ScoMo wants his property bubble back

He said as much during the election campaign as defended to the death property speculator tax rorts:

We want to see more first-home buyers in the market, absolutely, and we don’t want to see people’s house prices go down” – Prime Minister Scott Morrison, 13 May 2019.

He also installed a huge first home subsidy from early next year that effectively reduces the need for first home buyers to save a 20% deposit to just 5%, with tax payers guaranteeing the balance.

His immigration policies are a giant lie designed to fool everyone that there have been cuts when in fact his Budget projections show unprecedented flows of people.

His fiscal policies are screaming that the Government has no desire or designs on boosting growth with fiscal spending. On the contrary, the drive for a surplus will force the RBA to cut the cash rate to 50bps in the next six months or so. And tax cuts are just more income for mortgages.

And today we get the coup de grace, at the AFR:

Assistant Treasurer Michael Sukkar will press financial regulators to review their restrictions on bank lending to help ease a credit squeeze and to “get credit flowing” to home borrowers.

Banks and the property industry are worried stricter enforcement of responsible lending laws by the Australian Securities and Investments Commission and an unnecessarily high 7 per cent interest rate buffer being reviewed by the Australian Prudential Regulation Authority are choking off credit to potential borrowers.

Mr Sukkar, who is also Housing Minister, told The Australian Financial Review in an interview in his Canberra office that he would “bring together” ASIC, APRA and the banks to help streamline mortgage approvals after bankers became too conservative in assessing loan applications in reaction to the royal commission.

This is all straight out of the John Howard playbook of economic mismanagement.

Once more into the housing bubble breach.

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