Where Messrs. Rudd and Swan, blew a golden opportunity!

Where Messrs. Rudd and Swan, blew a golden opportunity!

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I’m not talking about the de-throning of the Minister for Pink Batts (Peter Garrett) debacle either! Rather, just exactly what went wrong with their misguided Nation Building spend fest that has now resonated into a property boom (in some areas). History shows such market movements can be contagious, as was subprime, which brought about the global financial crisis (GFC). Fort Fumble (Federal Government) reacted by directing its spending obsession into schools (with plaques) when in fact, it should have taken aim at our housing, transport and health debacles. What Messrs. Rudd and Swan missed, was that all Australians live in houses, use transport, and do require hospital assistance.  By comparison, a much smaller percentage attends school – another no brainer!

The 7.30 Report ran an interesting piece this week Australian houses amongst least affordable in the world. Its working paper was the latest release of the 6th Annual Demographia International Housing Affordability Survey: 2010 which is always an interesting read. As Kerry O’Brien stated “There is some concern that this latest property boom again raises the spectre of an unhealthy bubble; but there’s a range of contradictory elements at work that potentially pose a profound challenge for Australian authorities.” In 2009, Australia constructed around 130,000 homes nationally when we needed to build 190,000 to meet population growth. In 2010 it is projected that Australia will construct just 152,000 homes – so Fort Fumble has builders working on schools? Home prices will continue to rise as will rents too! Supply is not even close to meeting demand.

NudeOpera

It was Nude Opera this week when renowned photographer Spencer Tunick enticed approximately 5,200 Australians to bare all on the forecourt. A case of love the one you’re with or maybe a case of I spy with my little eye someone beginning with…? The shoot has been called Mardi Gras: The Base.

Tim Mooney Photography

It was another tough week for The Emperor who fronted The 7.30 Report Kevin the confessor and said  “We are taking a whacking in the polls now. I’m sure we’ll take an even bigger whacking in the period ahead, and the bottom line is I think we deserve it, both – not just in terms of recent events, but more broadly.” True, when The Daily Telegraph ran “Prime Minister Kevin Rudd losing support in western Sydney” the Mad Monk seized the moment “Rudd rattled, says Abbott” then The Emperor (later to morph as Dr. Emperor) faced an attack from within “Rudd mea culpas have shot party in foot, say ministers”. Never one to miss an opportunity, I grabbed this comment on The 7.30 ReportKevin the confessor.

The Emperor “One of the problems that we have had as a government, for which I accept responsibility, is we didn’t anticipate how hard it was going to be delivering things.” PM, this is otherwise known as business acumen. The Mad Monk responded “Kevin Rudd thinks he’s the economic genius who saved Australia from a recession but the public might conclude he’s just won the gold medal for waste.”

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With his new policies on the run, now Dr. Emperor is taking a scalpel to our hospitals. Amazing what a difference a week makes. This political operation long overdue and Kevin Rudd to cut away the dead tissue of our ailing health care system Dr. Emperor moved into a totally different theatre, that being the operating theatre – Rudd announces $30.9 funding takeover of the public hospitals where just a week from the Pink batt debacle  Rudd’s hospital reform more radical than 1984 Medicare revamp. So how is The Emperor going to doctor our hospitals? Rudd takes $50 bn from states for hospitals. Not bad, given they are already in deficit with a growing interest payment of nearly $20 billion per annum. We found two great articles that critiqued Dr. Emperor’s health announcement Graphs galore but answers to big hospital reform questions are scarce by Lenore Taylor of the Sydney Morning Herald and Steve Murphy from Business Spectator Balance of Power. Australian states and territories are currently drowning in debt to the tune of approximately $133 billion which is about the equivalent of what Fort Fumble now owes (both increasing not decreasing)

Fort Crumble (NSW government) would be ‘champing at the bit’ given, NSW takes the biggest slice in GST handouts. This no doubt  assisted their  mortgagee – in – possession sale of “NSW Lotteries sold in $1 billion deal”where a confused Treasurer Eric Roozendaal said, “That means total proceeds of the sale of NSW Lotteries for NSW taxpayers of more than $1 billion – money that will go straight into funding frontline services for the families of NSW like teachers, police and nurses, and strengthening the state’s balance sheet.” He later said the sale proceeds would go directly into paying down the state’s debt – a margin call?

Pulling plenty of strings, our “Puppet Premier” then embarked on an estimated $750,000 television campaign in an attempt to convince constituents just how Australian she really is. No mention of NSW Labor just her website Kristina Keneally – although I did notice that our Puppet Premier forgot that when any Premier runs an advertorial they always have our Australian flag in the background – another massive blunder! It keeps getting worse “NSW fails to secure funding for infrastructure” in a staggering admission (not really) Fort Crumble announced that it was awaiting an invitation. Infrastructure Australia then advised that submissions were not by invitation only – Fort Crumble consistently hopeless. Yes Minister!
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So let’s look at what has happened in our Mosman market compared to same time in 2009. Bearing mind that in 2010 some sales are yet to be recorded at Domain Property Data.

