Now I Understand

One of my long-time readers, S.I.M., posted the above video on You Tube explaining why Australia is different and does not have a housing bubble, despite overwhelming evidence to the contrary.

The video nicely captures the average Aussie’s view on the housing market.

Check it out.

Leith van Onselen

Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.


  1. Hi

    "Georgia State University's Professor Jason Reifler conducted a series of experiments that looked at whether citizens changed their views when they were presented with the correct facts."

    "A timely piece of research from a professor of politics in the United States may throw some light on just why election campaigns tend to be vacuous, fact free zones and why political manipulation is so effective"
    "… it also shows that there's an important difference between simply being ignorant and being misinformed, that is, believing that you know something but in fact being wrong."

    "People don't like being wrong. They have trouble adjusting to it and incorporating new information."

    So, Australis just "Different" and we won't have a bubble here

  2. Leith Am I missing something here:

    The house prices will go up and up…and salaries will stay almost the same,
    But people will somehow pay more and more…most investors are negatively geared(basically loosing money because they are fools)..
    No bubble will occur, cause we are different here in Aus..LOL.
    Supply and demand will solve it, suddenly out of nowhere someone will come from somwhere and buy everything…maybe from China, India or God knows where…
    Im in my early 30s make arnd 90k (not bad, above avg I believe) but have to sacrify very large portion of my salary to buy 1 bedroom!!! arnd CBD (400k), I think my situation represents a true example of a serious problem in the current property market..I am real…as an investor I would be very worried.


  3. The fact is! We can’t defy gravity forever; the law of physics underlines this basic rule. The rest of the would is going down. China is our only savoir, but when there local demand dries up and they can’t export to the very sick world economy at large, what happens then?
    Hate to be "Chicken Little" here but look around you, and keep your eye on the sky!