Two of the players that under writ Westpac’s emergency capital raising in the 1990s – Lazard Asset Management fund managers Phil Hofflin and Rob Osborn – have joined the chorus warning of Australia’s sky-high housing valuations and household debt, which are at risk of a painful correction. From The Australian:
“Property prices, bank valuations — we’re still in the pre-2007 paradigm: as soon as we get a rate cut, we go out and buy another property,” Mr Hofflin said, citing higher median prices in Wagga Wagga than Chicago.
