As house prices tumble here comes the call for “stimulation”

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by Chris Becker

You can’t keep a good economic Liberal down. Here’s the latest attempt to shore up the multi-trillion property market with the Treasurer calling for the banks to get cracking on those government subsidised printing presses. From Skynews:

Treasurer Josh Frydenberg is demanding banks stimulate ‘affordable and timely’ lending after revelations Australian house prices have suffered its worst year since the global financial crisis. Mr Frydenberg used the latest figures by CoreLogic to renew his attack on Labor’s election pledge to curb negative gearing, claiming the policy will worsen the housing market slide.

No carbon tax – that’s a distortion of price signals for the energy market! Stop subsidising car manufacturers – let the free market assign winners and losers! Retirement savings can be better run by my mates at Macquarie – trust me! Privatise the ABC! Because, yeah!

The cost of living under a roof is falling? Oh my, we can’t let that happen. We must intercede in the market!

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Undoubtedly the pressure is now on the RBA to cut. But our L-plate Treasurer can’t wait for that. He wants sub-prime back today, before we’ve had the royal commission announce its findings, making him as corrupt as any banker in the RC’s sights.

Of course, the forthcoming election and Labor’s negative gearing reforms has nothing to with it!