Banks and their Refusal to Pass on Interest Rate Cuts
“Between September 2008 and today, NAB has passed on more of the RBA rate cuts than any of the other major banks in Australia - and NAB customers are the ones who have benefited." NAB Statement on Interest Rates, 7 April 2009.
Sounds like they have almost been doing the right thing by their customers right? However the truth is somewhat different. I'm using NAB as an example, firstly because they refused to pass on any of the Reserve Bank's recent 25 basis point cut to the cash rate. But secondly, they happen to be the bank that i have my mortgage with.
One of the things that commentators and even the Federal Treasurer Wayne Swan fail to mention is the rate hikes thrust upon us by the banks in early 2008. These rate rises were in addition and independent to official rises to the cash rate by the RBA. I have provided my own example below.
What it means is that the differential between the official cash rate (as determined by the RBA) and the variable rate has significantly widened. While we focus on the banks failure to pass on the RBA rate cuts since September, its hard to find a commentator talking about the differential.
Here is my own example:
Prior to January 2008, the differential between the official cash rate and my variable mortgage rate was 1.32%.
In January 2008, the NAB increased their variable rate independently of the RBA by .12%. Differential, 1.44%
In February 2008, the RBA increased the cash rate by .25%. The NAB increased their variable rate by .29%. Differential, 1.48%
In March 2008, the RBA increased the cash rate by .25% (their last rate rise in the cycle). The NAB increased their variable rate by .29%. Differential 1.52%
Again in March 2008, the NAB increased their variable rate independently of the RBA by .09%. Differential, 1.61%
In April 2008, the NAB increased their variable rate independently of the RBA by .1%. Differential, 1.71%
In July 2008, the NAB increased their variable rate independently of the RBA by .15%. Differential, 1.86%.
My interest rate was therefore boosted by .54% independent of any RBA rate moves. Then we need take into account the fact that rate cuts since September have not been passed on in full by the NAB.
With the official cash rate at 3% and my mortgage rate of 5.24%, the differential is now a whopping 2.24%. That's just shy of 1% higher as a comparison than what i was paying in January 2008.
Is anyone talking about this in the media? Very few. Michael Pascoe from The Age is a notable exception. He's one of a select group of commentators whose views i take the time to listen to and have faith in. Alan Kohler and Stephen Long from the ABC being the others.
It seems as if the banks really are winning the spin war. But as usual, those of us with a mortgage are on the losing end. And there isn't much we can do about it.
What benefit is there in having the RBA determining the cash rate if banks wont follow by cutting their interest rates? Considering the power and lack of competition in the banking sector, its not surprising Monetary Policy is becoming a whole lot less effective.
How close was Emirates Airlines Flight EK407 to a massive disaster? Very close, according to a report to be released by investigators.
257 Passengers and 18 crew were on board the jet on March 20, 2009 when the plane only just cleared the fence at end of the runway at Tullamarine Airport, Melbourne.
The plane scraped its undercarriage, knocked out landing lights on the runway and was forced to make an emergency landing having circled for 20 mins to dump fuel.
UPDATE: Report Released confirms that wrong weight was inputted resulting in reduced take off thrust and speed. Human Error.
ATSB Report Abstract:
At 2231 Eastern Daylight-saving Time, an Airbus A340-500 aircraft, registered A6-ERG, commenced the take-off roll on runway 16 at Melbourne Airport on a scheduled, passenger flight to Dubai, United Arab Emirates with 257 passengers, 14 cabin crew and four flight crew. The takeoff was planned as a reduced-power takeoff and the first officer was the handling pilot for the departure.
At 2231:53, the captain called for the first officer to rotate. The first officer attempted to rotate the aircraft, but it did not respond immediately with a nose-up pitch. The captain again called 'rotate' and the first officer applied a greater nose-up command. The nose of the aircraft was raised and the tail made contact with the runway surface, but the aircraft did not begin to climb. The captain then selected TOGA on the thrust levers, the engines responded immediately, and the aircraft commenced a climb.
The crew notified air traffic control of the tail strike and that they would be returning to Melbourne. While reviewing the aircraft's performance documentation in preparation for landing, the crew noticed that a take-off weight, which was 100 tonnes below the actual take-off weight of the aircraft, had inadvertently been used when completing the take-off performance calculation. The result of that incorrect take-off weight was to produce a thrust setting and take-off reference speeds that were lower than those required for the actual aircraft weight.
The aircraft subsequently landed at Melbourne with no reported injuries. The tail strike resulted in substantial damage to the tail of the aircraft and damaged some airport lighting and the instrument
landing system.
As a result of the accident, the aircraft operator has advised the Australian Transport Safety Bureau that it is reviewing a number of procedures including human factors involved in take-off performance data entry.
The investigation is continuing.
The Australian Transport Safety Bureau (ATSB) report will indicate that the airline was just metres away from major catastrophe. The investigation has focused on excess weight being carried by the plane and possible pilot fatigue.
It is believed that the take off load inputted to the Emirates Plane computer could have been as much as 100 tonnes less than the actual weight.
The ATSB report is said to be significant and will include graphic footage taken by security cameras at Melbourne Airport. Now there is a video i cant wait to see.
Is Twitter boring you so much that you have quit tweeting?
If you are bored by Twitter, you may not be alone. Recent research in the United States suggests that 60% of Twitter users quit using the service after the first month. Wow. Those are some big dropouts.
Nielsen Research have determined that Facebook and Myspace have a much higher retention rate, keeping about 60% of their users after a month.
However the research does have a flaw. It measures individual user visits to the twitter.com website, and doesn't take into account those who have mobile applications for twitter. It is possible not to have to re visit the site after setting up an account, yet still be tweeting.
So are people getting bored with using Twitter? Its become such a big hit in the last few months that it is really just in its infancy. Judging whether Twitter is a fad may have to wait for a while.
It certainly received a massive surge in popularity recently when Oprah Winfrey signed up. She has nearly 700,000 followers in about 10 days. Even so, Oprah hasn't been so generous in her tweets, giving just 20 updates. And most of those were in the first few days.
So what happens when celebrities stop tweeting, as surely some of them will? And are people really that interested in what their so called friends have to say?
Twitter is a good tool, but as with everything on the Internet, there is bound to be something new soon. Remember that Facebook is only a few years old. What did we do before then?
What about you? Are you bored with Twitter? Or is it the natural replacement to Facebook?
This story is enough to make your blood boil. In the interests of fairness, Mark Maccar is just accused, not yet proven guilty. Therefore, i will suggest that Mark Maccar is allegedly scum of the earth and if proven guilty should be sent to jail for a very long time. A life term would be good.
Police are alleging the following. 24 year old Mark Maccar and an unnamed friend were riding their bikes along Plenty Road in Melbourne on Easter Sunday at between 80 and 85kmh in a 60 zone. Maccar struck a 69 year old woman crossing the road who suffered massive head injuries.
Police suggest that the woman clung on to the front of the bike and was dragged for about 10 metres. They then suggest that witnesses saw Mark Maccar kick the woman off the bike and ride away.
The woman is still in a critical condition and may not survive.
Maccar did not call an ambulance and removed the evidence of a crash from his motorcycle. The Prosecution has opposed bail, believing that Maccar could be a flight risk, may tamper with evidence and could interfere with witnesses.
Allegedly, Mark Maccar is a dirty, filthy and gutless scumbag. Enough said.
UPDATE: Marck Maccar has been granted bail on a $5000 surety, citing his apparently "...good employment record, no prior criminal history, family support and a job."
Having admitted that he made a major blunder in using fake documents to try to discredit South Australian Premier Mike Rann, Opposition leader Martin Hamilton-Smith's position could become untenable. That could pave the way for a leadership challenge by current Deputy Leader, Vickie Chapman as soon as this week.
And according to the newly created Vickie Chapman Twitter Page, the challenge is on. Its always hard to know who is and isn't real on Twitter - there are so many fake pages set up for politicians.
However, the Vickie Chapman on Twitter has the following to say:
"As an Internet first, I hereby declare my challenge on twitter. Party-room meeting this morning." and "I look forward to gaining the support of my colleagues this morning and working with South Australians over the coming months and years."
And from the Adelaide Advertiser:
"Liberal deputy leader Vickie Chapman previously said she would not challenge for leadership unless Mr Hamilton-Smith made a major mistake."
