We had quite interesting speculation yesterday.
John Fraser the new head of Treasury stated he thought there was a housing bubble in Sydney and possibly in Melbourne, Malcolm Edey the Assistant governor of the RBA whilst not stating there was a bubble when pretty damn close to it. Alan Moran of Catallaxy thinks so too!
Certainly when people borrow large amounts of money in anticipation of the capital price always rising it is a fair bet there is a bubble.
When asked about policies to combat this the Government squibbed it. ( links to Fraser's and Edey's testimony is here).
This is unfortunate. Treasury must have advised the government of this and thus given the Government a range of options to examine for policy.
We need to know what at least some of them are and which ones the Government is contemplating.
The Opposition actually asked a good question. Tis a pity the Government did not even have an answer even if a bad one,