Confusing popularity and bad policy – a lesson that talk is not cheap!

Confusing popularity and bad policy – a lesson that talk is not cheap!

In the Aussie vernacular we call it “dumber and dumber” – The Emperor (Kevin Rudd) prefers to call it “shaking his sauce bottle”. What this really means, is that he instigates a plan, turns it into  a huge economic catastrophe  and leaves it for someone else to sort out! .  The cracks are starting to appear everywhere so let’s look at them.  Political polyfilla is not the answer, as Fort Fumble (Federal Government) experiments and fails miserably with untested, bad policies – their learning curve.

Ross Gittins wrote in The Sydney Morning Herald Rudd ominously silent on climate change. “We know Kevin Rudd has what it takes to win elections and it would be amazing to see him lose this year. So we know he can survive as prime minister. A much harder question is whether he has what it takes to be a good prime minister.” The Emperor has transformed himself from a Yes Minister to a Guess Minister! Or possibly a Guest Minister!  He can’t differentiate between ‘politically correct’ and ‘policy correct’ – The Emperor’s scorecard is displaying the letter “F” (Fail or F#$@ – up).

“Rudd has been frenetically active since Day 1. So it’s truer to say he doesn’t have a lot to show for all his activity. And some of what he has to show isn’t very impressive. His notorious attention to detail doesn’t seem to be paying off.” I would challenge the words paying off – as Australia will be paying – off these bad policies (on the run) for many years to come and with nothing to show for it.



Tim Mooney is developing a cult following here and this Paddington capture shows why – maybe one of our Eastern Suburbs real estate agent subscribers can identify which street this is? A timely photograph given last weekend’s ‘Super Saturday’ which is also addressed in this week’s edition.  Maybe the” Mosman Word Smith” can add some light given skylight sales are obviously very popular in Paddington – let there be light and insight! Over to you Billy boy – I’m sure you can’t identify it.

.Back to Ross Gittins “This is true of their reporting of the insulation scheme and the school building program. Even so, you get the feeling we’re seeing an instance of Rudd’s inexperience as a leader – his belief that, by thumping the table, he could make things happen.” Now for another crack – “I think it was veteran journalist Laurie Oakes who said that in Howard’s first term he made every mistake in the book – but he only made them once. Has Rudd got such a steep learning curve? I hope so, but I’m beginning to wonder.” The great moral challenge of our time, climate change, is no longer great and it’s no longer a challenge for The Emperor who has buried this along with his double dissolution threats. Rudd’s home insulation scheme caves in more than $1.500 billion has been spent and there are now concerns that the repair bill for roof inspections and the replacement of botched insulation will consume what money is left in the scheme – an estimated $800 million. Hospitals -next?

High clearance rate makes a Super Saturday wrote Jonathan Chancellor from The Sydney Morning Herald. “Given the weight of auction listings, the 680 weekend vendors did rather well on Super Saturday, the second biggest auction day in the state’s history.” From the 680 weekend auctions Mosman conducted 11, for a clearance rate of 78 per cent according to Domain Property Data. The highest Mosman auction house sale was $3.600 million. “The inner west remains the red – hot epicentre in Sydney, with an 83 per cent success rate from the 100 listings – at an average of $955,000.” Now another crack “the south west – with only a 50 per cent clearance rate – was the weekend’s poorest auction district.” When the First Home Buyers Grant was running this was the strongest region – although this demographic property dashboard is a major concern when interest rates start increasing.  Just like 2006, when property prices dropped significantly. House sales going, going gone for a record and families camping out for land in new ‘town’. Housing shortage set to get worse yet house sales fall in February: HIA report.

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Here is why – property market may be overheated, RBA Governor Glenn Stevens says reaffirmed that interest rates were on the way up, countering a belief held by some that rates would remain low after the global financial crisis. Economists are now calibrating a 60 per cent likelihood of a +0.25 per cent cash rate increase when our Reserve Bank of Australia board meets next Tuesday, to share cucumber sandwiches and croissants washed down with copious amounts of herbal teas.

Of course the bull in our property china shop will be discussed. The Emperor, for unknown reasons, lifted foreign ownership restrictions which previously were set in stone. Chinese buyers underpin housing prices prompting RBA governor to request data from the Foreign Investment Review Board in order to ascertain and pinpoint their exact participation – good luck!

