissioner

Location: Half way between Propodolla and Kinimakatka
Kevs back, and this really is a good article

https://www.theguardian.com/commentisfree/2020/mar/16/the-governments-coronavirus-crisis-approach-is-go-late-go-half-measures-and-go-to-hillsong#comment-138960095


Kevin tends to annoy me a bit at times, but this time he's right on the money.
  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
Kevs back, and this really is a good article

https://www.theguardian.com/commentisfree/2020/mar/16/the-governments-coronavirus-crisis-approach-is-go-late-go-half-measures-and-go-to-hillsong#comment-138960095


Kevin tends to annoy me a bit at times, but this time he's right on the money.
"wobert"

No - Kevin is annoying ONE HUNDRED PERCENT of the time and he's opinionated and almost never right. He craves the attention that he used to have and tweets/writes all the time what SHOULD have been done - because he KNOWS - because he's one of the world's leading intellectuals (speaks Mandarin you know...).

Spare me.
  wobert Chief Commissioner

Location: Half way between Propodolla and Kinimakatka
Were you looking in the mirror when you wrote that?Laughing
  lkernan Deputy Commissioner

Location: Melbourne

No - Kevin is annoying ONE HUNDRED PERCENT of the time and he's opinionated and almost never right. He craves the attention that he used to have and tweets/writes all the time what SHOULD have been done - because he KNOWS - because he's one of the world's leading intellectuals (speaks Mandarin you know...).

Spare me.
don_dunstan
Pot calling the kettle black.
  michaelgm Chief Commissioner

Kevs back, and this really is a good article

https://www.theguardian.com/commentisfree/2020/mar/16/the-governments-coronavirus-crisis-approach-is-go-late-go-half-measures-and-go-to-hillsong#comment-138960095


Kevin tends to annoy me a bit at times, but this time he's right on the money.

No - Kevin is annoying ONE HUNDRED PERCENT of the time and he's opinionated and almost never right. He craves the attention that he used to have and tweets/writes all the time what SHOULD have been done - because he KNOWS - because he's one of the world's leading intellectuals (speaks Mandarin you know...).

Spare me.
don_dunstan
Wow Don, that really is lead with your chin, scripted perfectly.
  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
Were you looking in the mirror when you wrote that?Laughing
"wobert"

I don't speak Mandarin... and I don't have the temerity to tweet Scott Morrison all the time with advice on how to run the country (even though my own period running the country was so p*ss poor it led to my own party sacking me).
  RTT_Rules Oliver Bullied, CME

Location: Dubai UAE
The ASX loses another $100,000,000,000 this morning and the Aussie dollar keeps falling - this time to US$0.609. That now makes it a fall of 13% since the start of the year - that's gunna hurt.

Has anyone else heard that China is threatening the United States with no more medications or medical equipment unless they open their borders to Chinese people again? I have a feeling that this disease will mark the death of globalisation - we've exposed ourselves to all sorts of problems by being so reliant on one single trading partner and now it's all coming back to bite us.
don_dunstan
I was kind of hoping it would drop below 60c sometime this week. Almost 1:2 with the AED, who'd a thought, when we moved here it was 1:4.

All Ords approaching 5000 points, for those with a nice pair, the time is approaching to invest.
  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
...

All Ords approaching 5000 points, for those with a nice pair, the time is approaching to invest.
"RTT_Rules"

Let us know how you go catching that falling knife... chop chop chop.

AU$ has recovered slightly to 61.4 cents but they're saying the RBA will now have a crisis meeting and cut official rates to 0.25%, probably by Thursday. First time they would have done such a thing since 1997 apparently.
  Groundrelay Chief Commissioner

Location: Surrounded by Trolls!
The ASX loses another $100,000,000,000 this morning and the Aussie dollar keeps falling - this time to US$0.609. That now makes it a fall of 13% since the start of the year - that's gunna hurt.

Has anyone else heard that China is threatening the United States with no more medications or medical equipment unless they open their borders to Chinese people again? I have a feeling that this disease will mark the death of globalisation - we've exposed ourselves to all sorts of problems by being so reliant on one single trading partner and now it's all coming back to bite us.
don_dunstan
Only two weeks back the advice was not to sell. Bad news for anyone approaching retirement. Back in 2008 term deposits returned 8%. No such fallback now!

Don, reality check. Globalisation isn't going anywhere. Once this thing has worked its way through the rest of the world it will be business as usual.
Rewind to the GFC. 'Too Big to Fail'. What happened to the US banks? Who went to gaol? Who just got richer?
  RTT_Rules Oliver Bullied, CME

Location: Dubai UAE
...

