A debt – defying week from our political asylums!

A debt – defying week from our political asylums!

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It was more like an episode from Yes Minister, where both Fort Fumble (Federal Government) and Fort Crumble (NSW Government) tried to outdo one another at the Ministries for Incompetence and Implosion (what an art form they made of it). Fort Crumble is hardly flush with cash as it languishes in deficit yet it still manages to masticate on its scrapped CBD Metro for a north – west rail link which is now its tenth transport cancellation.

The Ministry for Incompetence and Implosion then asked voters to “take it on trust, because work would not begin until 2014 at the earliest”. Obviously nobody at Fort Crumble knows how to read a poll Confirmed: scrapped Metro cost $271 million because this would have to be close to the greatest stuff – up in NSW’s parliamentary history. To reassure voters, it then introduced a $30 – a – year – levy on motor vehicle registrations which is estimated to deliver $500 million over 10 years.Would it be improper to suggest that liquidators will be called in well before 2014? Yes Minister!

The Premier, Kristina Keneally was on a roll when endorsing a plan to build one of Sydney’s biggest hotels which just happens to be 100 metres out over Sydney Harbour. Harbour high – rise breaks all the rules but she insisted that this decision would not create a precedent that other developers would seek to follow? Well Sarah, (I mean Kristina) a precedent is defined as: any act, decision, or case that serves as a guide or justification for subsequent situations. Yes Minister!

Melbourne

Tim Mooney flew to Melbourne this week and why not? A fantastic shot of Melbourne CBD and the Yarra River.

Tim Mooney Photography

The other Ministry for Incompetence and Implosion – Fort Fumble had The Emperor (Kevin Rudd) going somewhat batty when his rock star minister somehow lost his voice Peter Garrett dumps dodgy home insulation scheme. Call me a cynic, but I observed that the announcement was scheduled for 1.45 pm last Friday. Torah Bright won gold at the Winter Olympics in Vancouver at 1.00 pm in the half pipe – must have been either a coincidence or political spin. Yes Minister!

Whilst The Emperor accepts ultimate responsibility for his insulation debacle which has been linked to four deaths and 93 house fires, with another 80,000 houses at risk, this scheme cost taxpayers $2.500 billion and thousands will be out of work after insulation back flip. The Emperor was quick to appease a voter backlash so (he pledged another $42 million) to the (approximately) 7,500 businesses installing installation and 180,000 houses that have to be re-checked. The Emperor’s rock star minister declared that he can read music but not commissioned reports. When the Minter Ellison Report was handed to his stage hands in April 2009, it took ten months to arrive in the rock star’s recording studio – Yes Minister!

The Emperor had to move fast as Torah Bright had concluded her Olympic event – so out came the announcement $69 million for biometric checks in counter – terrorism. It was suggested that some are: Going batty over blah – blah. Paul Sheehan from the Sydney Morning Herald had a different spin: How Rudd the dud dropped Australia in alphabet soup. A horrific week for Fort Fumble: Collins subs top $7 billion of dud projects submarines don’t require Pink Batts). It was just not cricket when it was announced that the Victorian gocernment was flying 25 Indian journalists to Australia at a cost of $250,000 – business class flights, tours of the Melbourne Cricket Ground (our cricketers are in New Zealand), concert tickets and accommodation at top hotels – to show that everything is hunky dory Down Under. Despite some saying Indian money ‘could be better spent’ one would think that given the intoxication and obsession with governments to spend money that we are actually in surplus – (obviously they believe that we are).

Cash-rate-futures

The debate then moved to Australia’s mortgage debt blow – out when Chris Zappone wrote in the Sydney Morning Herald “The federal government relaxed its foreign investment rules for residential property early last year. Whilst the controlling body, the Foreign Investment Review Board, does not disclose the exact number of sales to overseas investors, anecdotal reports from would – be local buyers and real estate agents across the country point to a surge in spending from Asia – particularly mainland China. Agents are also setting up offices in China and arranging “property tourism” to tap the demand.” I am a strong believer that our real estate market needs to be local not international and it would be very interesting to see why The Emperor changed these qualification rules? Are they considering returning to the previous status quo?

939655-property-market

Furthermore, under his regime will it remain in place given the economic recovery in Australia? The Housing Industry Association (HIA) noted that (home ownership was even more out of reach) when housing affordability tanked 18.4 per cent in the December quarter and was 22.3 per cent lower than twelve months earlier. The HIA is predicting a modest housing recovery in 2010 with about 152,000 dwelling starts and we need international competition?

