It does not seem to have occurred to investors in Sydney and Melbourne yet but rarely in their wonderful run of protected property capital gains (I won’t say profits given many are operating a negative carry) have they faced so many mounting risks. They are under full blown political attack from the Reserve Bank who is now point blank blaming them for high unemployment:
“We’d like the economy to grow a bit more quickly and we’d like the unemployment rate to come down a bit more quickly than is currently forecast.
“But if we were to try and achieve that through monetary policy it would encourage people to borrow more money and it probably would put more upward pressure on housing prices and, at the moment, I don’t think either of those two things are really in the national interest.”
