rudd on a mission

As I see Kevin Rudd has gone to extroadinary lengths to protect Australia from the World Financial Crisis.

He is on records saying OZ banks are safe and highly regarded throughout the world for their stability.

His plan coinciding with the Reserve Bank aim to slash rates to 4% by years end will have dire implications for Australia.

Mr Rudd big mistake is the increase in the First home buyers grant.

The perception is that a dramatic interest rate drop and increse in FHB grant will again push home prices through records levels.

This will happen. IMO. We might see another mini real estate boom...

Remember....
All this while our mining industry in facing unprecedented slowdown due to metal prices falling through to the ground.

Many will lose their jobs...

Many are already geared to the hilt in credit...

A recipie for disaster.....

If you want a economy to function properly, consumers should have a deposit to purchase a home and bank gearing should be based on this.

Not a 100% LVR (no deposit)

Rudd is pushing consumers into financial instability.

It is a perfect combination. Rudd with the increase in home buyers grant and Reserve bank slashing rates(some say even lower than 4%)

regards