Links 28 August 2018

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Unconventional Economist
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  1. Banks ditch ‘sales-focused’ volume-based commissions … Sydney Motning Herald

    https://www.smh.com.au/business/banking-and-finance/banks-ditch-sales-focused-volume-based-commissions-20180827-p4zzzz.html

    Banks have stopped rewarding mortgage brokers who sell the most home loans with bonus payments, admitting the payments risked encouraging excessive borrowing, as the industry tries to lift its game amid fierce scrutiny from regulators and the royal commission. … read more via hyperlink above …

    … Lessons from Ireland 2007 … copy earlier MB post …

    https://www.macrobusiness.com.au/2018/08/apras-airbrushing-mortgage-risks-exposed/#comment-3157717

    … CONSIDERING THE 2007 IRISH EXPERIENCE …

    The unweighted average median multiples of its metros in 2007 was 4.7, which crashed to 2.8 in subsequent years … putting all its Banks to the wall and requiring bailouts of in excess of 70 billion euro … about $NZ109 billion.

    Currently the average Median Multiples for the Australian and New Zealand metros overall are about 5.9 and 5.8 respectively … refer … read more via hyperlink above …

    • Mortgage rejections skyrocket 1347% as credit crunches – MacroBusiness Australia

      https://www.macrobusiness.com.au/2018/08/mortgage-rejections-skyrocket-1347-credit-crunches/

      Via Martin North:

      DFA research was featured in a number of the weekend papers, discussing the rising number of mortgage loan applications which are being rejected by lenders due to tighter lending standards, meaning that many households are unable to access the low refinance rates currently on offer. … read more via hyperlink above …
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      More Clues To Further Home Price Falls … Martin North … Digital Finance Analytics

      https://www.youtube.com/watch?v=rVjRMXoskNo

      • NZ housing: snakes and ladders … BlueNotes (ANZ Bank economists)

        https://bluenotes.anz.com/posts/2018/08/nz-housing–snakes-and-ladders

        New Zealand and Australia have much in common, including high property prices.

        Despite signs both markets are starting to soften, many wonder if they will ever get on the property ladder.

        “Housing affordability is not just a concern for people on lower incomes.”

        New Zealand house prices have soared in value, while income growth has been more modest. Ten years ago the median house price in Auckland was six times the median household income. Now it is nine times. … read more via hyperlink above …
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        How to get a (NZ)$650,000 KiwiBuild-style house down to an affordable (NZ)$300,000 – Stephen Sellwood of Infrastructure New Zealand – NZ Herald

        https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12107783
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        Reality check for Ministers (really some … just some … asleep enviros) at environment conference | Politik (behind paywall)

        http://politik.co.nz/en/content/Environment/1400/Reality-check-for-Ministers-at-environment-conference-Environmental-Defence-Society-Gary-Taylor-Phil-Twyford-David-Parker-RMA.htm

        … extract …

        … Attendees probably left last night with more questions than when they arrived as Ministers, who in Opposition had seemed sympathetic to environmental issues were left qualifying and modifying their stance on major issues.

        This was starkly evident in an exchange between Urban Development Minister, Phil Twyford, and the EDS CEO, Gary Taylor over urban sprawl.

        Twyford had set out an impassioned description of the impact of high house prices in Auckland and advocated the linking together of transport and other infrastructure and new housing developments.

        But he also advocated the scrapping or urban-rural limits.

        “We believe that we have to manage growth on the fringes of the city,” he said.

        “If we do not allow new land to come into the supply we will never ever fix the problem of absurdly expensive urban land.

        “With good investment in infrastructure and transport, with more planning, not less to create the future urban environment that we want, setting aside areas of special value and open spaces, acquiring land for transport and other infrastructure, if we then allow the city to grow we will bring down urban land prices and it is absolutely critical that we do,” he said.

        Twyford had proposed this when he was in Opposition but, even so, any suggestion that more rural land was going to be absorbed for housing was going to be controversial at an environmental conference.

        And Taylor was quick to respond.

        “Everything makes sense except I worry about why you need to do away with rural-urban boundaries altogether,” said Taylor.

        He said that giving free reign to developers seemed inconsistent with Twyford’s overall objective of having a compact city.

        Twyford replied that it was a question of values.

        “This is for us, for Labour, for our coalition government, this is fundamentally a social justice issue.

        “Our objective is not to build a Copenhagen of the South Pacific.

        “We could build a beautiful city with a whole lot of the policies we have talked about.

        “We could build a Vancouver of the South Pacific; beautiful but utterly unaffordable.

        “I’m interested in us fixing this totally dysfunctional urban land economy.

        “If we don’t deal with affordability we will have completely wasted the opportunity that has been given to our generation.”

        Twyford said the only way to deal with the affordability issue was to deal with the land price issue and that meant dealing with the artificial scarcity of land caused by the planning system and the availability of finance for infrastructure.

        However he didn’t dispute that the Auckland region was going to become more heavily built up.

        “You know what,” he said. “In two or three generations this is going to become a tri-city conurbation between Hamilton, Tauranga and Auckland whether we like it or not.” … read more via hyperlink above …

  2. How about this:
    THE proportion of Queensland high school kids failing to meet the most basic writing standard has almost doubled in the last 18 years.

    • What shoddy parents they must have. Which means that their parents were also shoddy, for if they were good and decent then the grandchildren would not be such illiterate monsters. From this we can infer that the great grandparents should also be held in the highest of suspicion…….

      • that about describes the class system
        and the barrier which splits the common from the elite

      • Ino
        Well u caught me
        I had to change screen size and scroll down
        but nothing,
        then like the common punter, I realised I’d been had by the numbers