If the Twitter account is real, the challenge is on. If it isnt, its a very quick response and well planned bit of fun. (Right now, im still tipping the latter, but im a sceptic from way back.) Either way, after this incident, you can bet your bottom dollar that leadership rumblings will be the order of the day for some time.
Adelaide Advertiser 29 April 2009:
OPPOSITION Leader Martin Hamilton-Smith has admitted he used fake documents for a parliamentary attack accusing Premier Mike Rann of corruption.
He apologised to Parliament over his reliance on faked documents linking Mr Rann to a supposed illegal $20,000 donation from an organisation linked to the Church of Scientology.
Mr Hamilton-Smith told Parliament on Tuesday that Mr Rann had a meeting with Applied Scholastics, an education company linked to the Church of Scientology, in Melbourne to smooth the way for "special treatment" in return for a $20,000 donation.
The Opposition produced a series of emails purporting to be between ALP state secretary Michael Brown, lobbyist and former federal ALP senator Nick Bolkus and state ALP treasurer John Boag that detailed an "under the radar" donation of $20,000 – and seeking four separate invoices in an apparent bid to avoid federal donation disclosure laws.
But Mr Hamilton-Smith was forced to apologise after Mr Brown released the invoice numbers in question – each for a different amount, dated one year earlier than invoices released by the Opposition. "I'm happy to accept the invoices and emails have been discredited so I will go on and apologise to everybody," he said.
Worried by the latest report on the state of the Australian economy to emerge from Access Economics? Don't fret just yet. Access Economics and Chris Richardson are no strangers to forecasting. But most of them just happen to be wrong.
You may think that Access Economics is one of the more respected economic modelling and forecasting organisations. But their predictions seldom come true.
The head of Access Economics, Chris Richardson is on TV almost every night, giving his sound bite on the state of the economy. I'm almost tempted to give him the "Tim Costello Award" for gratuitous and pointless commentary. Because the claims by Access are usually so outrageous that the media feel it their duty to report it. However, its really just downright scaremongering.
The latest report from Access has predicted some very dire straits indeed for Australia. They have suggested that the RBA will probably cut interest rates by full percentage point this year. Access also say that unemployment is likely to rise to 8.5% or well over 1 million people. I wouldn't at all be surprised if Richardson pops up on TV soon calling the end of the world as we know it. And he would do it with such a straight face too.
But lets take a step back,to just 12 months ago in April 2008. What were Access predicting then? Chris Richardson, apparently the fount of knowledge on all things economic had the following to say:
CHRIS RICHARDSON: I think for 2008, Australia will be absolutely fine. Our share markets might dance to the tune of the US, but our economy is very much plugged into China these days. And China's still fine.
And people, I think, lots of the negatives have been very newsworthy, the US recession, the meltdown in markets, the higher interest rates, people have not recognised the strengths of the positives also out these at the moment.
In particular, we're seeing, for example, a tripling in coking coal prices. This is essentially, coal is Australia's largest export. This is essentially a massive positive.
PETER RYAN: Your message is that if China is okay, so is Australia?
CHRIS RICHARDSON: Yes, and in 2008, China is absolutely fine. People are too worried about slowdown and the problems of slow-down, higher unemployment and the rest of it in Australia in 2008.
We don't think that what would characterise Australia this year, rather we think it won't be the problems of slowdown, it'll be the problems of prosperity including inflation and interest rates, which will continue to be the standout features of Australia's economy in 2008.
Ahh, thanks for that Chris. (And for the record, just months before that, Access Economics were predicting a Golden Age for Australia!)
So in April 2008, Inflation and Interest rates were the big problem for Australia going forward? But just 12 months later, they don't rate a mention from Access.
People were too worried about higher unemployment? Oh dear, you didn't see that one coming did you? But 8.5%? Give us all a break, it wont even go close to that.
And apparently China was going to be our saviour. Funny thing is, whilst its come off its highs, China is still growing strongly.
So what if anything did Access Economics get right? They got to spruik their business to all and sundry through the media. Because the only thing that Access are good at is being masters of spin and a big story. You see, Access actually charge people for economic modelling. Yes, people pay for their work. Even in business, there is another one born every minute.
We have seen how well they have fared in the past year. Lets come back in 12 months time to see how accurate Access Economics and Chris Richardson are on their predictions.
Come on, be honest, Willy Wonka and the Chocolate Factory brings back memories for you. Well, ok, it does for me. Like The Sound of Music, it was one of those movies that was watched over and over again when it was played on TV.
Gene Wilder is certainly a comic genius and his performance as Willy Wonka is flawless. I remember all those great movies, Stir Crazy, Blazing Saddles and See no Evil, Hear No Evil. Don't forget, Gene Wilder was the original Leo Bloom in the Mel Brook's classic movie The Producers.
As much as i am a fan of Johnny Depp, the remake of Willy Wonka as Charlie and the Chocolate Factory was very disappointing. That's not to say that Depp wasn't brilliant, i consider him one of the world's most underrated actors. I just think that with the original being such a classic, its best to leave it alone. Because you wouldn't remake Its a Wonderful Life or Wizard of Oz would you?
Anyways, this video is of Gene Wilder singing one of the more memorable songs from the movie, Pure Imagination.
Obviously listing my email address on my website has opened me up to countless spam messages from around the world. I don't mind. I like to reply sometimes. See below.
The latest scam is supposedly from British American Tobacco, sent by a Mr Paul Adams entitled British Tobacco Promo. They are awarding me a prize of 1 million pounds. That's better than the 750,000 i won yesterday. Life just keeps getting better. I'm on a roll.
Its nice to see British American Tobacco giving something back to the community! But honestly, if you wanted to send a scam email, don't you think you would pick a company with a slightly better standing? The Siemens one was odd enough, but a cigarette company handing out free money? I suppose some people fall for it.
I swear i must be getting distracted lately. Ive been spending way too much time responding to scam emails offering me free money. But if you cant have some fun at the expense of some low life Nigerian then where can you have fun?
The emails and my replies:
Dear Lucky Winner,
We are pleased to inform you that your e-mail address has won the Tobacco
Draw Promo.Therefore you have been approve for a lump sum payout
(1,000,000.00 GBP) One Million Pounds in the Program held on 20th Of
April 2009, and released 23rd April, 2009. Your e-mail ID emerged as one
of the winners in the 1st category.
Please fill the form below and send it to our payment department with the
contact given below.
Contact person:Mr Paul Adams
Contact Email:pauladams00@btinternet.com
PAYMENT PROCESSING FORM
1.Full Name:
2.Full Address:
3.Status:
4.Occupation:
5.Phone Number:
6.Country:
Yours faithfully,
Mr.Paul Adams
-----------------------------------
Dear Mr Adams
Wow, thank you so much for your email. I had no idea that my years of smoking would result in me winning a prize.
I have just run out of smokes, was going to run down to the supermarket to get some more. Can i please ask that instead of getting the 1 million pounds it could be paid in cigarettes instead?
But can i ask, how long do cigarettes last? Like, would i get sick by smoking them after the best best before or use by date?
Someone once told me that cigarettes cause cancer, but i dont really believe them. Do you smoke Mr Adams?
Are you any relation to John Adams? He lives down the road from me. He used to smoke but he gave up because his wife Mavis didnt like it. I think he should be able to do what he wants. Silly Mavis, i never liked her anyway.
1.Full Name: Lawrence Jamieson
2.Full Address: Beaumont Sur Mer, France
3.Status: Single (is that what you mean?) Otherwise, im happy.
4.Occupation: Artist
5.Phone Number: 6755 4431
6.Country: France
Thank you again, i will be excited to hear from you soon.
Lawrence
---------------------------
DEAR ESTEEM WINNER ,
Your claims have been authenticated by this office and your winning notification is passed as genuine from British America Tobacco Company Promotion in United Kingdom as your email was selected which came out in our Random Draws. You have therefore been approved to go ahead and claim your funds which amounts to £1,000,000.00 (One Million Great British Pounds Sterling).
Please, It's imperative that you contact our affiliated International Winners Legal Representative (DONALDS AND DONALDS LAW FIRM) to notarize your form/claim and also process it with The United Kingdom Board of Promotion Commission
Kindly find their contact details as stated below.
Donalds And Donalds Law Firm
L23w Calive Way, Thames Street,
Weybridge, Surrey. KT13 8NL.
United Kingdom.
