The housing crisis is a political outcome from ongoing bad policy. The banks tell the govt what to do around their mortgage book. Every time we have some sort of a melt down, they crush rates, and pump money into the economy. We dont have recessions any longer. Those recessions were designed to take the zombie companies and over indebted people out of the market. Once you remove that cleaning mechanism out of the system, you automatically revert to a ponzi style system. Politicians can't deal with the blow back. People are conditioned and expect the govt to step in and save them all the time. This is an end game that cant last. The Western govt debt levels are unsustainable across the world. The entire system is now in a strong negative feed back loop. Australia having such a record strong immigration program during these times is a real problem. I think the RBA and the other banks were worried about the property market folding up under big rate rises. They would have thought increasing immigration would take up the slack of a falling market. You can see the banks just telling the govt that little story. Of course, its only going to make things far worse for the country. This creates serious inequity. The have and the have nots are getting further apart. That is a political problem these idiots cant or wont see coming. You guys will see all the banks are making record profits about now. That is a finger in the eye of everyone at this time of rising rates. It now takes nearly 74% of a families $150k pa income to service a mortgage on a standard $1.34m home loan in Sydney. Get your head around that with more rate rises to come. This is why the govt is allowing in rich visa Chinese. They are now pouring money into our over inflated property market. They are just making the situation worse. In order for dim Jim to tell everyone just how good he is at running the economy, he needs the ponzi to continue or it all comes crashing down. The problem all govts have is that it will anyway. We have longer for stronger inflation stoked by govt policies. If we see another crisis (only a matter of time) then they can only drop rates and print money. This will drive inflation even higher. They are all a bunch of short sighted numb nuts running their polices around election cycles. The govts job is not to be liked, it is to govern. Unfortunately with a hostile media, unhinged social media, activism, bad policies, political stupidity, greed and ignorance, and self interested corporates (Qantas as an example) the country will eventually break under debt in certain areas. This will bring with it more political instability. Govt's need to slow down. They need to stop tinkering with things they don't fully understand imo. Just slow down, and let things settle down. I dont think the govt will do any of these things, so we can lock ourselves into rising cost of living being normal from now on. People will want pay rises to help, and how will that help inflation!
