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.
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.
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 Report – Kevin 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.”
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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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;
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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 ^__^
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