rate cut on its way soon, page-17

The saving grace for Bulls is the govt who seem intent on pouring more fuel on the housing market fire.

- the banks want tax breaks on deposits (will probably get it), without a corresponding scrapping of negative gearing = more lending.

- The majority of Aussies are uninformed and will love any policy that keeps housing strong.

- Govt support already announced for RMBS market last week.

The govt. seems intent on keeping housing in an unaffordable state and distorting the market. This shows a real lack of any financial acumen as to what actually happened in the US. You can't blame WALL STREET for GAMING the system of misallocation of resources the govt created. They will always do that.

Govt seems happy to keep pouring money into unproductive assets. This will lead to mal investment and misallocation of resources.

Govt measures to keep a bubble inflated or to make it bigger will only delay the inevitable and make it worse when it does occur.