Tel:+447035967766
Fax: +44 871242 8331
Email: donaldsfrm@consultant.com
You are to contact them with the Winning code: Serial Number M7-4038-581 Along with your full information.
Sincerely,
Mr. Paul Adams
The British American Tobacco Award Team.
------------------------------------
Dear Sir
I repond with the winning ticket number. This is amazing, i feel just lke Charlie Bucket after he found the last golden ticket in a Wonka Bar. I would break into song, but with all this swine flu going around, i dont want to open my mouth too much. You know what i mean? They have now banned kissing in Mexico! Thats gotta be tough for all those kids on Spring Break.
Anyhoo, my winning ticket number is Serial Number M7-4038-581.
I still havent had an answer on if i can get paid in cigarettes instead of the money. That would save you some money, and would save me some time in having to head off to the shops whenever i run out of smokes. Its a real drag having to do that.
Contact me soon please,
Lawrence Jamieson
How loud is "too" loud in the bedroom when enaging in intimate acts? (that's making love to those of you in a relationship)
If you live in the UK, being too loud could see you end up in jail. Hard to believe that being too noisy while having intimate relations with your husband means a visit to the slammer. Surely there are worse crimes out there?
Caroline Cartwright, a 48 year old woman in England was previously hit with an Anti Social Behaviour Order due to the amount of noise she made while having what was described as "marathon romps" with her husband Steve. The order prevented her from "making excessive noise" while making love anywhere in the UK.
But Caroline, who obviously couldn't get enough of Steve, breached the order 3 times. Having been dobbed in by neighbours numerous times, (including a partially deaf one), Caroline was arrested by Police, and has been remanded for as long as 2 weeks while awaiting trial.
Because, yes, Caroline has requested a trial by Jury. Now that has got to be interesting. I wonder what 12 of her peers will think. The last time that she fronted up before the courts, neighbours produced 23 separate recordings of Caroline and Steve "doing it". They placed recording devices on the walls. So maybe the neighbours are just voyeurs. Filthy buggers.
One neighbour, who is obviously celibate, said that "I heard sounds....they were really loud, and there was a lot of moaning and groaning and screaming as if in pain. It wasn't just the woman, it came from both parties."
While thugs roam the streets and people complain about marriage and family breakdown, here we have a couple expressing their affection for each other. Granted, they make a lot of noise while doing it. But is that their fault? Id have to think that there are bigger crimes being committed out there. Going to jail for having a good old romp with your husband? Rough justice!
Id suggest a simple solution. Caroline and Steve could buy each of their neighbours a set of ear muffs. Or even a box of disposable ear plugs, like they use in factories or at the Grand Prix. But, its probable that the jealous neighbours still wont be happy. They obviously aren't getting much at home.
Is there such a thing as a Queensland Accent?
Australia's Miss Universe contestant, Rachael Finch has been told to refine her accent before competing for the title in August. President of Miss Universe Australia has said that Rachael is "...very Queensland, and Queensland has a bit of a different accent. So, I think it's about just trying to refine her accent a little."
I'm still scratching my head on this one. Queensland is still part of Australia isn't it? And it is a really big state, surely they don't all speak the same? Sure, Rachael Finch speaks differently to someone from Sydney or Perth. Just as i speak with a slightly different accent to someone from Brisbane.
That's the way accents are - every different place you go, there will be minor variations. If i travelled to regional Victoria, or into South Australia i would be able to tell the difference. The beauty of Australia is, our variations are incredibly minor compared to other countries.
Take the UK. You only need travel a minor distance to witness massive differences in accents. The same can be said for Ireland. And what about the United States with the north and south divide?
So is there a correct accent for Australian English? Of course not! As long as you speak clearly, your accent is your accent.
This is from Wikipedia on the Queensland dialect. Make your own mind up on whether you think this is accurate.
In Queensland the vowels of 'e' and 'o' are pronounced completely differently from other areas of Australia. For example a Queenslander will say hello as something more like "hullohhw" and a bowl as a "buwl". The 'l' sound will be made by placing the tongue at a somewhat higher point on the roof of the mouth, creating in certain words an "ull" resonance.
Listen to Rachael Finch in this video - Is the Accent ok?
There is so much talk about families struggling to eat well in this "Global Financial Crisis". I believe that it is possible to eat really well on a tight budget. I wrote last year about how to live on $5 a day, i really should provide more menus in my 7 day challenge. Or check out my 5 meals for less than 5 dollars. Now that's a healthy, cheap and tasty dish.
In the meantime, here is a recipe for a Home Made Meat Pie, with Mashed Potatoes which is pretty healthy, easy to prepare and enough to feed at least a family of four. And best of all, its really cheap. All up, it comes in at less than 8 dollars. To feed four people, its $1.85 each. Not bad at all. Add a couple of slices of home brand white bread from Coles and Safeway and you could round it off to $2 per head.
Ingredients:
400gm of Mince Beef (any mince will do, or finely cut steak or chicken)
1 Onion finely diced
5 Medium Potatoes (2 cut into cubes, 3 cut in quarters for boiling for mash)
3 Carrots (cut into small pieces)
2 Slices of Puff Pastry (Packet of 5)
Tomato Sauce
Soy Sauce
Gravy Mix (Packet)
Salt and Pepper
Sugar
Method:
Defrost 2 pieces of frozen puff pastry. Place your cubed potatoes and carrots into a pot of water and bring to the boil. Allow to cook until very tender. Remove, strain and place in a bowl. Bring your potato quarters to the boil to cook for mash.
Brown the diced onion in a fry pan, add some salt and pepper. Add mince meat and fry until cooked through. Mix in 3 tablespoons of tomato sauce (ketchup) and a couple of dashes of soy sauce. Then add about 2 tablespoons of sugar (the secret ingredient to everything)
Mix enough gravy to create about 400mls, (use boiling water) Add to the meat and onions and allow to simmer for 10mins.
Mix through the carrots and cubed potatoes and simmer again for another 5 mins. Line the bottom of the baking dish with one slice of the puff pastry, add the meat and vegetables and place the second piece of pastry on top. Place into the oven at 270c for about 25-30 mins. Strain your quarter potatoes and mash. Serve and enjoy.
The cost of the above meal is based on the following:
Mince Meat - $3.20
Onion - 40 cents
Potatoes - $1.40
Carrots - 60 cents
Puff Pastry - $1.20
Tomato Sauce - 10 cents
Soy Sauce - 10 cents
Gravy Mix - 40 cents
Yet another scam via spam email. Its kind of like a Phishing scam. This one is the Siemens Award Promotion. Ive had several variations to that prize title, but the award of cash is always the same, 750,000 pounds. In this case its just a prize for doing nothing, some poor fellow from Africa didn't have to die in a helicopter crash for me to be offered the money.
According to a recent report, over 80% of all emails are considered spam, resulting in the use of 33 billion kilowatt-hours of power every year. Consider the amount of drive space it takes to store all these messages and that's easy to believe.
Now id love to have a cool 3 quarters of a million British Pounds, even if their currency isn't as strong as it once was. I fear though i may never see it. But, to keep the ruse going, i thought it appropriate to respond to the offer. See the original prize email and my reply email below. I wonder if my response is considered spam?
I will update if I'm fortunate enough to receive a reply:
You have been approve for a lump sum payout (£750.000.00 GBP), in the
Siemens Award Promotion Please fill the form below and send it to our
payment department with the contact given below.
1.Full Name:..............
2.Full Address:..................
4.Occupation:..............
5.Phone Number:............
6.Country:............
Yours faithfully,
Mrs Joan Thomas
Dear Mrs Thomas
I was so excited to read your email about winning this prize, i danced around the room. Some may call it a Jig, but i don't think I'm yet qualified for that. I was taking lessons in Jigging, but i had to give them up due to a lack of money. But now i have won this prize, i will be able to start again! You don't know how happy that makes me.
I have also wanted to buy a new scooter, not one of those motorised ones, but the ones you push along with your foot. Do you know the one i mean? They aren't that expensive but they are so good for the environment. And i think i will look soooo cool riding it. I will need a snazzy helmet as well, not a nazi looking one, but maybe something with stars. I haven't yet decided.
On a more personal note, medical operations are expensive here, so i will probably have that growth removed, which is downstairs on my body if you know where i mean. Its been getting much bigger lately and causes me some pain as well. Sometimes i have itched it and that relives the pain. Its kind of embarrassing when i itch it in public, people think I'm doing other things to pleasure myself. I swear to you Mrs Thomas that this is not the case. I only did that once and i didn't really enjoy it. Do you think that is bad?