Houses – I January 2009 to 1 March 2009 compared to 1 January 2010 to 1 March 2010

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  • Total 2009 – 30. Total 2010 – 35
  • Sales 2009 – 26. Sales 2010 – 31
  • Total value 2009 – $84,845,000. Total value 2010 – $51,597,000
  • Median price 2009 – $2,136,500. Median price 2010 – $2,150,000
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    As you can see, it is line ball where we will be monitoring results throughout 2010 and calling it as it is. The Reserve Bank of Australia (RBA) moved the cash rate upwards this week by 0.25 per cent to 4.00 per cent and here is (what the economists said) about this week’s increase. Certainly when the Australian Bureau of Statistics revealed that Australians spent $20.100 billion on a shopping spree in January this did not help the RBA’s decision.

    As quick as a flash, the banks jumped on the increase where the standard variable rates are;

  • CBA – 6.86 per cent
  • ANZ – 6.91 per cent
  • Westpac – 7.01 per cent
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    Of greater concern is The Emperor’s move into hospitals and his threat to call a referendum should the broke states and territories not agree. Since Federation, there have been 44 referendums and just 8 have been successful. Success of late, has not been one of The Emperors strong points. Then again it is an election year so anything goes. Policy on the run can have dire consequences. Just look at Fort Crumble selling off state assets.

    Our Puppet Premier in white – another clue! That flag was raised years ago so (the Fort has some continuity), what assets are next? What do you think about Dr. Rudd’s hospital announcement? Obviously one week’s work and better known as “policy on the run” to stop his poll haemorrhaging voter dissent.

    Cheers ^__^

    This week’s sales Mosman real estate, Cremorne real estate, Cremorne Point real estate, Balmoral real estate, Neutral Bay real estate, Cammeray real estate Click Here

    This week’s RWM open for inspections Click Here

    8 Responses to “Where Messrs. Rudd and Swan, blew a golden opportunity!”

    • Ann says:

      Your right, it is politics on the run and decisions made on the back of media and electorate fallout. The naming of Garrett as a first class minister and then demoting him, when he should have been sacked last year. The burying of the Henry Review, that they have had for 3 months – it must be a vote killer.

      The Health changes, without obviously any detailed discussions with the States. Even the two biggst States have raised concerns with their own party’s PM. Almost unheard of in the media.

      THE REFERENDUM RUDD SHOULD BE RUNNING IS TO GET RID OF THE STATE GOVERNMENTS. We dont need duplication, waste, finger pointing, we need effective Federal Government and competent local Councils. Its simple really.

      it will happen one day, hopefully in our lifetimes.

      Robert old chap, you are wasted in Real Estate, you need to stand for the Mad Monks seat or better still the ex ABC labor plant, whats her name McClue!

      Speaking of Labor plants, the 7.30 Report should not have an ex Labor staffer as its anchor. Its owned by every Australian, so we need to have balance and critical critique of everyone.

      The 2010 election will be won on Green preferences, so the Monk better swallow his pride and work that, or work out what he will be doing after 2010.

    • Mae says:

      Hi Robert, I think I spotted you in the photo!!!
      Great interview on reuncut, good info

    • Gordon says:

      Ann, you’re right about the Henry Review – it must be so toxic that it can’t be released before the election. There’s been speculation that it may call for a land tax on all property and a wealth tax on all assets including family homes.

      This would seem to be consistent with bureaucrat Henry and bureaucrat Krudd imposing taxes on anything that moves – or in this case doesn’t move, so is “easier” to tax.

      Not sure about relying on Greens for any relief, though. Their hard Left core is unlikely to result in any policy that will benefit Australia. Well, except for the hairy-nosed wombats, maybe. . .

    • Nicholas says:

      If Henry brings in land tax for everyone or a wealth tax, there will be rush to leave Australia and he will be outlawed.

      The more I think about it, KRUDD will call a double dissolution and hope that he has a majority or favourable independants in the next term. He hates being out of control. I think he could be thr first one term government since Gough Whitlam and we all know how his Government fared (over 45 year olds anyway)

    • Looks like I will have to research The Henry Review and write about that next week. See what leaks I can reveal 🙂

    • Robbie Mac says:

      The stats on referendum success are indeed poor, so the Emperor’s ploy is to make the states redundant – a de facto referendum if you like. Not a bad idea – rather than cut down the weed, starve it of nutrients – takes a bit longer, but the end result is the same. So the health takeover, which he should have done within months of taking power, when all the states were politcally aligned, makes sense from a holistic view. However, the devil is in the detail (for example, how does one install insulation batts?), and that is where it will all go horribly wrong. This is a government long on words and short on action, and this will be another classic example. I think Nicholas might be a touch optimistic about the one term, but if the election had been scheduled for 2011 instead of this year, then I might have shared the sentiment. Plenty more chapters in this saga yet!

    • Nicholas says:

      Robbie, You may be right. It will be won on preferences and whoever woos the Greens and other key independants will win the 2010 election. I think a double dissolution is a given, The Spin Emperor wants control, and he aint got it now.

    • […] towards housing, presenting challenges both to labour markets and governments. He must have read last week’s edition as Fort Fumbles (Federal government) have our builders constructing school halls instead of working […]

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