MB has long observed Fairfax Media’s descent from objective journalistic house into rent-seeking property parasite. Today we get that in spades at the AFR as it rallies growth lobby allies to the cause of preventing bank reform aimed at stopping mortgage fraud:
Chief executives from outside the financial services sector are concerned reforms flowing from the Hayne royal commission could hurt the economy if they dry up credit for small business and consumers.
“The risk is that if banks and financial institutions become so risk averse they slow down the provision of credit to individuals and businesses. That would be the key risk which I hope doesn’t happen,” Wesfarmers chief executive Rob Scott said.
The issue is also playing on the minds of BlueScope Steel chief executive Mark Vasella and Downer EDI chief executive Grant Fenn, whose companies either sell to, or are supplied by, small and medium businesses.
All growth lobby businesses reliant upon the dying urbanisation growth model.
I don’t blame Rob Scott for spearheading this push. He should be very worried given his divestiture of Coles and retention of Bunnings has leveraged WES to the bursting housing bubble at the exact wrong point in the cycle. Bluescope should chill. The AUD at 50 cents will be great for it (so long as LNG imports aren’t setting his energy costs).
The Hayne Royal Commission and regulators should sell any WES or DHG shares that they may hold and go ahead with doing the right thing.
