Update: It just keeps getting worse…
The X & Y generations have had their country taken from under them by the baby boomer generation – their chance to live a nice life and enjoy the same urban amenity the boomers had has been stolen. There really is no other word for it.
The only Xers and Ys buying houses that i know are either getting the money from their parents or capitulating and buying a dog-box in the boon-docks.
This is and should be a war. We need to get the grimy greedy rentseeker speculators out of the market and we need to stop all the loose speculative cash the idiots from the RBA want to pump into the economy from just heading straight to residential housing.
RBA’s successful trolling through 2011 where they continuously threatened to raise interest rates – without ever actually doing it, caused record-speed paying off of the housing debt and prevented house prices from rising; many people thought that the RBA was leading Australia down a reasonably sensible path of steady deleveraging and deflation of Australia’s housing bubble. As the mining boom peaked much earlier than either the government nor the RBA predicted (largely because they are a bunch of imbeciles), many have wondered what they will do to respond. It appears that the RBA has chosen to go full retard and re-ignite the great Australian housing bubble.
RBA has now vowed to keep interest rates at whatever level they need to be to ensure that house prices rise. Given that Australia already has pretty much the highest private debt to GDP per capita, it really can’t go much higher, meaning that interest rates in Australia will probably stay depressed…for a very long time. This is obviously bad news for savers, young people, and in general anyone who doesn’t own property.
What of course they fail to understand (or perhaps don’t want to worry about because they will be enjoying their retirement in the Cayman Islands) is that this will simply damage the economy more due to more mis-allocation of resources, more indebtedness, less savings, less productivity and so on. Once the bubble bursts, the bust will be all bigger. Why delay and not just get it over and done with?
Welp, looks like it’s time to plan to move overseas to a country not ran by complete fucking retards intent to screw over all younger generations of Australians by forcing them into a life of debt servitude.
I mean really, every dollar borrowed to buy Australia’s property does a lot of damage to the Australian economy. Over a trillion dollars of borrowed money (a significant portion of which comes from creditor countries we are allegedly trying to compete with) has all but destroyed manufacturing, construction and services and promoted a largess of retail – unsustainable without easy credit and rising house prices acting as de-facto ATMs. What exactly is the end goal that they are trying to achieve? Complete destruction of the Australian economy leading to Australia joining Greece to be reclassified as a developing market? Seems like it to me.