- 10 November 2015
Whose Crystal Ball Is Telling The Truth?
The bank monopoly beat up, not their share holders but, their customers.
However, APRA's chairman Wayne Byers just last Friday said, "rules that have forced banks to hold more capital have made them safer and as such investors should require marginally less return".
It seems that Byers crystal ball is cloudy. He does not realise that there is a monopoly. In a monopoly the free market doesn't set prices - the monopolist does.
Byers' crystal ball is equally foggy on his claim that Sydney particularly, and then Melbourne prices are booming out of control and that he has to prick that balloon by restricting loans to investors. He is ignorant to the fact that the previous cycle saw Sydney and Melbourne "ballooning prices" go higher than they currently are. Then as now, more supply came into the market to correct it and level off price gains...
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