Silly bears like Ted underestimated the power of the RBA and our ability to stimulate the residential property market. When I recognised in 2012 that the mining investment boom was nearing its peak, the RBA decided that it was time to pass the baton over to housing. I embarked on a carefully calibrated string of rate cuts to ensure a smooth transition, from mining to housing, and I'd say I've been reasonably successful to date. The 30% increase in Sydney house prices since 2011 is testament to the RBA's economic strategy.
No. It was merely an underdestimation of the level of stupidity to which the government would actually go to. Encouraging more foreign investment, and then encouraging people to risk their lifelong superannuation funds when they warning signs are all around us. Not only to use their super funds, but to leverage them in a large way, and while rates are at record lows.
I have covered a response to all this five minutes ago in another thread responding to Glen. So he can see if he has any answers for it there.
So instead of type it all out again for you two, you can read it below.
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