Keen is a pretty clever bloke and has sound economic theory. However, he should have been more careful with his forecasting, as he obviously didn't factor in the tools at the government's disposal, and their reaction to the GFC, ie
- ^ FHOB - ^ Immigration - Throttled Land Release
If the government sat by and did nothing, prices could have easily gone down 40%. Given the substantial exposure that large banks have to property, it wouldn't have taken much to kick-off a chain reaction leading to a big slide in real estate values.
