Aust reserve bank wants to take medicine?

[marvenger]

"It's a mistake to assume a riskless, easy, and guaranteed way to prosperity is just to leverage to property"

what Stevens is really thinking: damned if you prick, damned if you don't prick. Just try and cover your arse.

http://www.smh.com.au/business/rbas-...0329-r5y5.html

[GRG55]

Re: Aust reserve bank wants to take medicine?

"It's a mistake to assume a riskless, easy, and guaranteed way to prosperity is just to leverage to property"

what Stevens is really thinking: damned if you prick, damned if you don't prick. Just try and cover your arse.

http://www.smh.com.au/business/rbas-...0329-r5y5.html

...“There are not enough new houses being built to accommodate a rapidly growing population, and this is putting upward pressure on prices and rents,” said Brian Redican, a senior economist at Macquarie Group. “This leaves policy makers with the Catch-22 of having to balance the risks of warding off rising house prices with increasing interest rates, while at the same time trying not to discourage stronger residential construction.”...

Looks like there's an obvious solution to the housing shortage in Australia...encourage a lot of illegal immigration from down under to California. There's lots of surplus housing inventory that needs to be soaked up...and they can still surf.

Even Mula Man should approve of that...

[marvenger]

Re: Aust reserve bank wants to take medicine?

with zoning laws and shithouse public transport govenments are in control of the supply ceiling. I'm still sensing long, drawn out, painful, maintaing the fiction policies. Has there ever been anything other than mass fiction?

[GRG55]

Re: Aust reserve bank wants to take medicine?

with zoning laws and shithouse public transport govenments are in control of the supply ceiling. I'm still sensing long, drawn out, painful, maintaing the fiction policies. Has there ever been anything other than mass fiction?

\

I think the Pacific Rim is the last holdout of the global real estate bubble. It's just a matter of time before Sydney, Shanghai and Vancouver follow the same busted housing market pattern as the rest of the world.

[marvenger]

Re: Aust reserve bank wants to take medicine?

people here are still just willing to sacrifice everything for a home..I know someone earning 80k thats willing to buy a 3bd unit for 800k with harldy a blink. She thinks she'll be unable to afford it if she doesn't get in now.

[GRG55]

Re: Aust reserve bank wants to take medicine?

people here are still just willing to sacrifice everything for a home..I know someone earning 80k thats willing to buy a 3bd unit for 800k with harldy a blink. She thinks she'll be unable to afford it if she doesn't get in now.

I rest my case...

[marvenger]

Re: Aust reserve bank wants to take medicine?

I know but there is so much real illusionary (i'm struggling for words) force backing these views that I can totally understand where she's coming from. I think one more leg down in the market and it might be the proverbial straw that breaks the camels back. They brought forward a lot of first home buyer purchases with the giveaway, so there's definitely less ammo, but then they've just relaxed laws on foreign ownership so there's some more.

[Shakespear]

Re: Aust reserve bank wants to take medicine?

rapidly growing population

I suspect that breaks on this are already functioning in the developed world. Future prosperity is looking less and less like Reality and more like a Dream to the young. Hence diminished desire to start families (falling birth rates) and more anxiety about what the future holds.

The sooner this happens the better IMHO.