http://www.ambitgambit.com/2007/10/16/gaffe-and-counter-gaffe-on-interest-rates/ Ambit Gambit Sat, 11 Feb 2012 19:31:04 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.ambitgambit.com/2007/10/16/gaffe-and-counter-gaffe-on-interest-rates/comment-page-1/#comment-1937 Graham Young Tue, 16 Oct 2007 21:26:46 +0000 http://localhost/ambit/?p=2424#comment-1937 I only retracted part of the post. Swan used a figure which sounded suspiciously round and I tried to enlist readers in helping out with the figures, which Stephen did. I also went away and did my homework and posted the result when I had. The general point still holds - Swan appears to be equating the cash rate with the mortgage rate. I only retracted part of the post. Swan used a figure which sounded suspiciously round and I tried to enlist readers in helping out with the figures, which Stephen did. I also went away and did my homework and posted the result when I had.
The general point still holds – Swan appears to be equating the cash rate with the mortgage rate.

]]> http://www.ambitgambit.com/2007/10/16/gaffe-and-counter-gaffe-on-interest-rates/comment-page-1/#comment-1938 Damon Hall Tue, 16 Oct 2007 20:19:03 +0000 http://localhost/ambit/?p=2424#comment-1938 How embarassing Graham! You post something in the morning and then have to retract it before sunset!!! Whether we are talking RBA cash rate, bank bill rate, fixed mortgage rate, variable rate or bank overdraft - a 25 basis point understatement is 25 basis short of the mark. And as Stephen has pointed out - that is $50 a month on the average mortgage. How embarassing Graham! You post something in the morning and then have to retract it before sunset!!!
Whether we are talking RBA cash rate, bank bill rate, fixed mortgage rate, variable rate or bank overdraft – a 25 basis point understatement is 25 basis short of the mark.
And as Stephen has pointed out – that is $50 a month on the average mortgage.

]]> http://www.ambitgambit.com/2007/10/16/gaffe-and-counter-gaffe-on-interest-rates/comment-page-1/#comment-1939 Graham Young Tue, 16 Oct 2007 17:36:09 +0000 http://localhost/ambit/?p=2424#comment-1939 Thanks Stephen. I actually corrected the post above. The average mortgage is just shy of $240,000, and .25% is close enough to $600 that it's not worth arguing about. I would have taken the par down, but it's sort of against the spirit of blogging to touch it once it's up, so I corrected it, and will have to live with the consequences! :-( Thanks Stephen. I actually corrected the post above. The average mortgage is just shy of $240,000, and .25% is close enough to $600 that it’s not worth arguing about. I would have taken the par down, but it’s sort of against the spirit of blogging to touch it once it’s up, so I corrected it, and will have to live with the consequences!

]]> http://www.ambitgambit.com/2007/10/16/gaffe-and-counter-gaffe-on-interest-rates/comment-page-1/#comment-1940 Stephen Lloyd Tue, 16 Oct 2007 16:21:08 +0000 http://localhost/ambit/?p=2424#comment-1940 A 0.25% increase is $50 a month on a $300,000 loan, which is the figure all the media outlets used when the rate first went up. So I am guessing Swan or his staff googled old media stories and did $50 x 12 = $600. A 0.25% increase is $50 a month on a $300,000 loan, which is the figure all the media outlets used when the rate first went up.
So I am guessing Swan or his staff googled old media stories and did $50 x 12 = $600.

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