More Gotti rent seeking today:
Fear is suddenly driving the actions of a large rump of Australians. It is seen most clearly in the housing and apartment markets of Sydney and Melbourne. To a lesser degree, that housing fear infects most other mainland capitals.
…For years people thought lower dwelling prices would attract first home buyers. Some are entering the market, but the bulk are too scared because they can see that their friends have already lost the value of their deposit in the slump and the regulation authorities are helping to force banks to drive prices lower. The first home buyers can see a vicious circle developing as the credit squeeze lowers prices and those lower prices reduce the amounts banks will lend. They hold back their buying.
…In the banks themselves, there is fear from the branch people to the CEO as they attempt to loan using the new rules while at the same time they face monumental claims as a result of past management errors.
…During 2019 Australians will come to understand that the big sufferers from any excess banking punishment and the draconian lending rules by authorities will be ordinary Australians.
Lower house prices are needed. The ponzi has gone way too long. The structural adjustment that lower prices will bring will put Australia back on track away from speculation that marginalises entire generations from access to basic needs such as owning a home and retards our hopes of sustainably higher wages and living standards. You can’t trade house to one another forever no matter how many foreigner you inject in defiance of the public will.
Also, when campaigning to do so also explicitly endorses proven criminal behavior then you’re an accessory after the fact, Gotti.
Yes, there will pain. And it will be more difficult for some innocents to get mortgages. But with lower house prices and price rises based upon income growth, they will finally be able to save and buy homes as a reward for effort.
Rather than Gotti and his mates enjoying their exclusive parlour game.