Hi nickoo, I was very interested to see an article in relation to the 'property bubble' by a highly respected economics commentator (whose name elludes me at the moment but I think it was Ross Gittins) putting the case that one possible misjudgement being made at the moment is that after all the asset bubbles we have had recently everybody is a 'bubbles expert'.
Everybody is clammoring for the property bubble to burst and if it won't do it by itself then calling for the RBA to artificially do it.
He pointed out (whoever it was) that in real terms Australian housing is now more afforable than it was a decade ago (even allowing for the recent appreciation in prices) representing a substantially lower percentage of average income to buy, and that the RBA was almost certainly NOT going to make any interest rate increase purely with the intention of 'pr!cking the bubble'.
He put a most interesting arguement together to support this contrary point of view and if I get time I will try and find it tomorrow and post it.