Last week, the Australian Bureau of Statistics revealed that Australia’s population reached 22,066,000 on September 30, 2009. 66 per cent of population growth was due to overseas migration and 34 per cent was due to births over deaths. Let’s get real on population and The Emperor cracks a century 100th asylum boat intercepts navy patrol where our latest arrivals sailed in undetected at Flying Fish Cove then called Australian authorities to advise that they were ready to book in – room service? Of course not, the island is not, named after Father Christmas for nothing. Fort Fumble has been forced to run a series of advertisements in Indonesian newspapers – ‘No Vacancies presently at our Australian island resorts on our west coast yet vacancies remain on Hayman and Hamilton Island. Please take a minute to observe this video Queensland beautiful one day – perfect the next.’

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Cap no solution to Australia’s population challenges said Wayne Swan “that is why we are investing so heavily in our infrastructure.” Reserve Bank governor Glenn Stevens says Sydney property boom will make it hard for his children to buy home then the Mad Monk – Tony Abbott ran in and said Rudd has presided over rip off after rip off yet our Australian population growth is double the world average. So what we need is more policy when Julia Gillard announced that Tony Abbott should be making policy, not running. Julia, he did announce policy when, prior to commencing the Iron Man competition, he said he would break 14 hours!  Well he delivered 13:57:01 and that is a political announcement that came within time! Home insulation, schools, border protection and population are sensational policies too, as is the demoting of (the human headline) Barnaby Joyce.

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I agree with Ms. Gillard that the Mad Monk should concentrate on policy not running (although Julia’s policies are fast becoming a national embarrassment). However, we must give credit where it is due and our Fort Fumble is addicted to buying credit (apparently endemic within the teachings at the School of Economic Conservatism).  Plenty to report next week on that.

Have a fantastic and safe Easter (just a bit of trivia) it was six years ago when Sydney last had a totally dry Easter and I’m not talking about alcohol! To the Virtual Realty News blog we go.

Cheers ^__^

Note: this is the strongest sales evidence we have seen since the global financial crisis entered our lives. This week’s sales Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, Cremorne real estate, Cremorne Point real estate, Neutral Bay real estate, Cammeray real estate Click Here

6 Responses to “Confusing popularity and bad policy – a lesson that talk is not cheap!”

  • Lachie says:

    According to Bernard Keane, foreign investment isn’t affecting house prices as much as we are led to believe.

    Worth a read, even if you disagree.

  • Lachie,

    I read that article and yes it’s most dismissive – however the only people that really know are the real estate agents 🙂

  • Robbie Mac says:

    Interestingly, the Federal Government is currently running a tender for a “Community Centre” in the Cocos (Keeling) Islands – not a million miles from Christmas Island. And one of the requirements is that it needs to be able to sleep people. Conspiracy theories anyone?

    And a big clue for “Billy boy” – the terraces are actually in Darlinghurst, not Paddington, so perhaps it’s a trick question…..

    Have a safe and Happy Easter, and watch out for the boys and girls in blue. They were already in their usual haunts this morning.

  • Alison says:

    I have no doubt that the Mr Stevens and his cucumber eating colleagues will increase rates and cause the momentum in the property market to change a gear or two. Having seen it before, like deja vu, the rate changes are based on what has happened over the previous month and not what is happening right now. They continue till the market eventually dives into a plummeting spiral, that cannot be recovered. Lets pray that if they continue to go on this upward path they don’t send us into a “globally late” property market crash. Fort Fumble has spend all our reserves and there will be no rescue packages for the poor old property market (myself included) if this does happen. Lets hope the Reserve Bank executive really does think about the train wreck it will cause if its gets the timing wrong.

  • Anna Dawson says:

    Great edition this week Rob. A very interesting read.

  • Robbie – are you sure on Keeling or should that be Keating? Great point you make (as usual) we shall have watch developments there closely. It could actually be Darlinghurst although Tim said it was Paddington. We did get Kirribilli House confused with Admiralty House recently 🙂

    Alison – great post and I agree 100 per cent with you. Although having read the Saturday papers I get a feeling the RBA have cold feel – so it may well see the cash rate remain the same.

    Anna – thanks and I love your new website all the very best with business and thanks for commenting. Greatly appreciated 🙂

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