'I have to translate the words 'negative gearing' to people overseas because it just sounds crazy to have a system that rewards people for losing money.'
Many people have problem understanding financing, investment and taxation under ZIRP and deflation, Saul Eslake is not different.
Under ZIRP there are not be many NG investments, not if investors have some equity and are not geared >100%.
Agree with Menta, RBA will cut rates - the pressure is building to compensate with extraordinary monetary policy for the tight fiscal policy (regardless of who is elected in September).
