It is quite clear that Australian financial regulators have made a group decision to jawbone the Hell out of the housing market to help the RBA keep a lid on prices while cutting rates to lower the dollar. In recent weeks the heads of the RBA, ASIC, APRA and Treasury have all issued very blunt warnings to overheated property markets and banks.
You can argue whether or not this will work but I put it to you that it’s not random. Since when do these system hugging gents offer such a frankly damaging assessment of the vulnerabilities of the economy? I’ll give you the answer: never. It’s a strategy.
Except on Capital Hill where the PM can’t get enough of the bubble, from the SMH:
“As someone who, along with the bank, owns a house in Sydney I do hope our housing prices are increasing,” Mr Abbott said in question time on Monday.
“I want housing to be affordable but nevertheless, I also want house prices to be modestly increasing.
“The important thing is to ensure that our economy is as strong as possible so that people have as much resources at their disposal as possible, have jobs, so they can go out there and buy the things they need, including the housing that they need.”
For a guy who promotes the “Team Australia” version of the nation, the PM sure knows how to stick his foot in it.
