Thursday, March 02, 2006

"The Bigger the Boom, the Bigger the Bust"

Australian officials are starting to "get it". Housing booms really don't do much good for most people (other than realtor commissions, investors, government coffers, builder profits, or people who "buy down").

Some choice quotes (stolen from Ben's blog):
The government would be happy to never see another housing boom, Treasurer Peter Costello says.

"I think house prices got too high and as a consequence of that, you would expect a correction and we're getting a correction"

"I want a see a correction, once you have had that correction, what you would like to see is stable prices, maybe small increments, but I don't want to go back to the situation where house prices were booming in the way they were a couple of years ago.

"That's not good for an economy. Remember this point, the bigger the boom, the bigger the bust.

"The reason we're against booms, is we're against busts."

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