North Australian FISH FINDER TM forums

RBA cuts rates, again ... http://www.news.com.au/finance/economy/ ... 44539a2485

Across the world it is being shown that economic stimulus does not work very well. Or if it does work, only for a while. Japan is a leading example.

I'd wager that the RBA rate cut, while putting a few dollars in some people's pockets, will encourage more real estate speculation, and another jump in already ridiculous house prices. So more people will end up with huge debts.

End result ... economy sinks lower as potential spending money is diverted to paying off mortgages.

If they want to stimulate, they should do what Rudd did during the GFC and send money to people via bonus cheques.

Currently, share markets are flying at record highs while the world shipping index is at historic lows. Oil prices are rock bottom. Global stimulus since the GFC has created a strange situation and no one knows how it will pan out.

There is perhaps only one answer ... fish on!

love your answer - Fish On - Matt for PM