I am so happy right now that i don't know what I'm really saying. But if i was to see you right now i would give you the biggest hug then probably pat you on the head and rub your stomach at the same time. That's not easy to do to yourself, its one of those co-ordination things. But I'm getting better at it.
Can i ask how i will receive the money? Because i live in Australia, how can i get the money in my local currency? I think that taking it all to one of those exchange counters at the airport might be a bit hard. They have those really small windows, so unless the 750,000 was in big bills it could take a long time to pass it through. I could just carry it all on the plane but id need a really big suitcase. Could you let me know how big it should be? I wouldn't want to have to carry the rest in my pockets. Thanks.
Here are my details as requested, please contact me soon, its getting cold here and i cant afford the coal to put on the fire.
Full name: Dale Kerrigan
Address: 3 Highview Crescent, Coolaroo, Victoria,
Occupation: Patio constructions
Phone Number: 7841 9898
Country: Australia
I look forward to hearing from you. Thank you, may god bless you Mrs Thomas and you will be in my prayers tonight.
Yolta Multa Sully Mintie (Australian Translation - may the light shine down upon you every day of your life)
Dale Kerrigan
Devine's catchcry "Why Rent when you can own" should be replaced by "Why you pay more for a house with Devine Homes."
They sound great, house and land packages offered by Devine Homes, with little or no deposit. In fact, you can walk in the front door of your new home having stumped up very little of your own cash. But there's a catch. And it will cost you tens of thousands of dollars over the next 30 years.
Devine Homes operate in Queensland, South Australia and Victoria. You may have seen their TV and print advertisements, featuring none other than the former VFL hard man Leigh Matthews. Is he a man you can trust? Just ask Neville Bruns.
Devine are specialists in marketing their homes to first home buyers. So good that they have had a massive spike in sales since the boost to the first home owners grant was announced. Basically, they offer you no deposit home loans, and will cover most of your costs in getting into your home. They call it their "No Deposit, No Legals and No Worries finance."
It all sounds so good. But watch out for the fine print. Devine Homes subsidiary First Permanent is the finance company that will be giving you the loan. While Devine can arrange finance from any of the other banks or brokers, this wont apply to their No Deposit Loan.
And for the privilege of taking out the loan with Devine and First Permanent, you will be paying at least an extra 1% interest rate. And it could be more than that, depending on the finance options and honeymoon periods offered by other lenders to new borrowers.
Currently, the Devine Homes interest rate is about 1% above that offered by the regular bank's no frills package. And its about 1.5% above an introductory rate which could be as long as a 3 years.
A rate just 1% higher doesn't sound like much does it? But over the course of 30 years, you will be paying tens of thousands of dollars more for your loan. As an example, a $300,000 loan over 30 years will cost you at least $68,000 more if using Devine Home finance. That's over $180 per month more than financing with a bank.
What you also have to keep in mind is that Devine Homes are the ones who set the price for the house. You are not buying a property in a competitive market, the prices are fixed by the builder and finance company. There is no guarantee that the property being purchased isn't already overvalued. Any minor collapse in the property market could affect Devine Homes more than other owners.
That all adds up to a very bad deal. Of course, these deals are not restricted to just Devine Homes. There are others out there. Remember that it always pays to check the fine print, and before making the biggest financial commitment of your life, do some comparisons. You may just save yourself some serious money.
The Department of Public Prosecutions in conjunction with the ACCC has dropped the charges of price fixing against Richard Pratt.
But how much public money was wasted in pursuing Pratt? The DPP and ACCC have cited Pratt's ill health as the reason for the case being dropped.
But it came after the Judge in the case ruled out crucial evidence. Richard Pratt had requested that this case not be dropped on medical grounds, wanting to fight to prove his innocence.
So more money has been wasted pursuing a fruitless case against Pratt. That's your money. Good one ACCC.
On another point, it was great to see the Carlton Football Club winning their game against the Bulldogs for Richard Pratt. And there is no need to worry about their kicking, it was back with a vengeance.
Being a child of the 1980's, i grew up watching great shows like Family Ties and Happy Days. Im not sure that still makes me young. But one of the other staples was a very funny show called The Golden Girls.
Sadly, one of the stars of The Golden Girls, the very talented Bea Arthur has passed away, aged 86. Bea was an acclaimed actress on Broadway before making waves as the star of the Maude tv series in the 1970's.
In 1985, Arthur teamed up with Betty White, Rue Mcclanahan and Estelle Getty for an unlikely sit com involving 4 older women coming together to share a house. It was a big hit and ran until 1992. It won numerous emmy awards including individual honors for all of the stars. Estelle Getty, who played Arthur's mother in the series passed away last year.
This was the final scene in the last episode of The Golden Girls.
I'm not a huge fan of Channel Nine's 60 minutes program, but sometimes they do get it about right. Probably their best reporter, Liam Bartlett has brought us the story of Matthew Butcher, the WA Policeman who was viciously assaulted by thugs during a pub brawl.
Butcher has been left with life long injuries, including partial paralysis. He has to learn to work properly again. This story entitled "Rough Justice" is a real eye opener and might just bring a tear to your eye. Matt Butcher was just a guy going about his normal job of protecting our community, only to be set upon by a violent thug.
The worst bit about it was that the thug and his family got off. I'm struggling to work out why a jury of 12 of the thug's peers would let him go free. Because they are our peers too. I certainly know that i wouldn't have let him go. So what are the odds that 12 people together would think that it is alright to allow such an attack on a cop?
We often talk about violence in the community, and the mindless reasons for assaults on our fellow citizens. But there must be something more wrong when a group of jurors from our community seemingly endorse such behaviour.
I have written previously about the Butcher assault and provided the video, which has stirred up a great deal of emotion. That can plainly be seen from the comments. Most people support Butcher and the police. But there are always a group of ratbags who think they can have free reign to attack cops and get away with it. Its very disturbing.
We can celebrate Anzac Day with such gusto, wave our flags and sing our national anthem with pride. But this is not a harmonious country. Not by a long shot.
How long will the recession last? Is the doom and gloom forecasting accurate?
It all depends on which economics commentator or actual economist you listen to. Are any of them right? At least one will be, but that's just playing the odds. Someone usually wins the lottery every weekend too - and those odds are 8 million to one.
Because the truth of it is, economists and commentators almost never get it right.
Think back to the bull market, where the economy was going full steam ahead. That wasn't so long ago - 2007 in fact. How many commentators were predicting a recession? Few indeed.
We were told of how much good value there was to be found in the stockmarket. Buy recommendations outweighed Sell suggestions by about four to one. They said that prices of essential commodities like copper and iron ore would keep rising - we had to satisfy the insatiable Chinese demand after all. Any property was a solid investment. Any mention of the word "unemployment" was far outweighed by the phrase "skills crisis". The only bogey on the radar for economists and commentators was Inflation.
Turn it forward to the present day - a bear market. Now economists and commentators are scrambling over each other to tell us how bad it is going to be. Sheeplike. The recession will be long lived, with some predicting a few years. Unemployment will skyrocket (what skills crisis?) And the stockmarket could still be in for a rough time ahead. High inflation is but a distant memory.
But do they know something that the rest of us don't? Are they oracles or founts of all knowledge? Not even by a long shot.
Take the IMF as an example. They have had 5 new world economic forecasts in the last 6 months, each one worse than the last. Their predictions keep changing.
They might argue that they are responding to changing conditions. That's true. But they are also making forecasts for the future. Commentating on current conditions is one thing, we can all do that. Predicting the future when things change day by day is somewhat more difficult. Almost impossible in fact.
But commentators and economists are asking us to believe them on their latest forecasts.
To an extent, all the doom and gloom talk is self perpetuating - the more we talk the economy down, the more likely it is to stay down. Its a crisis of confidence. You don't encourage consumer spending by being a doomsayer.
Self perpetuation is also evident in a bull market. During good times, talking up the economy can lead to overconfidence. It certainly helped create the overinflated prices of property and many stocks.
Unfortunately, economists and commentators very rarely get the balance right. For them, a happy medium is just a smiling clairvoyant. Because soon enough, some commentators will start to predict a vision of a light at the end of the tunnel. While still a stab in the dark, more will follow, and the merry go round will start again. (Too many metaphors? Yes, but im taking their lead)
That's not to say that they will be right then either. But when they start to engender more confidence in the economy, consumers will move back in. Its what Ben Bernanke, Chair of the US Federal Reserve suggested recently, that there were green shoots emerging on the way to recovery. But he will only be as right as the commentators allow him to be.
