Poor Baby Boomers

Admittedly, I don't know much about economics but from what I can gather, people borrowing money is bad for the country's economy. Hence, the reserve bank increases interest rates to discourage borrowing, and hopefully curtail inflation. But amongst all the theory, the economists and politicians have forgotten about the little people:

The Polgars are still feeling the financial pinch. Petrol prices mean their car already spends a lot more time in the garage. And now, after another rise in interest rates, their social life is about to be crimped.

"I've said to my wife we have to be very careful where we put our dollars now because we're going to have to find the difference," Peter Polgar said yesterday as he calculated the effect of a 0.25-percentage point interest rate rise on the family's $1 million in mortgages.

"We won't be going out to dinner and the movies as much as we used to - we'll stay home and watch Foxtel."

With a $500,000 mortgage on their Allambie Heights home in Sydney's northern beaches and a similar mortgage on an investment property, the Polgars' weekly loan repayments will jump $36 a week - $1872 a year - when their bank inevitably lifts interest rates in response to yesterday's Reserve Bank move.

Boo hoo! Won't be able to drink your chardonnay ever night, eh? Life is tough.

Bloody baby boomers borrowing money to invest in real estate. Their zealous investing has driven house prices to unobtainable heights. I don't care if there are other economic factors to consider. I'm placing the blame for the fact that I'll be unable to buy house (without selling my kidneys and all my other vital organs) squarely on the baby boomers. Bastards.

I realise this is an old complaint, but reading that article this morning just compelled me to have a little rant. And yes, I would probably do the same if I was in their sandals (or whatever footwear old people wear). Still, bloody baby boomers.