Negative gearing and easy credit is main culprit, period.
I've lived it. It was the serendipitous confluence [:D] of MANY factors which improved the lot of the common man, of which you only mention two. You are correct when stating that we then geared up our good fortune, but you can only do that once too. I mentioned more above but made no attempt to be comprehensive. These factors created the reverse of "The Perfect Storm", whatever that is.
If you are betting on another boom, you are betting on ANOTHER great leap forward in Australian living standards. I'm not, China is breaking down the great divide which once allowed us to live in comfort on the back of the poorest peoples on Earth. They can, and do, now insist on their share of the fruits of the earth. This will not be reversed any time soon.
Our two speed economy will continue and get worse and no politician will be able to do much about it. The risk is that we will become a divided nation of rich and poor as is the case in most oil states.
