This comment was made this week at http://www.macrobusiness.com.au (link may be locked)
“….However, they may still succeed with their own brand of behind-the-scenes prudential tightening. Let’s hope so….”
Why would APRA and the RBA do anything of the sort.
Why would they trim the sails of the very people their policies are aimed at.
The only reason for cutting rates is to encourage new debt.
The only people who are interested in new debt are
1. Speculators missing the fear gene
2. Chump FHBs who are buying but staying at home with mum and dad.
Business is not borrowing as they know an economy running on speculator fumes is no basis for real investment.
Normal people are not borrowing – most are like tmarsh – paying down their loans as fast as they can.
Savers are not spending as the RBA keeps reducing their incomes.
The RBA and APRA are a farce but only because our politicians starting with Howard decided to wash their hands of responsibility for the economy and encourage the privatisation of public finances.
It was a predictable performance by the RBA today as they are simply playing their part in the economic model set down by the last three Australian governments (Howard, Rudd, Abbott) but a very sad one for Australia.
Yes – A victory for MB
But we are talking about spotting the arrival advanced economic dementia downunder.