24-02-2009, 09:22 AM
Magda Hassan Wrote:Quote:Over here in the land of floods and fires we have an obnoxious Sydney radio broadcaster called Alan Jones who is trying to pin the blame on the public and their "reckless credit binge". He seems to be in favor of bank bailouts but rails against handouts to the (<$100K p.a.) public.
It wasn't even a hand out to the public. It was a hand out to the retail sector. The idea was that with all the loot handed out just before Christmas it would all end up in the shops. Looking at the figure Rudd read out in parliament to day that's just what happened. All the cheap mortages and the first home owners grant and rent assasstance for social security beneficiaries all that is for the real estate and property development and construction industry. If the government were interested in housing people they would have public housing.
Yes indeed. It is designed to stimulate the retail sector. And I agree with your other comments--the FHOG is designed to help the property sector as is the massive immigration level. They are hoping high immigration levels will prop up real estate values on the demand side. Sadly, the only thing being propped up are the ridiculously high rental rates in Sydney and the other urban centres.
But that's OK for them--many of the politicians have investment properties and are happy to see high rental rates.
(end of brief thread hijack)