So how long will the recession last? A better question might be, How long is a piece of string? Answer that and i will gladly bestow on you the title of economist or economic commentator.
Keep a watch out in the coming days and weeks for the deadly Swine Flu, which could attack Australia. The flu is believed to be a combination of pig, bird and human flu which is highly contagious and can be passed from human to human.
At least 81 people have already died in Mexico, with confirmed cases in the United States and France.
There are also 10 reported cases of the swine flu in New Zealand after students returned home from a trip to Mexico.
Anyone recently returning from Mexico or the US and experiencing flu like symptoms should see their doctor immediately. The flu is expected to be treatable with anti viral drugs Relenza and Tamiflu if caught. These drugs are available at pharmacies with a prescription from a doctor.
It is not believed that the annual seasonal flu vaccine will be effective in preventing the swine flu virus.
GP's and hospital emergency departments have been notified of the swine flu and will be on the look out for symptoms.
Ive posted about a number of other terrific singers here, probably about time to promote some real local talent.
Im talking about Hayley Legg, a singer out of Sydney. Check out her cover of Jason Mraz's Im Yours. Head to Hayley's site to pick up a copy of her CD "About Time" - its only $17.50 including postage. Good value.
Is there a need to Tip for service in Australia?
The quick answer is no - there is no rule or requirement to tip for service in Australia.
The longer answer is, yes, if you think the service you have received is above and beyond what is normal. But if you don't leave a tip, its unlikely that you will be frowned upon. And if they do, they are probably just being greedy.
Keep in mind that Australian employees don't work for tips - they are paid a full salary.
Some people you may like to tip are restaurant or cafe staff, taxi drivers, porters at a hotel, or take away delivery drivers. Personally, i judge them all on service. If im pleased with the service and they have looked after me, i will give them a tip.
If you choose to leave a tip, how much money should you give?
That all depends on the service you have received.
Generally, if you are pleased with a waiter, perhaps a couple of dollars per person might be enough. If you are really happy and they have gone out of their way for you, give them 5% or 10% of the total bill. Keep in mind that restaurant and cafe staff tend to pool their tips - and it will be shared by all staff working at the time, including the chefs.
For a taxi driver, if you haven't had a dice with death, just add a couple of dollars to the bill. (Taxi drivers are actually low paid)
In a hotel - if you actually find someone to take your bags to the room, again, a couple of dollars is fine. They wont be offended if you don't tip them, but it doesn't hurt.
And for delivery drivers, again, add a couple of dollars. Even if they are late, its usually not their fault.
Why is it not necessary to tip in Australia?
Australia is unlike places such as the United States where employees in some professions earn a minimum wage, and earn most of their income in tips. Australians working in restaurants, bars and other service professions actually receive a proper wage for their work.
Waiters and bar staff in Australia can earn well over $20 per hour, depending on the day and time that they are working. That's not a bad salary. Some may argue that it is low, but its probably still higher than the same professions in the US or UK even when including tips.
Australian workers don't live on tips - if they get them, its a bonus.
With the IPL tournament in India moved to South Africa due to safety concerns, its no surprise that Tennis Australia has cancelled the Australian tour of India, scheduled for Chennai.
Tennis Australia made an appeal to the International Tennis Federation to either change the venue away from India or postpone the date but it was refused. The Davis Cup tie between India and Australia was scheduled to be held in the middle of India's elections.
Given the prospect of violence during this time, Tennis Australia has made the only choice available to them. They had to consider the welfare of the players and support staff.
Its strange that the ITF didn't take into consideration the fact that the IPL was moved from India due to safety fears - and that wasn't even during election time. They also didn't think about the recent attacks on Westerners in Mumbai, or the attack on the Sri Lankan Cricket Team in Pakistan.
Australia requested tight security from India, but it appears what was offered was not adequate. The ITF may now sanction Australia for not appearing at the event.
I have long predicted that the Commonwealth Games due to be held in Delhi in 2010 will be cancelled and moved back to Melbourne. While violence in India is nothing new, recent events and threats of attacks will mean that many countries will follow Australia's lead not to travel there.
Little Aussie - 5 Year old Hunter Brossman from Australia and a Message About Ending War for Anzac Day
Have a look at the following video, where a very smart and conscientious kid named Hunter Brossman talks about ending wars because "there's a lot of people dying." Its actually pretty inspiring stuff. Its better than most adults can come up with.
Hunter has been taught by his parents about Anzac Day and has also learned about it at kindergarten. I'm a big believer in teaching kids about our history at a young age, so well done to them both.
This is what Hunter's mother Pam says about the video:
My five year old son Hunter Brossman saw an advertisement about ANZAC day on TV and was very sad. He said he had a very important message that he wanted to get out to the world and asked if I could video him and put him on my website.
I had no idea what the message was...but I have to say Mummy and Daddy were very proud. If we only spent more time listening to our children....one could only imagine what a wonderful world we would live in.
A skinny model? Who would have thought that this could cause such a fuss. But the decision by model Stephanie Naumoska to compete in Australia's search for a Miss Universe contestant has been seriously questioned by so called "experts".
This is now making waves around the world. But why? Surely Stephanie is the best judge of how she looks. And what she does to her own body is her business.
But it was great to hear from a dietitian, one of the more overrated professions in our society. Melanie McGrice said that Stephanie "would be categorised as underweight and I would certainly want to be doing an assessment of her diet to make sure she doesn't have some type of eating disorder." Charming. How about you go back to stopping fat kids eat too much Mel?
Obviously, Stephanie is angered by the claims that she is too skinny. "I'm very upset because I'm not anorexic and I don't have an eating disorder. I've been tall and thin my whole life." she said.
Is she too thin? For my liking, yes. But i wouldn't dare to push my views onto her because its her life. Let her do what she wants. The key thing here is, for whatever reason, she didn't win.
Pardon the pun, but I'm sure the media have tried to create a story out of thin air. Have a look at any of the catwalk models the media promote at every fashion show. Hypocrisy? You bet.
Check out the photos - if Stepahnie Naumoska is too skinny, why is it anyone else's business?
Anzac Day Public Holiday Dates for 2010 and 2011
In 2009, only Western Australia and the ACT get a day off work due to Anzac Day falling on a Saturday. Their official public holiday is Monday, April 27. All other states observe the public holiday on the Saturday and there is no extra day off.
However in 2010, Anzac Day falls on a Sunday. This will result in an extra day Public Holiday for all States and Territories on Monday, April 26, 2010.
In 2011, Anzac Day happens to fall on Easter Monday. As that is already a public holiday across Australia, all States and Territories have agreed that the public holiday for Anzac Day will occur on Tuesday April 26, 2011.
Sometimes the beauty of South Park is that it just doesn't hold back. While The Simpsons takes a subtle approach in its commentary on society, South Park goes straight for the jugular.
In the latest episode, South Park take a crack at Susan Boyle, the Britain's Got Talent Star who is likely to win the whole competition. I think Susan Boyle has an amazing voice, but this little snippet of South Park is just classic. Its more a commentary on society's reaction to Boyle rather than a crack at her.
And a warning, as will all South Park episodes, the language is slightly colorful...
Ive long considered that the Foxtel advertising campaign is one of the best in Australia. They are funny, but better still, they leave you with a clear Foxtel message. In other words, they sell the product.
Many advertising campaigns focus on the funny. You may remember the ad and how funny and clever it is. But can you name the product? Sometimes the advertising company is so focused on humour, they forget to promote the product effectively.
If you think i make this stuff up, take the test yourself. Next time the ads come on, study them. Look for the product, and consider the message. If the ad distracts you by being too funny or too smart, will you remember the ad but not the product? And is the product prominently displayed? Or does it only appear briefly?
Thankfully for them, Foxtel and their advertising team haven't made this mistake. I'm particularly fond of their latest ad which features a woman drinking tea and watching live football. I haven't found a video of it yet. Will post it when i do.
But here is a classic one from a couple of years back. If you have every wanted to exchange your kid for another one, this is the ad for you. Its just brilliant.
The Problem With No Deposit Home Loans in Australia
Could we soon see a mini sub prime crisis in Australia thanks to No Deposit Home Loans and the First Home Owners Grant? Its a real possibility.
