Evil Anna summons two treasurers to Hades

Having swung from beloved Premier to banking lobbyist, it is clear that “Evil” Anna Bligh is the greatest public policy apostate in the Australian political economy (and that’s saying something). Yesterday, at The Australian, it was revealed that Belzebub’s handmaiden has summoned the two treasurers to Hades for a hot policy poker in the freckle:

  • The CEO’s of the big banks will meet with Josh Frydenberg and Jim Chalmers.
  • The full council of hell will convene to discuss how households can be squeezed to take on more credit.
  • According to “Evil” Anna, Australians want to see bipartisanship which means…
  • the repeal of responsible leading laws as the meeting coincides with the Senate’s consideration of such.

This as the Council of Financial Regulators expresses deepening anxiety over the bubble:

There has been some increased availability of mortgage finance recently, though lending standards are generally being maintained at this stage. The Council places a high emphasis on lending standards remaining sound, particularly in an environment of rising housing prices and low interest rates. It will continue to closely monitor developments and consider possible responses should lending standards deteriorate and financial risks increase.

As high-risk mortgages tear the roof following previous APRA easing in lending standards:

High-risk mortgage tear the roof off

High-risk mortgages to the moon

My advice to the Senate is to send Evil Anna’s foul beasts into the abyss.

Houses and Holes
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  1. Know IdeaMEMBER

    No, no, no. You have misunderstood. Debt is good and, hence, more debt is better. High LVRs allow ordinary people to have more debt than otherwise would have been the case. And as we all know: the only limit to the amount of debt that one takes on is the limit set by the banks.

    *Sigh* I am not sure which party is more muddle-headed in accepting the risks associated with these behaviours. Scratch that, yes I am.

    • happy valleyMEMBER

      Nah – when Josh the Pawnbroker gets his irresponsible lending regime through, the limit as to debt load will be set by borrowers, meaning there will be none and banks will be only too happy to give borrowers as much debt as they ask for. How good is Josh.

  2. pfh007.comMEMBER

    The only way to bring the banking industry under control is to loosen its current tight squirrel grip on the economy.

    And the only way to do that is to introduce competition and end the monopoly at the core of the monetary system by allowing non-banks and the general public the ability to operate zero interest deposit accounts at the RBA.

    This will increase the role of central bank liabilities in the monetary system and weaken the current stranglehold of debt peddler product in the monetary system.

    It is the only way we can hope to unwind the debt mountain without causing a collapse in the monetary system and a deflationary asset price bust. As opposed to stagnation in asset prices as capital begins being allocated to more productive purposes.

    It is beyond bizarre to talk about the mountain of household debt yet refuse to talk about reforming the model that is driving it.

    Unless of course Anna has been paying you a visit with her pitchfork!


    • To crack those nuts, we would need to take down the main religion in Australia. I wish it would happen but it ain’t. The lure of real estate is the only game and is ingrained in all now.
      Wouldn’t it be nice when someone thinks of Australia they think of a beautiful country, mateship, big, bold engineering or biotech companies, tech and green energy leaders, mostly Aussie companies and even great sportsmen and women (like they used to be)………….. now they just see real estate mad zombies, the big banks, students, apparent green, tourism States chopping down old growth forests for woodchip, burning forests/land that are the size of other countries, frenzied auctions for some dump and paying $500k over the $100k reserve, narcissistic politicians with no moral compass and as dumb as two bricks and the odd sportsperson that understands how to go hard.

      • pfh007.comMEMBER

        Ending the bank monopoly over deposit accounts at the RBA will make it easier to fix the asset price bubble blowing but is not the direct objective as it would still be possible to drive capital towards housing.

        It just makes the decision to do so more explicit and less hidden.

        The main objective is simply to give everyone access to the same 100% safe accounts that the banks enjoy.

        Very hard to argue against that.

  3. happy valleyMEMBER

    “It will continue to closely monitor developments … ”

    Code for sit on their hands and do nothing?

    • Know IdeaMEMBER

      I thought it may be code for: rubbing their hands together in glee whilst excitedly exclaiming “It’s working, it’s working!”.

  4. Was watching Martin North’s live stream last night and he mentioned the Responsible Lending roll-back has been “deferred” until later this year. Let’s hope this is the first sign of defeat after significant public criticism. Keep the pressure on the b a s t a r d s!

    • The RC showed conclusively that it was ignored anyway, and nothing has been changed since in this regard so it really won;t make much difference either way.

    • Goldstandard1MEMBER

      It’s like they are wanting to keep it in the back pocket for when it starts to unwind. The good news is that when it does unwind, ppl won’t want credit so the lending laws won’t matter. It will be more about another RC into how we got into this situation in the first place.

  5. Ritualised Forms

    Another sighter on that APRA Data

    The shredding of responsible lending has had the desired effect…..

  6. reusachtigeMEMBER

    There is no need for lending restrictions. Banks should be able to get their own feel for the character of the borrower and if they like a borrower they should be able to lend them as much as they need! It shouldn’t be a government distortion like it is now.

    • Ritualised Forms

      Great idea!

      Every human should have ‘Birth Credit Rights’ sufficient to enable whatever credit is needed for whatever housing they like! And the government could simply back the banks in making this happen. The government puts its balance sheet behind the banks borrowings – reducing their borrowing costs on funds they create through the issuance of debt – and the efficient private sector ensures that all citizens have the money they need when they need it!

      Lets call them Universal Credit Rights. They would operate along similar lines to MMT, they would only be accessible for specific social items – houses, cars, food items, energy, some basic clothing [like underpants and socks maybe] and internet access and a basic menu of TV and games, probably some basic discombobulants and booze, and probably even membership of a fitness facility.

      The banks could make sure we had them, and we could use their cards of course. So that would keep them buoyant and balance sheets well puffed out. All major retailers would take them so that would be them going along just fine. People would be happy in homes they liked with facilities they liked and the intoxicants they liked.

      Its win win all round I tell you…


      I agree! And also banks should be able to kick loosers to the curb who can’t pay their mortgages without penalty! Then they can sell the house to somebody else with a massive mortgage! So then they have two (or more!) loans being paid to them. It’s a never ending profit making machine for the true winners of our society!