Now I've heard it all.
Now I've heard it all.
Essentially, Magoo is correct. Although the banks abrogated their responsibility to ensure sensible borrowing by their customers, no bank forced individuals to bid up the price of housing to the currently absurd proportions.
We Plebeians did that all by ourselves.
The Banks only ever benefit society.
We need banks, we don't need their reckless fractional reserve system that creates debt that helps to inflate prices more than anyone who buys a house could on their own.
Fractional reserve is a good system. Greedy little Australians are not a good system.
'Australia faces a run on its currency, a deeper collapse in housing prices and a bank funding crisis to rival Europe's as it tries to come to grips with life after the mining boom, according to a report from a boutique US advisory firm.
'Entitled Australia: The Unlucky Country, the report from Variant Perception argues that Australia faces a classic case of Dutch Disease, the erosion of capability that flows from a resources boom and an overvalued exchange rate.'
If the banks are so wonderful, why didn't they put a cap on how much people could borrow for a house? Oh thats right they were too busy thinking about profits, oh sorry i mean the good of society.
Fiat money and FRB is not good, and you will see that as that as everything unfolds over the next couple of years.
Look Magoo I'm with you, I think that prices are way too high, it's bubbled blah blah blah. But you can't blame one entity. There is a multitude of reasons that prices are as high as they are. It doesn't stop with houses either.
There's the banks, mortgage brokers, property investors, the current banking system, the recent sub-prime lending uncovered here in AUS(still the banks), and I'm sure many others that I can't think of right now, all tied up in this. You're barking up the wrong tree, and clearly have a chip on your shoulder over investors.
If it's any consolation our prices will fall substantially soon, and you will be able to put a roof over your head at a much more reasonable price.
Start preparing for your date with destiny Oztraaalia ...
What why should they put a cap on it ?
I blame the greedy property speculators, be they investors or home owners.
The reason prices are high is because little Australians in general are greedy, selfish and manipulative people who do not care about their fellow man.
I blame the greedy property speculators, be they investors or home owners.
The reason prices are high is because little Australians in general are greedy, selfish and manipulative people who do not care about their fellow man.
That may be true, but those "greedy, selfish and manipulative little Australians" are NOT responsible for increasing the money supply which causes inflation in house prices. The private banks are soley responsible for increasing the money supply so you can stop "patting them on the back".
We need banks, we don't need their reckless fractional reserve system that creates debt that helps to inflate prices more than anyone who buys a house could on their own.
That may be true, but those "greedy, selfish and manipulative little Australians" are NOT responsible for increasing the money supply which causes inflation in house prices. The private banks are soley responsible for increasing the money supply so you can stop "patting them on the back".
...During the Howard years houses were still affordable so it was the ALP that screwed it up and did nothing to correct it so I don't think it has anything to do with evil capitalist it is just the Australian way of thinking.
During the Howard years houses were still affordable so it was the ALP that screwed it up and did nothing to correct it so I don't think it has anything to do with evil capitalist it is just the Australian way of thinking.
The fractional reserve system has existed through times of price stability in relation to income.
It can be successfully argued that FR is inherently inflationary, but the key figure is house prices in relation to incomes.
Therefore I don't believe FR itself is the problem, the problem is due the extraneous factors.
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