''Finally, someone in power starting to acknowledge that there is potential for a bust if nothing is done.''
Possibly.
I personally dont buy anything that Stevens says. He is a career central banker with the thinking that comes with it- plain and simple - 'bubbles, bubbles, bubbles, its not my fault' variety. He is just trying to get himself acknowledged and on record, that he did warn about house prices at some point during his career.
Australias massive pile of private debt lays squarely at the feet of the reserve bank. At first it was a bubble before the GFC and now when they dropped rates 4%, its even bigger. Probably one of the only OECD countries that didnt deleverage.
If they really wanted to do something about lending, then they would just increase the reserve requirements at the banks, which is exactly what should be done after a world wide credit binge. But they arnt doing that, because to do so would slow lending and thats what they are afraid of.
Aussie money supply year 2000: approx 500 bill Aussie money supply year 2010: approx 1,200 bill
