After 21 years of economic expansion, Treasury is pinning its hopes on a bigger housing bubble to stave of recession after the mining boom.
David Gruen, executive director of Treasury’s macroeconomic group told a Senate budget estimates committee, “In a couple of years, when mining investment does not contribute to growth any more, we will need other things to contribute to growth,”
“One of the most obvious things [to contribute to growth] is the housing market, given that we think there is under-supply. That is a natural and desirable development and we are seeing early signs of it.”
David Gruen believes there is no sign of an housing asset bubble in Australia.
» Housing to the rescue as boom ends – The Australian Financial Review, 18th October 2012.