Tuesday, September 14, 2010

Cruising along in our Aussie cloud of unknowing

Ah, Australian exceptionalism! Could there ever be a more persistent yet fragile weed? Will a cold winter wind ever arise breaking those delicate fronds? Or will it be the relentless heat of summer which shrivels them to wisps of brown? No doubt we shall find out in due course.

In the meantime those guardians of our prosperity, the banks, are hard at work spreading the Love. Consider this, from News.com.au, which tells of yet more loosening of the purse strings helping feed our insane housing bubble (Bubble? It's demand lead isn't it? Another example of just how blessed, virtuous and better than everywhere else this great country is! Everyone wants to live here! In our endless good-news Aussie paradise!).

And these august Aussie banks, bastions of goodness and competence, would never, never tell fibs would they? Well, that mean man Steve Keen thinks they do. Have a look at what his digging has found out here about what the Commonwealth Bank has cooked up to suck in those overseas investors.

How thin our world view really is. Just because 95% of the population believes a particular delusion (witchcraft, the Earth being flat, endless rising real estate value) doesn't make it any truer. It just makes the bust when it comes that much more miserable.

Oh, check out Mish's take on it too.

Edit: David Llewellyn-Smith at Henry Thornton's pulls apart the Commonwealth's scheme even further. He also links to this blast in The Australian's business section. And Steve Keen weighs in again here.

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