All Ords approaching 5000 points, for those with a nice pair, the time is approaching to invest.

Let us know how you go catching that falling knife... chop chop chop.

AU$ has recovered slightly to 61.4 cents but they're saying the RBA will now have a crisis meeting and cut official rates to 0.25%, probably by Thursday. First time they would have done such a thing since 1997 apparently.
don_dunstan
What, you didn't buy shares during the big dip during the GFC?
  RTT_Rules Oliver Bullied, CME

Location: Dubai UAE
The ASX loses another $100,000,000,000 this morning and the Aussie dollar keeps falling - this time to US$0.609. That now makes it a fall of 13% since the start of the year - that's gunna hurt.

Has anyone else heard that China is threatening the United States with no more medications or medical equipment unless they open their borders to Chinese people again? I have a feeling that this disease will mark the death of globalisation - we've exposed ourselves to all sorts of problems by being so reliant on one single trading partner and now it's all coming back to bite us.
Only two weeks back the advice was not to sell. Bad news for anyone approaching retirement. Back in 2008 term deposits returned 8%. No such fallback now!

Don, reality check. Globalisation isn't going anywhere. Once this thing has worked its way through the rest of the world it will be business as usual.
Rewind to the GFC. 'Too Big to Fail'. What happened to the US banks? Who went to gaol? Who just got richer?
Groundrelay
Retirement, not an issue, your nest egg is to last 25 -30 years, not spend it all in one month. Shares will bounce back with time, like they always have in the past. Maybe buy some more with your final pay check.

Should the shares not bounce back, well you have bigger issues than this.
  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
Groundrelay: No, there's no such thing as those sorts of exorbitant interest rates now - RTT_Rules still says you can get safe-as-houses managed fund that pay 4-8 percent. Not sure if that's possible in this day and age.

As for the globalisation thing, the virus might be a beneficial thing in terms of slowing consumerism down - forcing our government to re-examine this stupidly of relying entirely on one trading partner for everything. Where's our diverse economic base to help us survive a crisis like this? Its certainly going to end up being a year-long thing by the looks of it.

AU$ back down to $0.607 tonight, showing no signs of slowing down. Should the RBA really be cutting on Thursday (if that's what they're going to do at this emergency meeting?) as it could make the dollar situation much worse - it's in nobody's interests to have an Aussie dollar in free-fall.
  RTT_Rules Oliver Bullied, CME

Location: Dubai UAE
RTT_Rules still says you can get safe-as-houses managed fund that pay 4-8 percent. Not sure if that's possible in this day and age.
don_dunstan
Do you want me to post AGAIN a list of actual cash orientated funds hosted by the various banks that are doing this with their month by month data?

Or should I just let you continue to waffle on ?
  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
...

All Ords approaching 5000 points, for those with a nice pair, the time is approaching to invest.

Let us know how you go catching that falling knife... chop chop chop.

AU$ has recovered slightly to 61.4 cents but they're saying the RBA will now have a crisis meeting and cut official rates to 0.25%, probably by Thursday. First time they would have done such a thing since 1997 apparently.
don_dunstan
What, you didn't buy shares during the big dip during the GFC?
"RTT_Rules"

Off you go then - put your life savings on BLACK and let the roulette wheel have a spin.

D'oh. Should have picked red.
  RTT_Rules Oliver Bullied, CME

Location: Dubai UAE
...

All Ords approaching 5000 points, for those with a nice pair, the time is approaching to invest.

Let us know how you go catching that falling knife... chop chop chop.

AU$ has recovered slightly to 61.4 cents but they're saying the RBA will now have a crisis meeting and cut official rates to 0.25%, probably by Thursday. First time they would have done such a thing since 1997 apparently.
What, you didn't buy shares during the big dip during the GFC?

Off you go then - put your life savings on BLACK and let the roulette wheel have a spin.

D'oh. Should have picked red.
don_dunstan
So your only concept of investing is to put your nest into a 2:1 odds investment?
  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
AU$ hovering around US0.601 at the moment - you might get your wish for an Aussie dollar below sixty US cents.
  RTT_Rules Oliver Bullied, CME

Location: Dubai UAE
AU$ hovering around US0.601 at the moment - you might get your wish for an Aussie dollar below sixty US cents.
don_dunstan
Not a wish, rather expectation of the current global issue.

However I'll take it as it comes.
  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
Bingo! The AU$ is trading at US$0.599 this morning, the lowest its been since 2003; the ASX has also lost 200 points this morning and is now down to 5,100.

Biggest losers on the stock exchange include Qantas (of course), Afterpay, Worley Engineering and Woodside.

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