I’m alright Jack (June 2021): MP(LOL) to curb house prices (without affecting the prices)

so we’ve got another Deflation Imaginarium dispatch to comment on. I like to imagine that it has been penned by a bloke with an overly large pen and no pants

(refer illustration of Hero Jack from https://www.deviantart.com/dbcreativeart/art/Hero-Jack-without-Pants-741274907).

He’s alright, Jack. He is Alright Jack.

Alright Jack muses on Jack’s favourite topic of macro prudential:

(https://www.macrobusiness.com.au/2021/06/australias-next-move-for-interest-rates-is-down/)

Macro prudential is great, because it is not macro, it is not prudential, it is non-existent.

Being mythical, like that, its effect can be whatever Jack wants to imagine. It doesn’t have to be the same all the time. It can change moment to moment. It can even be two opposite things at the same time. What a nice chimera.

Today, Alright Jack reckons it will curb house prices (above)… while not impacting house prices (below):

(https://www.macrobusiness.com.au/2021/06/australias-next-move-for-interest-rates-is-down/#comment-4131752)

sweet!

It is exceedingly likely that this stuff is being written by a bloke with no pants. I have been presented with no evidence to the contrary.

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bjw678

I’m beginning to suspect a giant crack pipe rather than pen given the desperate sounding non consistent comments appearing in the comments section.
Either that or they can’t afford the maintenance costs on their article generating AI any more…

stagmal

so WTF is macro prudential

Ramjet

If they were to implement it, it would be a way of doing something without doing anything.
They keep on talking about NZ doing it, but in reality it just invoked the law of unintended consequences and in the end not achieving much.

bjw678

For a more helpful answer(guess).
Regulation limiting loans based on ???????
Possibly:
LVR, income/value or whatever else you dream up including total loans issued, % change in loans and whatever else.

MPguy

nah, nah, it’s not that, you don’t understand!

bjw678

But I couldn’t be any more vague if I tried!!!

Gouda

A figment of DLS’ imagination.

Ramjet

They are still banging on about MPLOL. Nothing changes at MB: lower the rates and MPLOL will be implemented. A few commenters kept posting over the last six months that TFF will become permanent and yet they kept writing that rates will go up because of the Biden boom. Why anyone would subscribe is beyond me.

Coming

I think he is suggesting that interest rates will be cut, but prices will stay steady due to a weak macro prudential (that can be unwound later )

bjw678

That is what he has been suggesting for a long time, but I haven’t seen it happen like that yet.

Coming

Don’t think you can just jump on my bandwagon after you poopooed it yesterday !

T

You know I have more and more respect for Louis Christopher.

Someone pointed out his method of predicting house prices was quite simple and used some formula.

If this is the case, then he is technically more honest an information broker than MB. Which is pretty ironic if true lol.

Sam

That’s the problem with Oz, any mention of reduced immigration makes you racist. The media is dumb and business leaders/lobby are hell bent on ensuring higher immigration levels once covid immunity is achieved in Australia. What a shame. We’re selling our values, traditions and history and instead replacing it with corporate structures designed just to maximise profits.

I hope the debt bubble collapses, Oz needs productive businesses not housing speculation!

thanks, Sam from financialpunch.com

The90kwbeast

“Readying new tools” LOL

No they’re not. How many times can they wheel out this argument, it has been shown time and again the political appetite to do anything more than playing around the edges with these policies is near zero.

bjw678

take the form of someone publicly being seen to be doing something while privately doing everything to try to ensure that nothing really happens.

Isn’t that an apt description for politicians in general.
Especially for anything for the plebs or that would be bad for influential
and powerful people/entities.

Last edited 1 month ago by bjw678
The90kwbeast

Yes. Politicians are so risk averse now it’s not funny. All about collecting the paycheque, put on a pantomime here and there to be seen to be doing something, then nothing changes. Oh, and waiting to collect that post parliamentarian pension.

The90kwbeast

About the only upside for the plebs is lower mortgage repayments – for those that already own – and higher house prices. For future plebs, they are thrown under the bus with the double whammy of being unable to save as much due to lower rates, and facing ever higher house prices as a result of interest rate decreases.

All other PAYG plebs i.e. renters essentially see zero benefit.

So yes, the primary beneficiaries are once again, big capital holders, followed by middle sized capital holders, followed by small business and a similar level property specufestors, followed by PAYG homeowners.

Then renters – neutral to negative impact, followed by children, super negative impact (unless you have already cashed up parents).

Depressing stuff really.