Banks and brokers tell you that they are suffering because of the global financial crisis, making it harder for them to source funds. They have been restricting their lending to small and medium sized businesses over the last 6 months citing this very reason.
But there is no shortage of money available for home mortgage loans. In fact, over the last 12 months, loans to first home buyers have skyrocketed. So much so that the average amount loaned to a first purchaser has gone up $51,000. The average loan is now $281,000.
While the Real Estate bodies and construction companies across Australia will tell you that the housing market is soft, the opposite is actually true. You don't have to be a genius to work out that a 22% increase in the average loan amount in just one year means that house prices must be much higher.
But worse, and something that is hardly being discussed, is that there is a whole new category of people purchasing homes. Those who wouldn't normally have the means to purchase a home. There are two primary reasons for the increase. Interest Rates at 50 year lows and the boost to the First Home Owners Grant.
The majority of these new home buyers are using No Deposit or very low deposit home loans. You get to pay the deposit, fees, charges and stamp duty with the government grant. Some of the banks have restricted this practice in recent times, offering loans with just a 5% deposit. But others still offer no deposit loans. And some brokers like RAMS home loans offer 110% finance.
The Sub Prime Crisis in America came about basically through predatory lending practices. Giving loans to people who had no real prospect of meeting their mortgage payments.
Are no deposit loans in Australia any different? Not really. While they have always been around, in a rising property market and booming economy they are less of an issue. Defaults are generally less, while anyone who does default and is forced to a mortgagee sale could well be cleared of their debt due to a rising house price.
But in a recession, and with the prospect of falling house prices, you have a double whammy. Increased defaults and in turn negative equity - where your house is worth less than what you paid for it. Then consider the effect of medium term increases to interest rates. That extra $51,000 is going to cost the borrower a whole lot more. If they couldn't save a deposit, can they meet the higher payments?
Ponder this - should a person who has not been able to save any deposit, be granted a $350,000 loan? According to banks and brokers, yes. Here is an example from RAMS about no deposit loans, using the first home buyers grant:
Say Andrew wants to buy a $350,000 property. He’d usually have to save a minimum 5% deposit (or $17,500) and show evidence of a savings history. Because he’s borrowing over 80% of the property valuation, Andrew would normally have to pay mortgage insurance. On this loan amount this would typically be over $6,000. In addition he would have to pay other fees such as legal costs and possibly stamp duty (in some States first home buyers are exempt). Straight away, we can see they he is going to need over $25,000 just to get started.
However, with a no deposit home loan Andrew doesn’t need to save a deposit, or demonstrate a savings history. Plus he can use his First Home Owners Grant, or a gift from family, towards his remaining costs. This means he can now afford to stop paying rent and buy his first home faster.
Now here is my example of the same loan:
Imagine borrowing 100% of $350,000 for a home. In 12 months time you lose your job, you cant afford the payments and you are forced to sell. The housing market has tumbled only slightly, say 10%.
After the costs of selling (say $10,000) your proceeds of sale might be $305,000. Take away any reduction in your capital thanks to some repayments, and you are left with a debt of at least $35,000. And a 10% drop is a conservative estimate.
Don't think the bank wont do everything in their power to get that money back. If you had never contemplated bankruptcy, then would be a good time to start.
If we all recognise that the sub prime crisis in America was a major contributor to a global recession, why is it so hard to understand that No Deposit Loans in Australia are the same thing?
It seems that Australians just love getting free money from the Government. Whether its a tax bonus payment, the baby bonus or a pension, hands are eagerly placed out to receive.
But the First Home Owners Grant is something different. Yes, it's free money. It's also a chance for someone to consign themselves to a lifetime of debt.
It is a grant which has opened the door to a large group of people who should never be buying property. Combined with low interest rates, it could be a recipe for disaster. It is strangely reminiscent of the sub prime crisis in the United States.
After Kevin Rudd all but confirmed that he wont extend the boost to the First Home Owners Grant, there have been cries of shame from prospective purchasers and the construction industry.
I keep talking about the false economy of the grant - all it does is allow competing players to boost prices. But it also means that the people who haven't been able to save for a deposit can now use the grant to get into the market.
I'm sorry, but if you haven't been able to save enough money for a deposit, can you really be confident that you will be able to pay off the loan? Once the grant boost ends, many of these people wont be able to get into the housing market because no bank or broker will offer them a loan. So why should they get one now?
We saw what happened in the United States when banks and other brokers offered mortgages to those that clearly could not afford them. It was one of the main reasons for a worldwide recession.
So are people now paying too much for their first home? Quite possibly. When June 30 comes around and the boost to the grant ends, keep an eye on the sub $500,000 homes. Unless interest rates drop significantly again, these prices are likely to stagnate for a while, then probably fall.
That means new home buyers could well be left with negative equity - owing more than their property is worth. It happened in the early 1990's.
But because of a lack of supply, we are unlikely to see a massive crash in house prices. Yet they cant keep going up forever. And Interest rates are at 50 year lows allowing increased borrowings.
Just wait to see what impact any rate rise will have on the market - first home buyers in particular. If their massive loan is based on very low interest rates, even a minor move could be disastrous. Consider the impact if they went back to over 9%.
If ever you wanted a time to sell your small investment property - it is certainly now. And the reverse is true for those looking to buy. Wait. Don't compete against every one else who has the same as you. And if you haven't got enough for a substantial deposit without government assistance, then keep saving.
Spinal Tap - one of my most treasured memories of the 1980's. If you haven't seen the rockumentary or mockumentary This is Spinal Tap, as Molly would say, do yourself a favour - head out and rent it.
It follows the career of David St. Hubbins, Nigel Tufnell and Derek Smalls in the hard rock band Spinal Tap. Featuring the actors Michael McKean, Christopher Guest and Harry Shearer, This is Spinal Tap has become a cult classic.
To celebrate 25 years of the movie, Spinal Tap have reunited for the Unwigged and Unplugged tour through North America, playing 30 concerts. They will also be performing a "One Night Only World Tour" on June 30 at Wembley Stadium in London.
Could they tour Australia? It has yet to be announced, but the trio do recognise the popularity of Spinal Tap here. It would certainly be a treat for all of us and Ive no doubt would be well supported. I for one would be first in line for tickets. I just couldn't miss the stone henge song.
Spinal Tap and Stone Henge Video
Spinal Tap - These Go to Eleven Video
Ever Heard of a regular AA battery exploding?
This happened to me today. I have a remote control for a VCR unit (yes, i still have one), which uses 2 AA batteries. In my case, i had Duracell's fitted. Why not. (Update from Duracell Below)
As i typed away on my keyboard, I heard a brief hissing noise behind me. Turning to see what it was i heard a massive bang. It was like a bulb light exploding, but about 5 times as loud.
But worse, i saw the remote control actually jump off the coffee table. Not a lot, but it certainly jumped. Letting it settle, i opened up the panel on the back to find that one of the batteries had exploded and was leaking acid all over the inside of the remote control.
I thought that perhaps the batteries must be old, as they weren't exposed to any heat at all. But no. The Duracell Alkaline battery has an expiry of March 2011. That's 2 years away!
I have seen what happens to batteries when they are exposed to extreme heat, like in a fire. But exploding in a dormant unit like this? Seems very odd. Be scary if they were being used in a kids toy.
I certainly wouldn't have expected a Duracell battery to explode. Maybe from a cheap and nasty battery, but Duracell batteries are supposed to be reliable and long lasting.
For reference, these are normal batteries that you use in your home and other portable electronic equipment. The official name of the them is a nickel-metal hydride cell, or NIMH battery.
Has anyone else seen or heard a battery explode? I'm sure its not just AA batteries. In fact AAA's and 9 volt batteries may have the same issues. Comment below, id be keen to hear if this is common.
UPDATE: I was fortunate to receive some information from Duracell, which i am providing here. It may provide some clarification on this issue. (turns out its not acid after all, my mistake) And for the record, i will still be using Duracell, i still think they last the longest.
-Duracell stands behind the product, so you can contact us to report your incident (check the contact/guarantee info for your region at http://www.duracell.com since it varies around the globe.)
-Most batteries are equipped with a vent that allows any built-up pressure to release – that’s why you may hear a pop sound instead of a bigger effect if the vent were not present.