Housing debt is in overdrive where the latest Reserve Bank of Australia (RBA) figures identify that housing debt hit $910.1 billion in December, which is up 17 per cent over the twelve months and up 92 per cent since December 2004. Total housing debt is set to reach $1 trillion within the next twelve months and rest assured, interest rates will be heading up not down.

Interest-rates-over-time

The Emperor has plenty on his plate all in an election year Rudd, Gillard fight over who foots the bill for $1,800 canapés and champagne wow – when it rains it pours.

This week we broke a new Australian record when subscriber sales hit $904,079,220 and real estate agencies are just starting to know what a database can do! From the good, to the bad and ugly Estate agent Shannon Daniels made a real killing I can’t believe that somebody would be dumb enough to run his “Deceased Estate (Vendors Dying To Sell)” campaign given the vendors are very much alive and well.

Given the lodged complaints Shannon Daniels won’t be hearing – thank you, Mr Hooker!

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 – the auctioneers hammer was silent in Mosman

This open for inspections – here

9 Responses to “A debt – defying week from our political asylums!”

  • Patricia says:

    Brilliant column, Robert, there was fertile fodder to nail this week and you did so admirably.

  • Nicholas says:

    Hi Robert,

    The sun, moon and stars were in alignment for your column this week. A week of incompetence across the country, with SPIN doctors burning the “midnight oil”. The Emperor (Kevin Rudd) was even giving out his phone number to appease angry house owners and installers. Then he walks out of Parliament to calm angry protesters, without security in sight. A first on many fronts this week in Canberra.

    No point talking about the NSW Metro and other fiascos, they have 12 months 3 weeks left and anyone but them would win. It will be interesting seeing where some of the Ministers will get jobs after they leave politics. Suffice to say the Lemonade Stand vendors are safe.

    I had to laugh when I saw the agents at Campbelltown with the dying to sell ad, reminds me of their namesakes moving close to the Funeral Directors, in dead end / double park alley in Glover Street.

  • Thank you – I must admit that as the week unfolded I could not remember a greater implosion and by all accounts there will be quite a few more it appears and we are ready to catch them 🙂

    Subscriber sales just jumped another $5,000,000 – $909,079,220!!

    Cheers

  • Patricia says:

    Expanding on Nicholas’s comment, it’s a toss-up between Cremorne Junction and St Helens Park being the dead centre of town.

  • Thanks for joining me up Robert. Looking forward to reading your column every week.

    Cheers

  • Mark says:

    I notice this week Robert, that not one property was sold at Auction in Mosman. They were all passed in or withdrawn. Looks like auctions are on the nose.

  • Mark,

    Whilst not that surprised with these results it will be interesting to see if the tide turns in coming months given the newspapers are talking up the market big time. So much content to write about at present – and this week The Emperor is already off to a shocker if you saw him on Insiders yesterday 🙂

  • Robbie Mac says:

    At last, the Emperor and his true colours (and new clothes), are being seen for what they really are. I am surprised that he has managed to hold it together this long – the indecision, the naivety of government, the inability to do anything of substance. Perhaps poor old Malcolm WAS the wrong guy to counter that behaviour, whereas the Mad Monk is the perfect opponent. I expect plenty more theatre before the Federal election. Perhaps we could run a book on the Emperor and his popularity rating – will it drop more than interest rates rise? I know where my money is!!!

    As to KK’s increased rating, that is totally disconnected from reality (apart from the puppet strings of course!), as most women want to be her, and most guys want to (ahem…) be with her. The rest of her mob become irrelevant in that sort of mindset. And the rest of the mob are so on the nose – the stench of death abounds – but does Fatty O’Barrell have the killer instinct? If a week is a long time in politics, then a year is an eternity, and if FO’B isn’t careful, he will lose the “unloseable” election. It has happened before, and not that long ago. Beware…..

    That said, if we have another week like the last one, the drover’s deceased dog will romp it in. 🙂

  • Well summed up Robbie – I just read on Twitter WARNING: due to the interest rate rise, there is a high risk of Wayne Swan appearing on tv screens today. Remain calm and change channel.

    Now we sit and wait to see what the Big Four do either + .25 per cent or – .25 per cent? It’s a fantastic time to have a blog 🙂

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