In this scene Michelle Pfeiffer reminds me of those still hoping that APRA (Valmont) will do “the right” thing with regard to how banks respond to the excessive demand for credit from speculators and assorted punters due to the “bait rate” program administered by the RBA.
As Valmont explains – it is beyond his control.
The RBA “bait rate” program is intended to drive credit creation and private debt and for one very good reason. Household debt is not public sector debt and the RBA knows that the politicians fear public debt more than a vampire fears the stake.
Why on earth would APRA seek to stand in the way of the “plan”? After all it is approved by both major parties. Drive the economy with expanding household debt induced by “bait rates” and massive private (albeit taxpayer guaranteed) borrowing off-shore.
It is called being a “fiscal conservative”.
But don’t worry as we are getting closer and closer to the point where the private sector will have had enough and then the public balance sheet will be called into help. Mr Hockey has already started making those sounds.
Then, like a chicken wire bar in the Blues Brothers, we will have both kinds of debt in abundance – private and public.