Wednesday, September 30, 2009

This is serious stuff

This is what happens when you provide a direct stimulus and also what happens when you avoid providing a direct stimulus.

The Australian housing market is now on the precipice and is so finely balanced that it has managed to corner all those who have tried to keep it from imploding over the past couple of years. Now those well meaning souls are between a solid rock and a very hard place.

Whatever the government does in the near term will end up being bad for someone - or some special interest group who will then demand to be compensated - because they made dumb decisions.

Good luck to you all and may the best lobbyist win. For the rest of us - may I recommend Telstra shares ;-)

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