Treasury secretary John Fraser told a senate hearing today he has no doubt there is a property bubble in Sydney. “When you look at the housing price bubble evidence, it’s unequivocally the case in Sydney. Unequivocally,” he told the hearing. He warns bubbles have also formed in many parts of …
Sydney and Melbourne residential property markets could already be in a bubble according to the chief of Australia’s Investment and Securities regulator. Talking to the Australian Financial Review this week, ASIC Chairman Greg Medcraft said “History shows that people don’t know when they are in a bubble until it’s over” …
The International Monetary Fund (IMF) will send an economic team to Australia next month to check up on Australia’s housing bubble and the increasing risk it poses to the economy, according to a report in the Australian Financial Review today. James Daniel who will lead the team next month told …
Concerns are mounting that Australia’s big banks are disregarding risk and may not be capitalised enough to withstand a conceivable property correction. Today, the Australian Financial Review reported Sydney home prices are growing five-times faster than wages. Such rapid increases in property prices over one’s ability to service the mortgage …
The last instalment of the ABC’s property bubble special aired tonight, focused on the “biggest headache in decades” for regulators trying to breath life into the economy, while the housing bubble accelerates on cheap credit. You can watch tonight’s segment here – Getting hammered by overheated housing In recent months, …
The ABC has tonight delivered its second instalment on Australia’s housing bubble, the brewing banking crisis and tomorrow night – what the regulators are doing to try to limit the catastrophic damage. You can watch tonight’s segment here – Is 1.6 trillion dollars in housing loans too hot too handle? …
According to the ABC, Kevin Nixon, Former Managing Director of Regulatory Affairs at the Institute of International Finance (IIF) says foreigners are puzzled about the entire Australian housing market. Now a partner (risk) with Deloitte in Sydney, Nixon is a respected voice globally on regulation and governance of the financial …
Hot on the release of the Murray report, the Australian banking regulator (APRA) and the Australian investment and security regulator (ASIC) has today exposed teeth as they start growling and barking at our reckless banks. Both regulators have launched an attack on prevalent risky residential mortgage lending practices, targeting in …
Contrary to popular belief, Australian Banks are not the safest in the world and should hold more capital to protect against future shocks. David Murray, chair of the Financial System Inquiry who released their final report yesterday, said Australian banks should be in the top 25 per cent of global …
Australians are compelled to believe banks that produce super profits are some of the safest banks in the world. But is super profits really a sign of safety or an indication of dangerously high leverage and risk taking? As we wait for the release of the David Murray Financial System …
No doubt regulators, today, wish they were not sleeping at the wheel as the challenge on what to do with the world’s second largest residential property bubble start to mount. The Council of Financial Regulators – comprising of the Reserve Bank of Australia (Chair), the Australian Prudential Regulation Authority, the …
The Financial System Inquiry’s Interim Report released yesterday confirms what we already know – Australia’s tax system is broken as it encourages risky leveraged and speculative investment that will one day come back to bite Australia hard and “compromise the speed of a subsequent recovery in economic activity”. The report …
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