Balneus

Australian Lefty on Politics, Governance, Science and Info Management

What battlers should ask

Posted by Dave Bath on 2007-09-19


Given that more and more of the commentariat, and even the tabloid readers are recognizing that the economic bears have not been paranoid, and that the only way of really addressing housing affordability in an environment with constrained liquidity is to lower housing prices or increase income, the "Howard’s Battlers" should keep the following question in mind for the coming election:

When the s**t hits the fan, which party is more likely to leave my family high-and-dry so we end up suffering depression and ability to work (earn income) drops, versus which party is likely to be more supportive during periods of widespread financial stress on households?

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2 Responses to “What battlers should ask”

  1. Raf said

    Yes but which party is likely to change the faulty system? When we look at the actions of the BOE and the Fed we see that preservation of the status quo is all that counts. The day of reckoning is still to come….the pain cannot be avoided.

  2. Dave Bath said

    Raf, you’re right. Various economists (and even the BOE) argued that interest rates should not be lowered, and the economists said that the US Fed would only lower interest rates further if it wanted to keep the equiteers happy rather than the economy. Yeah. Well. Surprise, surprise.

    And yet the bulls think the synergistic crises of housing bubbles and poor pricing of risk are over ….

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