It’s a fantasy that an undersupply of housing is the cause of tall house prices in Sydney and Melbourne. They reflect a chronic addiction to household debt Australia faces many economic challenges in the near future,whether it is anaemic growth, falling national income, and stagnant wages,plunging mining sector capital expenditure, an uptick in unemployment and underemployment, or the collapsing terms of trade. Arguably,the most pressing need is to deal with Australia’s out of control banking and financial system, having blown a housing bubble of epic proportions. Related: People are buying Ferraris, or Joe Hockey – that doesn't compose them affordable Continue reading...
Source: theguardian.com