Explain to this Aussie

[pneuma]

Quote from Rationalize:

Genuine question. I've read some of pneuma's recent posts (seems like a clever guy), and wondered whether he's changed his mind by now. Perhaps we'll get a response..

No, I don't think I have. My original question generally referred to the fixed nature of US mortgages rather than the benchmark to which they are held. Seems like an awful lot of paper work to get a reduction in repayments, and something that carries significant risk if there is any possibility you are in negative equity.

or is there another question you would like my views on?

pneuma

 

[Rationalize]

Quote from pneuma:

No, I don't think I have. My original question generally referred to the fixed nature of US mortgages rather than the benchmark to which they are held. Seems like an awful lot of paper work to get a reduction in repayments, and something that carries significant risk if there is any possibility you are in negative equity.

or is there another question you would like my views on?

pneuma

Flipping it around - do you thing long term term deposits should pay the same as the cash rate?

 

[Scataphagos]

Quote from mgookin:

Good news is Bush is gone in January.

Tragic news... he was replaced by Odumbo!

 

[pneuma]

Quote from Rationalize:

Flipping it around - do you thing long term term deposits should pay the same as the cash rate?

Our cash management accounts track the cash rate as well, with a margin for the bank. The current RBA cash rate is 3.5%, and there are many on-line accounts with the same (or higher) interest rates.

https://www.ingdirect.com.au/savings/interest_rates.htm#SavingsMaximiser

http://www.rba.gov.au/statistics/cash-rate.html

So in short - yes.

pneuma