lax lending standards, page-14

each successive economic cycle central banks around the world have lowered their rates to new lows, it is a direct consequence of lax lending standards, a standard that can only be fixed by much lower LVRs -if you want evidence, go see what they are doing in China with their LVRs, they are raising deposit amounts all the time and it is the best way to fix this problem

in Japan and the US the low (interest rates) is now zero and it has little effect anymore in reflating the housing market

Reflating the housing market is the methodoly that is used to fool people into believing they are richer because their houses are "worth" more - even if the intrinsic value is the same and all that has happened is the supply of money has increased

what these clowns who embrace this philosophy of inflationary house prices dont understand, is the pool of new buyers will eventually diminish and the deck of cards collapses (from a participation point of view its simply a ponzi scheme) the precise scenario which most likely occurred in Japan - I dont recall lax lending standards(or even unemployment) in that country being the contributing factor in that housing market getting utterly smashed

So as far as to say if unemployment rises ,the rba eases interest rates (to new lows), that has EVERYTHING to do with lax lending rates

Lowering to new lows is exactly what they(central banks) do, until you have a huge property bubble like Japan and at one point the banks were paying people to lend their money!!!

go figure!