For the housing market attuned, the trajectory of the national property narrative has shifted in recent days from its usual mania towards outright lunacy. Let’s recall early 2015 when MB was waging a desperate (and ultimately successful alas too late) campaign to get the RBA and APRA to apply macroprudential tightening:
With warnings suddenly flying thick and fast, the history of bubbles has never seen the likes of what is unfolding in Australian property now.
Some bubbles have sprung from unlikely sources such as tulips. Others have inflated around bright ideas that held little reality such as the South Sea Company. In stock markets bubbles have certainly been destructive but equity can handle that and they have also left historic legacies of technological advancement. The Roaring Twenties was one, built upon expanding railroads. The millennial tech bubble was another, launching the internet.