Welcome Guest [Log In] [Register]


Reply
Glenn Stevens urges government to stop property bust
Topic Started: 4 Sep 2014, 01:54 PM (1,189 Views)
Ex BP Golly
Member Avatar



SURREAL l ! http://m.afr.com/p/national/rba_glenn_stevens_urges_action_to_zQDQkxTeiTKlXdg9qXSN8H
"Its stating the obvious that at present, while we may desire to see a faster reduction in the rate of unemployment, further inflating an already elevated level of housing prices seems an unwise route to try to achieve that.” Mr Stevens indicated to a function organised by the Committee for the Economic Development of Australia in Adelaide on Wednesday that it was the task of state and federal gov­ernments to help ensure price gains didn’t become unsustainable.

He said monetary policy could not add to the amount of land available for housing or improve the ability of the construction sector to respond to demand for extra housing.

“Other policies have to do that – and it’s important that they do, if we are to see easy credit result in more dwellings as opposed to just higher prices for the existing dwellings,” he said. “Monetary policy can’t create the additional in­frastructure that most people agree we need. Funding conditions are not, in fact, an impediment to infrastructure.

“The real issues are governance, ­risk-sharing and pricing – areas where other policies have to be right.”
.....
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
Profile "REPLY WITH QUOTE" Go to top
 
Ned Flanders
Default APF Avatar


Ex BP Golly
4 Sep 2014, 01:54 PM
SURREAL l ! http://m.afr.com/p/national/rba_glenn_stevens_urges_action_to_zQDQkxTeiTKlXdg9qXSN8H
"Its stating the obvious that at present, while we may desire to see a faster reduction in the rate of unemployment, further inflating an already elevated level of housing prices seems an unwise route to try to achieve that.” Mr Stevens indicated to a function organised by the Committee for the Economic Development of Australia in Adelaide on Wednesday that it was the task of state and federal gov­ernments to help ensure price gains didn’t become unsustainable.

He said monetary policy could not add to the amount of land available for housing or improve the ability of the construction sector to respond to demand for extra housing.

“Other policies have to do that – and it’s important that they do, if we are to see easy credit result in more dwellings as opposed to just higher prices for the existing dwellings,” he said. “Monetary policy can’t create the additional in­frastructure that most people agree we need. Funding conditions are not, in fact, an impediment to infrastructure.

“The real issues are governance, ­risk-sharing and pricing – areas where other policies have to be right.”
.....
Every central bank failure is somebody else's fault.

Q: How can you tell when a central banker is lying?
A: His lips are moving.
------------------------------
" ... which is that all-too-familiar dynamic in Irish life where people tell lies, cover them up and create all sorts of collateral damage, sometimes spread out over decades, and never take responsibility."
- Alan Glynn
Profile "REPLY WITH QUOTE" Go to top
 
Admin
Member Avatar
Administrator

Quote:
 
Standby for RBA jawboning on overheated Sydney and Melbourne auction markets

Jonathan Chancellor | 3 September 2014

The rampant winter Sydney and Melbourne residential auction markets will trigger the RBA Governor to return to jawboning.

The bubble popper-in-chief Glenn Stevens will wisely be taking whatever opportunity to douse these red hot property markets with a strengthening of the language around the market's intensity.

Especially surrounding the Sydney growth, which while much of it catch-up, is looking overly exuberant in today's RBA chart pack.

Without success the RBA will find itself in the circumstance where they will need to raise rates when most the the country's business and property markets aren't resilient enough to cope.

As Westpac's Andrew Hanlan put it the record low interest rates are a key tailwind for growth, especially housing, but the economy remains constrained by a number of headwinds.

Of course jawboning hasn't worked with the RBA's efforts to get a lower dollar so what chance the bank can assist in having house prices avoid reaching bubble territory?

First home buyers aren't big participators in the current market, so the RBA's aim will be family home upgraders with record low mortgage funding and the ever emerging mature SMSF property investors.

Repeated references to the history of house prices that fall as well as rise will be the RBA's message.

I am old enough to remember the last recession - with property crash - in the early 1990s, but subsequent generations aren't.

There are still plenty of buyers who got caught in the 2003/2004 hype - and some of these buyers that are still underwater.

Since then there have been a series of dips, the biggest after the global financial crisis.

