this post was submitted on 03 Jul 2023
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[โ€“] [email protected] 4 points 1 year ago (1 children)

I'm not a finance person either, just a suffering mortgage holder.

I still don't see how raising rates actually helps curbs inflation, since our inflation is not actually demand driven right now.

Just fucking say we're in a recession. We haven't had one in like 30 years (someone can correct me). Sometimes a temporary reset is needed.

[โ€“] [email protected] 5 points 1 year ago (1 children)

Didn't even have one in 08? Or was that a small one? But yeah it just feels like they're skirting around the R word. Like I'd rather just be like "so we're in a recession" instead of what's happening now.

[โ€“] [email protected] 6 points 1 year ago (1 children)

From memory we avoided the '08. We were one of the few countries that didn't have an official one.

The R word will create a drop in the share market, which will (most likely) result in job losses and similar.

Somehow our economy is still be propped up right now (construction and exports maybe?)

[โ€“] [email protected] 3 points 1 year ago (1 children)

Ahh okay. I mean makes sense, didn't KRudd give out money TO avoid a recession? I remember mum giving me $50 and at the time I think I bought a DVD or music from Sanity. Those were the days.

I think exports are our biggest money maker. Wouldn't be surprised if construction is too.

[โ€“] [email protected] 3 points 1 year ago

A lot of construction is gov funded, and that's going to end at some point (or take a long pause). There's been a heap of investment into infrastructure, which is fantastic, but needs to be paid off eventually.

Residential construction is still going, but with house prices still being high and rates being high, that might dip as well.