Regulators getting hammered by overheating housing: ABC, The Business

The last instalment of the ABC’s property bubble special aired tonight, focused on the “biggest headache in decades” for regulators trying to breath life into the economy, while the housing bubble accelerates on cheap credit.

You can watch tonight’s segment here – Getting hammered by overheated housing

In recent months, the property bubble has prevented the Reserve Bank of Australia from cutting the official cash rate. (‘RBA holds off playing with fire‘)

» Getting hammered by overheated housing – The ABC, 16th April 2015.

» Property bubble a Macroprudential challenge for regulators – Who crashed the economy, 22nd October 2014.


  1. @ 1 average bloke:

    Same here, but the point wasn’t explained for the plankton ie. How it should be applied to Aussies: Even though the supply of shells has increased, and the price of the f#$%^@ing coconut has risen: the people get paid in the same lowly number of shells per unit of time, but they now have to pay INTEREST on the price of the f#$%ing coconut.

    I’m sure the end is nigh: Why else would the SA government run the risk of ‘talking about’ (f#$K Jaime Weatherall, talk’s all you do bud) an annual tax on home ownership rather than stamp duty at time of transfer: They know stamp duty is a function of the rate of property title change and increasing values.

    A property value collapse will effect both to the down side once in full swing: It’s also another swipe the millions of retires who sold EVERYTHING at retirement to sink into the largest house they could afford, while still getting the aged pension: Tax these people annually on their house: I’m glad they are trying to get more revenue out of this sort of self-entitled pig, but they did pay full tote stamp duty when they purchased the house…. It’s going to be a very, very touchy topic.

    But when did the government care about the people? Not in the last 30 years that I know of.

  2. The Business program coverage of the housing bubble horror story got even worse when they covered the NZ market which is more overheated than here. What they failed to mention is that the Big 4 Oz Banks own 90% of NZ banking. So by “coincidence” we have our under capitalised banks responsible for 2 of the most overheated housing markets in the world. My guess is that when it all goes belly up, the Aust. Gov. won’t be able to bail them out so bail-ins will have to be the order of the day. Don’t rely on the deposit guarantee either as there may not be enough funds left over to cover it.

  3. The regulatory body APRA’s inability to control the banks’ lending policies is summed up by Ayn Rand’s famous saying “You can ignore reality, but you cannot ignore the consequences of ignoring reality”

  4. We can still lower the cash rate down to boost the economy(as a whole). They can then put a reign on the real estate issue by having a new look on “negative gearing”. They can either put it in quarantine (remove for real estate investments only) or modify it to favour only investments on new properties – which is the one that truly helps the affordability of rental housing.

  5. Many houses in Sydney have about the same structural integrity as a coconut anyway. It’s just a f*ckin house!

  6. Classic, wont forget that one in a hurry…..never thought 5 words could sum up the situation so well.

  7. Abbott and Hockey MUST GO!!! They are guilty of gross mismanagement, wasteful and negligent in the use of public funds, incompetence and corruption. They are also guilty of betraying the trust of the Australians people by not protecting them against vested interests including the banks and Real Estate Industry that leech off the back of the taxpayer. BOOO them and be very critical of their actions. Abbott and Hockey MUST GO!!!

  8. 10 Agreed, but replaced by whom? As far as I can see they are all in league with each other. The system needs to change!

  9. @ 10.

    Yep, let’s boo the current government. That’s sure to fix our problems…. Abbot and Hockey haven’t won themselves many friends, but they aren’t as out of control as the other mob was… Don’t be fooled into thinking the ex-union boys are immune from the banks pressures….OH, what’s that? Rudd and Gillard set up the original bank bail out package: Signed, sealed and sitting waiting…

    Never mind the real issue started many years ago, and was completed in the 70’s when USA left the gold standard in it’s entirety.

    There is no way, any party, new or existing could rally enough support to dispose of the banks: Our economy would simply implode: We have no industry left, no real food industry, no jobs: So ultimately inflation would hit the roof, unemployment would be worse and asset prices collapse…. This should have all been nipped in the bud many years ago: But the banks, and pollies, are smooth operators……..

  10. 11. There are a few options. We can vote for any other party other than the corrupt labor/Liberal parties monopoly that have ruled this country for decades. We can also research the candidates that are asking for our vote. Are they from a privileged background or have worked for an honest humble living all their lives? Do they have a massive property portfolio? Take a more active role by voicing concerns and do not easily promise your vote unless their actions show genuine concern for the majority and not a minority of Australians. Or maybe you do not vote for any politician and party and just place a list of your complaints into the ballott box. Maybe these ideas will get the ball rolling out for some other ideas also of which is always welcomed.

  11. @10 THEO, @11 Rupert, @12 Matty, @13 THEO,

    Politicians purpose is to protect the rich and the poor from each other. They’ve overtly taken sides, they’ve always been on the rich side, now they don’t even pretend they’re doing so.

    Tax, welfare, medical services, investment and property, even charity services all now overtly bend toward to upper class.

    Best we can do is to try dodge and side-step whatever is imposed on us, and if possible, gain at least some advantage for ourselves (as individuals).

    Don’t concern yourself with others, unless you and they can be of some mutual assistace to each other. Just look around at your fellow person(s) in general, bad isn’t it? Any hope?

  12. @ Theo

    Step 1 to changing the political system is to make all donations and lobbyists illegal. Also no corporate/Govt jobs for the boys after politics.

    Step 2 bring in online voting for major policy decisions, eg attacking foreign countries, military spending, political remuneration etc.(The Swiss do it)

    Step 3 Abolish RBA and split banks into Investment banks and retail banks and withdraw all government guarantees and promises of bailouts.

    Too easy when do we start.

  13. So basically what we need is a revolution, and I don’t mean some namby pamby, social-media wish-list of demands which will be ignored, ridiculed and denounced – I mean a proper revolution, like France or Cuba, where the ‘head’ of government is removed (literally or metaphorically – we shall see) and replaced with a new system.

    The three ideas proposed by Morpheus are a great start. Three fantastic pillars that will change everything. But they will not happen under the current system. So, revolution it is then!

    But it won’t happen in my lifetime (don’t hold me to that), and I certainly don’t intend to be some latter day Che Guevara, so in the meantime, Plex may have a point. Ho-hum.

  14. “It’s not a political crisis, economic crisis or the crisis of war. But the crisis is within ourselves”. Heard that today, don’t know the man’s name. But that statement is so to the point and so direct. Had to pass it on good friends.

Comments are closed.