It sounds like a great idea, but it wouldn't work. What is to stop someone refinancing a year later and reborrowing the 1% they paid off the capital the year before?
It would be a minefield to try to regulate an individual's debt/equity ratios like that. Todd. On Fri, 27 Jul 2007 11:53, David Brennan wrote: > Give that man a job! > > Pity the vast bulk of the public are too short-sighted (stupid?) to accept > "cemp" because that would appear to be "government intervention" and the > government trying to hurt their pockets and steal their money (even though > it would benefit them hugely in the long run by paying their mortgage off > earlier). So instead we get a 1% base interest rate rise which hurts their > pockets just as much, doesn't benefit them... oh and just happens to lay > waste to other areas of the economy such as the export sector... Ooops! > > Rant off! ;-) > > > > -----Original Message----- > From: [EMAIL PROTECTED] > [mailto:[EMAIL PROTECTED] On Behalf Of Robert martin > Sent: Friday, 27 July 2007 11:44 a.m. > To: NZ Borland Developers Group - Offtopic List > Subject: Re: [DUG-Offtopic] RE: [DUG] basic question > > Hi > > Inflation is a BAD thing, when it is significantly greater than Growth > and caused by certain factors (wage / price spiral etc). It is not BAD > if your economy is growing and it is being caused by factors that the > economy has no control over (petrol prices for example). > > The idea of looking a housing and saying it is causing to much inflation > yet ignoring fuel prices (which push up the price of everything) is > patently ridiculous. As is excluding Interest rates from the inflation > calculation. > > There are better tools to control inflation that economists don't talk > about because they (generally) work for banks. For example what if we > had a compulsary extra mortagage payment percentage (cemp). So instead > of raising the general interest rate, add say 1% to the cemp. This > extra payment would go to the persons mortgage (paying it off faster, > and actually benefit the person), be immediate (not have a 2 yr lag) and > help savings. this would acheive the same thing as raising general > interest rates (make people have less money to spend). The only people > who would loose would be...... the banks. > > The other thing is that GDP should be factored in to inflation calcs. > I.e if GDP is 5% (wouldn't that be nice), an inflation rate of 3.5% > wouldn't mean that the reserve bank needed to put the brakes on. > > > > > Rob Martin > Software Engineer > > phone +64 03 377 0495 > fax +64 03 377 0496 > web www.chreos.com > > Wild Software Ltd > > Phil Scadden wrote: > > And inflation is a BAD thing. The problem for government is how to reduce > > consumer spending. OCR is very crude tool but other measures (limit > > overseas investment, capital gains tax, etc are dubious and very hard to > > parlimentary support for). Kiwisaver MIGHT reduce expenditure but I'll > > bet sharemarket soars as fundmanagers desparately try to find places to > > invest will in turn put more pressure on dollar. Shame government didn't > > have to balls to tackle the property market 3 years ago. > > > > > > ---------------------------------------------------------- > > Phil Scadden, GNS Science Ltd > > 764 Cumberland St, Private Bag 1930, Dunedin, New Zealand > > Ph +64 3 4799663, fax +64 3 477 5232 > > > > _______________________________________________ > > NZ Borland Developers Group Offtopic mailing list > > Post: Offtopic@delphi.org.nz > > Admin: http://delphi.org.nz/mailman/listinfo/offtopic > > Unsubscribe: send an email to [EMAIL PROTECTED] with > > Subject: > > unsubscribe > > > _______________________________________________ > NZ Borland Developers Group Offtopic mailing list > Post: Offtopic@delphi.org.nz > Admin: http://delphi.org.nz/mailman/listinfo/offtopic > Unsubscribe: send an email to [EMAIL PROTECTED] with Subject: > unsubscribe > > _______________________________________________ > NZ Borland Developers Group Offtopic mailing list > Post: Offtopic@delphi.org.nz > Admin: http://delphi.org.nz/mailman/listinfo/offtopic > Unsubscribe: send an email to [EMAIL PROTECTED] with Subject: > unsubscribe _______________________________________________ NZ Borland Developers Group Offtopic mailing list Post: Offtopic@delphi.org.nz Admin: http://delphi.org.nz/mailman/listinfo/offtopic Unsubscribe: send an email to [EMAIL PROTECTED] with Subject: unsubscribe
