“One of the central bankers present asked: ‘What’s going on in Australia?’ to which the research economist replied: ‘We’ve given up thinking about Australia. There is no economic rationale for it’,” he said in a Deloitte roundtable on the Australian mortgage industry.
As one MB poster puts it…
The worlds most overvalued banks
The worlds most overvalued houses
The worlds most overvalued currency
The worlds most over rated (AAA) government
(one of) The worlds largest private debt issue (s)
The worlds largest financial system exposure to mortgages
The worlds largest per capita migration intake
The worlds most profoundly uncompetitive exposed sector
The worlds most concentrated media
The worlds most spectacularly financially non viable and indebted media
The words most deliberately specious politicians when it comes to doing anything about the above
“For Sydney, the numbers are just amazing,” said Diaswati Mardiasmo, PRD Nationwide’s national research manager. “If you have $1 million you can afford 49 per cent of Sydney but if you cut it down in half to $550,000, you can only afford 5.4-10 per cent. That’s a massive drop in terms of affordability”…
So we have the second most overpriced property in the world, and apparently the solution is to force younger generations to speculate on property using their retirement savings.
Nothing short of outright parasitic behaviour by a generation of self-entitled baby boomers, every economist and economic commentator has denounced the proposal. But now, PWC have some some analysis to conclude this will also blow a massive $31Bn hole in the federal budget by the year 2050.
The loss to government – which taxes earnings on super balances at 15 per cent – would be $1.1 billion in 2016-17, and fluctuate between $611 million and $993 million over the next nine years. By 2049-50, the figure would hit $2.1 billion, taking the accumulated hit to government to $31 billion, according to the estimate.
Such blatant outright corruption, at the highest level of politics in Australia.