The RBA assures us there is nothing to fear even as the ‘bait rate’ debt life support measures are turned up to 11.

To read the original version of this comment in the original context at Macrobusiness.com.au click this link. (link may be locked – but there is a free trial available)

Any wonder that the RBA is not very interested in MP or any other stronger regulatory measures (i.e. limits on unproductive capitals inflows into residential housing).

According to the RBA record levels of household debt and the record low ‘bait rates’ used to drive it present few risks to financial system stability.

Standard load of cobblers.

If the economy was so vibrant and thriving with this debt load the RBA would not be continuing dropping the price of debt to keep it alive.

When people talk about improving loan servicing ‘affordability’ what they really mean is debt life support measures have been ‘enhanced’ by the RBA.

The RBA argument seems to be that because the residential asset price ponzi / household debt scheme benefits the very wealthy, and they are best placed to cope with any temporary ‘set backs’ in the ponzi scheme, we should just clap and applaud the continuation of one of the greater policy failures of the last 50 years.

Time for a fundamental review of how our private banking system hijacked the management of the economy and turned it into a wealth creation system for a minority.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s