-Batteries can vent for a variety of reasons when the cell is being asked to perform, but can’t release its power correctly through normal device use. For instance, this can happen when a cell’s metal connection points are “tricked” into shorting by contact with other metals, such as loose change in a pocket. It can also happen if the cells are inserted backwards in a device or when a mix of battery brands of differing strengths are used. It also can happen if two cells of varying age/strength are used, which can force one battery to work harder than the other in a two-battery device example.
-Alkaline batteries contain no acid (a much-older chemistry that no longer is commonly used) – in fact, alkaline is on the other end of the ph scale. You should clean any surfaces with water, but only prolonged exposure would be likely to cause irritation.
Contrary to my previous opinion, Kevin Rudd has indicated that the boost to the first home owner scheme may well be ending on June 30 2009 as originally planned.
Speaking in Perth, Prime Minister Rudd said that "It's had a real effect, we're still measuring its full effect, but I think it's very important that as a community we understand that deadlines are imposed for a particular purpose...It's had strong useful results so far, but I've got to say, that all good things must come to an end."
I will be very pleased if i was wrong. I have said before that the first home owner grant is a false economy - all it does is allow competing players to push up the price of homes. And it helps to line the pockets of the banks and construction companies.
So if you do want to purchase a home with the boost to the grant, following Kevin Rudd's advice, make sure you enter into a contract before June 30 this year.
However, don't forget that once the boost to the grant is gone, you will see some benefit in lower house prices. And the $7000 first home buyers grant will still remain, along with various different benefits in each state.
Mahmoud Ahmadinejad, President of Iran and an all round crazy loon. Ahmadinejad recently gave a provocative speech at the UN Racism Conference, yet another of his ongoing rants against Israel.
Thankfully, Australia and other countries including the United States, Germany and Netherlands boycotted the conference. They feared that the conference would just turn into an anti Semitic forum. And how right they were.
At least some of the delegates had the good grace to walk out on the speech by Ahmadinejad. See the video below.
The Raise a Glass Appeal is an initiative sponsored by the VB beer label - the biggest selling product in the Fosters group. Its stated aim is to promote the RSL and Legacy.
However, the fundraising wont be including the Queensland RSL. Their State President has said that "This is just a promotional exercise on behalf of VB to increase its market share here, you don't have to be Einstein to work that out."
I tend to agree. While the ads are well made, and they feature real people, they are also just promoting beer - in this case the VB brand. They ask you to head to the website, which is not surprisingly in VB colors.
VB will donate $1 from every case of beer sold during April and they will also give 1500 kegs of beer to clubs for use on Anzac Day. They are aiming to raise one million dollars through the appeal which will run until June.
You can also fill in a donation form on the raise a glass website - but of course every page proudly displays the VB Logo. Its actually pretty offensive. But here's a thought, instead of promoting this site on every ad, if you really want to support the RSL and Legacy, how about sending people to those sites directly?
All of Queensland's RSL's voted against being associated with the campaign. Given the amount of alcohol problems that exist amongst returned servicemen, they quite rightly don't want to promote alcohol. Another good point.
It is blatant advertising about our most important national day - Anzac Day. And it is very irresponsible to be promoting alcohol, particularly when this is a national day with such interaction from young people - school kids in particular.
If you want to donate money to Legacy, head to their website directly, you will feel much better, trust me...
This is a video of one of the Raise a Glass ads, featuring former head of the Australian Defence Force General Peter Cosgrove.
Its not often that you catch two women fighting on the daily news. This one is between the mother and step mother of Slumdog Millionaire child star, Rubina Ali.
Last week Rubina'a father was accused of trying to sell his daughter for hundreds of thousands of dollars. It prompted this fight between the two women. Rubina's father has denied trying to sell her, instead claiming that he was trying to negotiate a new film role. Yeah, good one you useless lazy tool.
Its probably about time that Rubina was actually adopted by someone outside of India. I think her family are nutcases.
Yes, you would expect the Civil Aviation Safety Authority to investigate the near miss of a remote control plane and a commercial Virgin Blue flight landing in Perth.
Some idiot has flown this remote control model plane directly at the Boeing 737 Virgin Blue Flight, which was landing after flying from Melbourne. It is an offence to fly an unauthorised plane within 5km of an airport.
Not to mention a really stupid and dangerous thing to do. If the model plane was sucked into the jet engines, it could have caused a major emergency. We remember what happened to the US Airways jet in New York when geese took out the engines.
The model plane turns to follow the Virgin plane, but gets knocked about by the jets and crashes to the ground. Good thing. The guy was stupid enough to put this whole thing on youtube. Some other kind model plane enthusiat has dobbed him in to the Police.
Check out the video of the near miss, its been dubbed with Top Gun music and dialogue. Nice touch.
When will the CPI start to rise again?
I'm going to make a forecast which is contrary to the opinion of nearly every economist in Australia. That's not always a bad thing - most economists are wrong anyway. I'm suggesting that the inflation genie is just resting, and will be back out of the bottle and sunning itself on a beach in 2010.
While the latest figures released by the ABS suggest that inflation is under control, there are some worrying trends, and some medium to long term factors not taken into account by economists.
Yes, inflation has dropped, coming in at an annual figure of 2.5%. Even so, the last quarter saw a modest rise in inflation, of .1%. That's still a rise. The previous quarter saw a fall of .3%.
The biggest contributors to the low CPI were falling loan and deposit costs and petrol, both of which have dropped significantly. There are also lower prices in clothing and footwear as well as cheaper domestic and overseas travel.
However, some of the rises in the last quarter are significant and have offset the falls. Prescription drugs are up more than 13%, secondary education up 7.6%, fresh food up 6% and electricity up 3.6%. And in a worrying sign, rents were also up by 1.7%
So why could we see a breakout of inflation again? Too much money in the hands of too many consumers willing to spend. The stimulus packages from the Rudd Government have been moderately effective. At least some of the money handed out has been spent on the domestic economy, helping to maintain growth.
But a significant portion of the money has been saved. In bad economic times, people take a much more cautious approach. But this is money that comes on top of regular salary - ie, its not money which is generally available to the consumer. It will be spent at some point.
Disturbingly, these handouts are to people who are also saving many hundreds of dollars every month on lower interest rates. The average saving per mortgage every month is around $800, after the RBA cut rates by 425 basis points.
That's a whole lot of cash just waiting to be spent. Australians have shown no reluctance in good times to spend spend spend on various consumables and things like travel. All it will take is a moderate but sustained feeling of an improving economy. If Australians feel confident, they will spend. And they will likely move as a pack, doing it all at once.
Even before the impact of renewed spending, there are already worrying signs. Petrol has already come off its lows of just over $1 a litre and is slowing creeping upwards, rents are on the up and the housing market for buyers is showing no sign of cooling. It was record territory for the banks dishing out new loans over the last few months.
While inflation is within the RBA's target zone of between 2 and 3%, it wont take long when the spending starts for a sharp increase in this figure. Once the genie emerges from his hibernation, wait for the RBA to act. That means higher interest rates and the cycle starts again. And it may be sooner than you think.
Will the Rudd Government Extend the First Home Buyers Grant Boost in the May Budget?
The first home owners grant which was boosted in October 2008 to help deal with the economic crisis will likely be extended in the Rudd Budget. The boost to the grant was scheduled to finish on June 30 2009.
UPDATE: PM Rudd Signals end to First Home Owners Boost.
The first home owners grant was established in 2000 to deal with the effects of the GST. It commenced at $7000 for established dwellings and $14,000 for new buildings. The latter was phased out, and it reverted to $7000 for all structures. Until October last year.
It is highly likely that the Rudd Government will be extending the First Home Owners Grant boost in their Budget. The time frame for the extension could be until the end of the year, although i think it more probable that the boost to the grant will be extended initially then phased down over the next 18 months or so. The initial $7000 first buyers grant will remain.
Personally, I believe that the first home owners grant is a false economy, doing nothing but push property prices up by competing players. When the grant ends and interest rates rise, the sub $500,000 market could suffer a serious downward price move. Its why i don't think the boost to the first home buyers grant should be extended.
