The really sad thing about all this, is that a whole generation of young people are being set up for the biggest kick in the guts they can imagine.
All the first home owners grant recipients will be saddled with unaffordable debt, as interest rates invariably inch their way back to the long term average of 8-9%. Let's hope they don't overshoot any higher than that.
At the same time, many will lose one income as they start a family. Income down, costs of living up.
And as for reduced consumption and debt, it was these very factors that pumped up most of the economy & asset prices to such historically high levels. Take that away, and asset prices will revert to the long term average.
