Cyclone Debbie or Cyclone APRA?

Cyclone Debbie and Cyclone APRA are really both the same. They devastate supply. Now Cyclone Debbie has gone through North Queensland we know there is going to be a shortage of a lot of fruit and vegetables and of course the famous bananas!

We all know however that cyclones aren't annual and next season we will have a new fresh supply coming through. So while prices will rise now us consumers sleep safely in our beds knowing that we won't be ripped off for long, the prices will come down.

But what about if Wayne Byres from APRA was in charge?

Given APRA's performance with the rise in Sydney property prices, I can see the following scenario with bananas, fruit and vegetables. Wayne would immediately restrict the flow of funds going to workers planting new fruit, vegetables and bananas. These planters of new crops - these new investors in future supply, would have their funds restricted. Fewer people would be able to be employed and we will have less crops planted.

Wayne Byres and APRA will be happy that they have achieved success??

This sounds farcical doesn't it but this is exactly what's happening to the property industry - just because of a cyclical temporary rise in Sydney property prices. You and I know that it is cyclical. You and I know that it is temporary as it was in the property boom in Sydney in 2000 to 2004. You and I know that new supply fuelled by investors comes into the market as it did in 2005 and 2006, to level the rate of property increase.

However, let's look through Wayne Byres eyes. He doesn't know the property market. He doesn't know cycles. He only knows his beloved banking industry. At Bassel in Switzerland, he was given the job from the Rudd Government to assist the overloading of the bad banks who had too much bad debt and not enough capital. They reacted far, far too late to a problem that I identified back in 2005 at our conference. So instead of these public servants being whiplashed, they escaped responsibility!

Now Wayne Byres returns from Switzerland determined to enforce this rich bank manifesto. The problem is, poor old Wayne has come back to a sick economy with rising unemployment. The squeezing of consumers to push money into the "safe bank" mantra is causing what now has turned out to be a six-year credit squeeze. And our beloved members of parliament can't work out why the consumers are irate.

It's jobs jobs jobs.

The remedy? Put Wayne Byres, APRA, RBA onto a commission basis. Strip their million dollar public servant wage and make it a commission based on the rise or fall of unemployment in Australia. The two million unemployed and underemployed seem to have been lost. If this number reduces then their pay goes up. If this number stays the same then they are paid the basic wage. What do you think? Would we get more "bananas"? (property) into Sydney? Would it stop the Sydney eccentric thinking of the RBA and APRA? Where was their panic in 2007 and 2008 when Perth and Queensland went through a boom?

No panic, no concern, because Sydney was OK. What do you think?

This is why we have started our Beat the Banks campaign. We want to help our members find those hidden savings and put it back into their pockets! If we can't save you $500 off your loans then we will give you $500!* Simples.

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Kevin Young // Club Founder