greedy home sellers trying to cash in on fhg, page-11

In an earlier post I made mention of Rudd almost guaranteeing house prices will not slide too much.

Consider this: Everyday - in the next 9 months or so every first homebuyer is another person that can hold this Govt on account if there is a massive slide in real estate prices. The Govt will do whatever it takes to secure housing prices in Australia - basically locked into that scenario.

You see this is no longer about economics, or fairness Dogma, purely political expediency - they have backed this horse as it has proven the most responsive to stimulus time and again. With them having backed this horse the RBA is obliged to support them with substantial cuts in rates. The Libor rate is down hence ANZs move and more to come.

All this money out of the sharemarket HAS to be somewhere and I reckon like the oil companies the banks have been telling some real porkies. Most the bankers would not know what is happening in their own instos. Now suddenly they are flush with cash and have to lend. Watch the money start being thrown around. Next beneficiaries will be business. I have just financed equipment and not impressed with rates. That too will change as these bankers realise money will not pour back into ASX - hence they need to tempt and lend towards real estate and sound business. Real beneficiaries will be the Eastern States property that had an abortive boom recently - WA on hold with some upside potential.