Tax cuts, not rate cuts, necessary

first_imgHousing Industry Association senior economist, Geordan Murray, said there had been market improvements lately which has not yet transferred to new housing.“The recent uptick in the market for established homes should allay concerns that further falls in home prices and the housing wealth effect could continue to apply a brake on household spending.”This as CBA Economics predicted RBA would cut again by 25 basis points in February 2020, if not sooner if unemployment figures did not pick up, to an unprecedented 0.5 per cent.“Any desire for monetary stimulus beyond that point would require a much worse economic outlook and probably manifest itself through unconventional policies and QE.” FOLLOW SOPHIE FOSTER ON FACEBOOK Economists warn the only thing rising is dwelling prices, again.CBA Economics chief economist Michael Blythe said “certainly some economic commentators and business leaders question the effectiveness of rate cuts in the current environment”.More from newsParks and wildlife the new lust-haves post coronavirus11 hours agoNoosa’s best beachfront penthouse is about to hit the market11 hours ago“Our view for a while now has been that interest rate cuts are of limited use: households tend to leave their home loan repayments unchanged, so little additional spending power is unleashed; the potential boost from a lower AUD is limited by still high commodity prices and the move to a current account surplus; and the negative impact on business and consumer confidence. Income tax cuts are a better response to the pressures in the household sector and the weakness in consumer spending.” RBA Governor Philip Lowe has indicated that the RBA board is prepared to cut again. Picture: Amos Aikman/The AustralianPressure is mounting for the Federal Government to step up with income tax handouts for families as economists warn the RBA racing to the bottom on interest rates will only increase dwelling prices, not jump-start spending. Number of homes sold for profit set to rise Beach house hits market with jawdropping price MORE: Housing set for fresh record highs Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 0:58Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:58 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD432p432p216p216p180p180pAutoA, selectedAudio Tracken (Main), selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenHow much do I need to retire?00:58 The RBA board yesterday cut its policy rate to a historic low 0.75 per cent, with Governor Philip Lowe confirming they were prepared to cut further “if needed”.RBA’s hand was forced by a global trend to lower interest rates, and its desire to support employment, income growth and keep the dollar steady.CBA Economics warned “debate about the desirability of the move has heated up”, with one area — dwelling prices — getting a boost especially in Sydney and Melbourne. Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 1:40Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -1:40 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD540p540p360p360p270p270pAutoA, selectedAudio Tracken (Main), selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenQuestions for Millennial home buyers01:41last_img read more

Without Kobe Bryant, LA Lakers lose 95-90 to Phoenix & improve NBA lottery odds

first_img Newsroom GuidelinesNews TipsContact UsReport an Error Unlike Bryant’s other absences, the Lakers did not expect this.“I don’t know what changed,” Lakers coach Byron Scott said. “It was good this morning. This afternoon, it didn’t feel good.”The Lakers (14-55) didn’t look good, either. They nearly set a franchise record for fewest points in a game, something the 2002-03 team still holds with a 70-point effort in Cleveland on Nov. 5, 2002. The Lakers also set a season-low with fewest points scored in the second quarter (10 points on 4-of-24 shooting). That might bring fanfare during the NBA draft lottery in New York City on May 17. The Lakers have a five-game cushion over the Phoenix Suns (19-50) for the NBA’s second-worst record, which gives the Lakers a 55.8 percent chance of keeping their top-3 protected pick and 19.9 percent odds at finishing No. 1. But Scott scoffed at such talk. “If you intentionally go out there and try to lose games, that type of karma is going to come back on you,” Scott said. “I’m going to coach to try to win these games and I hope our players come out and try to win.” The noise level reached fever pitch, and the reasons had everything to do with Kobe Bryant.This did not involve Bryant leading the Lakers to a win, making a shot or even playing. The fanfare centered on Bryant strolling to the Lakers’ bench before watching a mess unfold in the form of a 95-90 loss to the Phoenix Suns on Friday at Staples Center.That partly explains the sudden excitement among the 18,997 at Staples Center since the game offered little to cheer until the Lakers cut a 19-point deficit in the final moments. But Lakers forward Ryan Kelly missed two foul shots and was called for basket interference on the next possession. Before that, most of the attention centered on Bryant, who missed his sixth game in the previous 10 contests because of his sore right shoulder.center_img They may have tried. But the Lakers still went 31-of-86 from the field, including poor shooting nights from D’Angelo Russell (2-of-10), Jordan Clarkson (2-of-13) and Julius Randle (1-of-9), none of whom played in the fourth quarter.Lakers reserve guard Lou Williams was the lone player both to score in double digits (30) and shoot above 50 percent (10-of-17).But does Scott find it off-putting that the NBA awards teams with better chances to land a top pick because of poor records?“I could be critical about it with certain parts of it,” Scott said. “But obviously last year it worked out pretty good for us.”Then, the Lakers landed the No. 2 pick despite finishing with the league’s fourth-worst record. Hence, Scott sounded open toward becoming the team’s draft representative again along with Lakers spokesman John Black.“Just give me great talent and chemistry, we’ll win,” Scott said. “That’s what John and I did last year.” The Lakers could not say the same thing about their own roster against Phoenix. So, plenty of fans seemed more interested in Bryant, who has consistently returned only for road games and home contests against marquee players or opponents. But Scott offered Bryant some sympathy, arguing, “When he tells me he can’t go, I know he’s hurting.”“He has to think about himself more than anything and his future after basketball,” Scott said. “He doesn’t want to do damage to his shoulder so much that in 5-10 years from now he has to go get surgery again.”last_img read more