And then another small dip in 2010.

Only last weekend it was evident that the Australian cricket captain Michael Clarke had seemingly been over-exuberant in his 2006 Lilli Pilli purchase, as it failed to sell on its second subsequent auction campaign.

Yes mostly in regional Queensland and Tasmania, but even in the seemingly recovering strong markets, the 2014 March quarter RP Data Pain Gain reports plenty of loss taking. They put loss taking at a 7% across the country.

But the prospect of over paying can too often be overlooked in the herd-like emotional auction mentality that is standard Saturday fare for home buyers. And where else do diversifying investors go for the potential gains and income that property promises with extraordinary tax benefits?

There's no reckless rush to credit showing up in the RBA house finances chart and interest paid is demonstrably dipping in these unusual times.

Do the punters listen anymore?

Read more: http://www.propertyobserver.com.au/financing/interest-rates/35263-standby-for-rba-jawboning-on-overheated-sydney-and-melbourne-auction-markets.html
Follow OzPropertyForum on Twitter | Like APF on Facebook | Circle APF on Google+
Profile "REPLY WITH QUOTE" Go to top
 
vdmruss
Member Avatar


If you search for "jawboning" in Google Images, you find pictures of Ben, Yellen, Draghi and our RBA superstar. I don't think what they are doing is working anywhere.

Perhaps they should just jack up rates to 10% to blow everything we (don't) have and start again.
Edited by vdmruss, 5 Sep 2014, 12:02 AM.
Let me assure you that this isn't one of those shady pyramid schemes that you've been hearing about. No sir, our model is the Trapezoid which guarantees each investor an 800% return within hours.
Those who can, do. Those who can't, teach.
"It's an itchy blanket, it's designed to remind you how lucky you are"
Profile "REPLY WITH QUOTE" Go to top
 
miw
Member Avatar


Ned Flanders
4 Sep 2014, 08:51 PM
Every central bank failure is somebody else's fault.

Q: How can you tell when a central banker is lying?
A: His lips are moving.
Glenn Stevens is in a bind. The RBA is required to set monetary policy policy (essentially: the interest rate) according to legislated guidelines. But he has no control whatsoever over fiscal policy or what the banks actually do - Cabinet, Parliament and APRA and the banks do that. But if a bubble does develop and subsequently pop, you can be sure he will get the blame.
The truth will set you free. But first, it will piss you off.
--Gloria Steinem
AREPS™
Profile "REPLY WITH QUOTE" Go to top
 
Guest
Unregistered

Ned Flanders
4 Sep 2014, 08:51 PM
Every central bank failure is somebody else's fault.

Q: How can you tell when a central banker is lying?
A: His lips are moving.


http://www.youtube.com/watch?v=2NJnL10vZ1Y&feature=youtube_gdata_player
"REPLY WITH QUOTE" Go to top
 
Ned Flanders
Default APF Avatar


miw
5 Sep 2014, 12:58 AM
Glenn Stevens is in a bind. The RBA is required to set monetary policy policy (essentially: the interest rate) according to legislated guidelines. But he has no control whatsoever over fiscal policy or what the banks actually do - Cabinet, Parliament and APRA and the banks do that. But if a bubble does develop and subsequently pop, you can be sure he will get the blame.
Glenn Stevens is in a bind of his own making. All of this could have been avoided if Stevens had held the course on interest rates. That would have forced a structural adjustment away from mining 5 years ago instead of now when the powder is almost spent and raising rates would cause financial instability.

When Stevens raised rates 3 weeks before the 2007 election, I thought we might have a Guv with some political backbone, but the last 5 years have convinced me otherwise. Stevens is an appeaser, and this is what you get for appeasement. No point whining about it now after the horse has already bolted.

------------------------------
" ... which is that all-too-familiar dynamic in Irish life where people tell lies, cover them up and create all sorts of collateral damage, sometimes spread out over decades, and never take responsibility."
- Alan Glynn
Profile "REPLY WITH QUOTE" Go to top
 
1 user reading this topic (1 Guest and 0 Anonymous)
« Previous Topic · Australian Property Forum · Next Topic »
Reply



Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.

Forum Rules: The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.

Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.

Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.

This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.

For more information go to Limitations on Exclusive Rights: Fair Use

Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ

Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy