Well, I reckon that there is trouble brewing for us investors as we are now about to be targeted politically.
See below an article I just extracted from Yahoo!
Housing imbalance may stop rate cut: ALP
The imbalance in the housing market could prevent the Reserve Bank from cutting interest rates, federal Labor said.
Opposition treasury spokesman Bob McMullan said if not for the problems in the housing sector, the Reserve Bank would have no trouble cutting rates.
The bank's board was meeting Tuesday, the first since the US Federal Reserve cut rates there last week.
Mr McMullan said the Reserve had been raising concerns about the strength of the housing sector, and particularly investment housing, for some time.
He said there was now only a 50-50 chance of the Reserve cutting rates.
It would be a pity it could not cut rates because of the housing imbalance, Mr McMullan said.
"The objective economic circumstances do suggest that for ever reason but one you'd expect the Reserve Bank to be delivering an interest rate cut, but we have a serious imbalance in the economy where there's been a big blowout in housing prices and property prices and particularly in investment property," he told reporters.
"The treasurer (Peter Costello) has allowed this imbalance to grow and get out of hand and it could cost taxpayers an interest rate cut (Wednesday)."
Mr McMullan said he had concerns that unemployment could rise over the next 12 months.
Australia's relatively higher interest rates were also pushing up the dollar, making life extremely difficult for exporters.
"If we were the only developed country that didn't get an interest rate cut, that would be a great pity," Mr McMullan said.
"I understand why the Reserve Bank is so worried about the blowout in investment housing.
"The property market could be over stimulated even further by an interest rate cut."
(end quote)
So, standby for banks to tighten up loaning practices and for all the general whingeing that I feel sure will ensue.
Just thought you'd like to see this.
See below an article I just extracted from Yahoo!
Housing imbalance may stop rate cut: ALP
The imbalance in the housing market could prevent the Reserve Bank from cutting interest rates, federal Labor said.
Opposition treasury spokesman Bob McMullan said if not for the problems in the housing sector, the Reserve Bank would have no trouble cutting rates.
The bank's board was meeting Tuesday, the first since the US Federal Reserve cut rates there last week.
Mr McMullan said the Reserve had been raising concerns about the strength of the housing sector, and particularly investment housing, for some time.
He said there was now only a 50-50 chance of the Reserve cutting rates.
It would be a pity it could not cut rates because of the housing imbalance, Mr McMullan said.
"The objective economic circumstances do suggest that for ever reason but one you'd expect the Reserve Bank to be delivering an interest rate cut, but we have a serious imbalance in the economy where there's been a big blowout in housing prices and property prices and particularly in investment property," he told reporters.
"The treasurer (Peter Costello) has allowed this imbalance to grow and get out of hand and it could cost taxpayers an interest rate cut (Wednesday)."
Mr McMullan said he had concerns that unemployment could rise over the next 12 months.
Australia's relatively higher interest rates were also pushing up the dollar, making life extremely difficult for exporters.
"If we were the only developed country that didn't get an interest rate cut, that would be a great pity," Mr McMullan said.
"I understand why the Reserve Bank is so worried about the blowout in investment housing.
"The property market could be over stimulated even further by an interest rate cut."
(end quote)
So, standby for banks to tighten up loaning practices and for all the general whingeing that I feel sure will ensue.
Just thought you'd like to see this.