Nevertheless, the Rudd Government recognise the popularity of the grant and the boost. And they are mindful of the effect of the global financial crisis and rising unemployment. They will want to do everything they can to keep construction going and people in work. (Not that there is any shortage of work for tradespeople - just ask one of them)
For reference, the grant from the Federal Government between October 2008 and June 30, 2009 is as follows:
For existing structures: $7000 + $7000 boost = $14,000
For new structures (off the plan/newly built): $7000 + $14,000 boost = $21,000
Different states also offer different grants on top of the above money. For example, Victoria will give you an extra $3000 for an existing home and $5000 for a new home. If you chose to buy a new home in regional Victoria, they will add on another $3000. In New South Wales the government will give you an extra $3000 for new homes.
Check in your State to find out more.
I love redundant studies conducted by obscure research organisations. The latest one is from the London School of Hygiene & Tropical Medicine and relates to fat people and global warming.
I'm not sure what hygiene has to do with tropical medicine. Is there really a connection there? And whats with a tropical medicine body doing studying the effects of fat people? People actually fund these organisations. Governments usually. That's your hard money at work, just so they can tell you things you already know.
Anyway, apparently their research has concluded that fat people have a much greater impact on global warming or climate change. Genius really. We needed a study to tell us that.
Fat people consume more food, and are more likely to use cars and other fuel powered vehicles to get around. The research has concluded that fat people are responsible for about 1 tonne more emissions every year than a thin person.
They also take up much more room wherever they go and wear bigger clothes. That was my research. Took me less than 10 secs and i didn't get paid a cent.
The solution to the obesity crisis and the effect on climate change? Eat less. The very funny Ricky Gervais sums it all up brilliantly.
These are the latest ads from Apple for the Macs. Its one of the best advertising campaigns in the last decade in my opinion.
I'm still astounded at the recovery of the Apple brand over the last 20 years. I remember a time when the PC had almost all the market share, and we scoffed at Apple users. They were almost consigned to a fate matching the Beta video recorder.
But how times change. Every person i speak to who uses a Mac just raves about them. Simply, they just work. Its a good business lesson. Make your product better than the competition, and so long as you can keep the business going, you can succeed.
Seems the creators of South Park aren't aware that John Howard was defeated in the 2007 election. Howard features in a recent episode of South Park that hasn't yet been aired in Australia. Its only a small snippet, but its definitely John Howard, who appears along with other world leaders. See the Video below.
I wonder if Kevin Rudd is upset with the South Park creators. But with Malcolm Turnbull languishing in the opinion polls, Kevin Rudd may be around for a while yet. He could yet get another look in. Now if only he could get a spot on The Simpsons....
Kevin Rudd has hinted that yet another economic stimulus package may be offered in the May 12 budget. If the stimulus package includes more handouts to families, it will be the third wave of handouts in 6 months.
It is still unclear what form the stimulus package will take. However, the second stimulus package included significant extra funding for infrastructure, including upgrades to every school in Australia.
But more money for families? I think this would be a very dangerous approach. Because of the decrease in tax revenue, the Rudd Government would have to borrow even further to pay for handouts. It raises the risk of a budget deficit beyond our wildest expectations.
While most taxpayers were happy to see a $900 bonus payment in April, there will be serious concern about the long term cost of giving money away. With interest rates now at 50 year lows, families with a mortgage are saving hundreds of dollars every month. Giving more money away to these people stinks of vote buying. But it is very bad economics.
While the Rudd & Swan budget is set to increase the aged and disability pension by as much as $35 per week, there has been little word on other payments. It is likely that to compensate there will also be one off payments to self funded retirees who don't receive a pension.
And to keep faith with the rising unemployed, you can bet that the Newstart Allowance will also rise by at least the same as that offered to other pensioners.
I'm of the opinion that aged and disability pensioners get paid about the right amount, but there should be an increase for the unemployed. As long as there are tight restrictions to ensure that the payment isn't abused. Expanding the work for the dole scheme is a good start.
While it has been confirmed that we are in a recession, unless you are unemployed, you have more money in your pocket every month than you did 6 months ago. Much more. Why would you deserve more free money from the Rudd Government? Perhaps Australians are just greedy.
When will we see a rise in Interest Rates?
It doesn't matter which economist you listen to. Each will give you a different perspective on how the future looks for the world and Australian economy.
I'm not an economist - but given their predictions are all over the shop, I'm going to offer my opinion too. I reserve the right to say i told you so, just like some economists who are lucky enough to have their theories proved correct.
Interest Rates. One of the more emotive set of words - powerful enough for even the most news averse people to pay attention. Australia has a very high rate of home ownership of around 70%. That is, those who are buying or who have paid off their home loan mortgage. Its one of the largest rates of home ownership in the world - and therefore we can be very affected by movements in interest rates.
So what is going to happen over the next couple of years? I have said previously that higher interest rates will hit soon, but when exactly will that be?
I'm predicting that by March 2010, interest rates will be on the rise again. And if the RBA are concerned about an overheating economy, it could be an aggressive strategy of rate rises. My tip would be a 2% increase from their current levels by the end of 2010.
I'm taking a lead from the banks on this one. Following their refusal to pass on the Reserve Bank's official cut to interest rates, the major banks have started to raise their mortgage fixed rate.
Firstly, not cutting their rates in line with the RBA indicates that they may be at the end of the downward movement. This is despite what the RBA does over the next few months. Even if the RBA cut interest rates for the remainder of 2009, the cut is unlikely to be passed on in full or at all by the banks.
Secondly, the increase to the long term fixed rate mortgage option suggests that the banks are betting that interest rates are headed up soon. Its a common strategy by banks when they forecast higher interest rates in the medium term. When official interest rates are falling, fixed rates are the bank's best friend. But not now.
The RBA will be looking at a range of factors before they start raising rates again. The most important of these will be inflation and unemployment. If they see inflation on the rise, and unemployment start to dip, they will be very keen to raise interest rates very quickly. If that is followed by strengthening retail sales and increased commodity prices, they could well take a very aggressive approach.
In theory, a quick upward move from historic lows shouldn't be a problem. But there will be a concern that new home buyers have overcommitted themselves with unaffordable home loans. They can thank the banks for that problem, its our own predatory lending crisis.
There is also the fact that the longer interest rates stay at low levels, the more people become accustomed to more money in their pocket every month. Some people will have used this extra money to commit to other purchases, some of which will be unsustainable with even a moderate interest rate hike.
Even if the Rudd Government will be worried, the RBA wont be factoring these personal issues into the equation when they decide to raise rates. They will be more concerned with an overheated economy.
The influx of massive new money from government stimulus packages around the world could well come back to bite us in the form of inflation. The inflation genie was out of the bottle in 2008, having a rest in 2009, but will be well and truly sunning itself on the beach in 2010.
For the mortgage holder, that means higher interest rates. If the RBA gets the mix right, you are likely to see home loan variable rates at around 7%. If they get it wrong, don't think for a moment that variable rates wont hit close to 10% again. If you have a home loan or are thinking of getting one, please be mindful of that fact.
The great folks at Disney's Pixar are set to bring us their latest installment in animation. This one is just a little bit different than other movies from their stable, which include Monsters Inc., Cars and Toy Story.
Up is an adventure movie featuring 78 year old Carl Fredricksen as its star. Fredricksen has been longing for adventure for all his life - this time its going to happen. But his adventure accidentally includes a young boy scout.
Up features the the voice of the talented and very hard working Edward Asner, as well as Christopher Plummer and John Ratzenburger. There is also the voice of an actor known as Jordan Nagai playing the boy scout, who appears to be a first up performer.
Check out the trailer - i think this one is going to be big.
Former Hi5 kids star Kellie Crawford has come under attack for choosing to pose for men's magazine Ralph in raunchy lingerie. Women's and family groups have accused her of betraying all the kids she performed to for 10 years.
Melinda Tankard Reist from Women's Forum Australia (whoever they might be) said that Crawford is sending a negative message to young girls.
"The fact she's posed on a cover is particularly problematic because magazines like Ralph are on shop shelves at kiddy eye level. It's an abuse of her position with tens of thousands of little girls looking up to her." Reist apparently said.
What is with women's groups and hyphenated surnames anyway? That's a whole new topic.
Yeah, Kellie Crawford shouldn't have a life after Hi5 should she? She should fade into insignificance just because women's groups say so. Live and let live i say. People like Reist should go back to rooting for the Maternity Payment which is due to be delayed by the Rudd Government.
I cant say i love the photos, they are altogether a bit trashy for me. But i defend her right to do with her body whatever she chooses. Anyway, we all know that it was the Dad's that really loved Hi5. I'm sure the kids prefer the wiggles.
About Just Grumpy
