Interest rates - the new neutral, page-52

There is no doubt in my mind that the runaway house prices are definitely related to lax lending standards and interest rates going down and down for many years.

What is happening in the West will happen in the East IMO, except the downward spiral will be more dramatic.

APRA should have acted early. I am bemused by the fact that the Financial Systems Inquiry was very much a banker run affair. Bemused also at the fact that bankers are given so much kudos, when they make decisions to launder drug monies. They don't really care about the affordability of houses when they are very much responsible for driving up prices, but they will pull out the buyer beware card no doubt.