Just so you’re in no doubt about the absurdity of Australia current macro economic settings, here is what happens when you privilege housing speculation over a competitive economy. As housing finance was released this morning and housing speculators partied hard:
Our tradable sector took it just as hard in the team:
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A zero sum game if ever there was one, except that the speculation will likely reverse at some point and so will the dollar but the tradable business that used be there won’t be anymore so it’s actually a negative sum in the long term.
That RBA sure does know how to party!
