my personal opinion is not soon enough. House prices are insane and I believe them to be a noose around peoples necks at these prices. If the govvy can’t engineer huge wage inflation then they are never going to manage to lift interest rates without sending a lot of new buyers into a hole they can’t get out of. And the interesting thing about interest rates is that raising them might be forced upon us. The only thing working for us here is that the rest of the world is in a similar predicament although Australia is in the top echelons for stupid high house prices so still a huge risk.
I believe inflation will force the hand on interest rates up, that will cause asset markets to plunge, that’s the catch 22 and the answer will be a new paradigm in monetary policy. Think rising interest rates and the implementation of some form of UBI or other direct monetary stimulus. (The funny thing about UBI is that it will never be universal, there will be many demands from the government that you must meet before you’re included in their idea of universal. The path to serfdom is being laid before our very eyes).
BNL Price at posting:
4.9¢ Sentiment: Buy Disclosure: Held
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