Rate rise will hurt homeowners, says Howard

AdelaideNow... Rate rise will hurt homeowners, says Howard: "'It's political propaganda. It's not economic analysis.'"

We have an economy based on a business model and not a social model. It means it is about profit, shareholders, process and production. It's not about people. It revolves around making money and those who make money are very good at it at the top end of the scale...which is why the rich are getting richer. There is only so much money to go around so you have to shift it from one spot to another and the money makers are very good at creating the pockets which collect money. Part of the property boom, as I have said before, is to come in at the end with the mortgagee sales. It has happened before. It will happen again. People will make money out of those losing their properties because they have the money to buy the properties and they own the mortgages. Frequent mortgage increases can be managed but it does mean a lot of hardship . A lot of hardship because a small hike for some is a serious outlay of income for others. This will be doing harm.