I guess what worries me is, how much more middle class welfare will people who save their money (like me) have to provide for all the people who took on unsustainable debt prior to the bubble popping?
Negative gearing, first home buyer grant (should there be a first home renter grant, or are only people entering property market worthy of government subsidies?), those two are just the beginning if property starts to fall. I have little doubt many more subsidies will be developed to help transfer tax money from responsible savers to irresponsible debtors.
If the good news of low unemployment numbers gets turned into "but oh no, this means rates will go up!!!", imagine the reaction the sheep will have when rates start going up based on less supply of foreign capital heading to Australia to prop up our property bubble.
