rba: housing bubble threatens nation

http://www.theaustralian.com.au/news/housing-bubble-a-threat-to-recovery/story-0-1225755726442 July 29, 2009

"....RESERVE Bank governor Glenn Stevens has warned that Australia is at risk of creating a dangerous property bubble inflated by low interest rates and the first-home buyers grant, despite delivering an upbeat outlook for the domestic economy...."

This was 7 months ago when the bubble (as big as it already was) has grown dnagerously much bigger still. After all, it see the bubble as dangerous (who blames Glenn Stevens when after all this is the same thing that brought America to it's knees).

What is the RBA going to do ??

Quickly fire off a salvo of back-to-back 0.5% hikes and then pray.

or

Do a death by a thousand cuts by hiking by 0.25% every month until the whole house of cards come tumbling down ?