What does that mean for the exaggeration by Morrison over the effect of Labor's policies on negative gearing?
He's keen to divert attention from the following realiities:
Loans are harder to get because the banks have colossal exposure due to their lax compliance on lending.
The exposure is legal, they're likely to get sued for the egregious cases of fraud. The exposure is for bad loans, likely to increase now that house prices are starting to turn down. The exposure is because it will now be more expensive to borrow from international banks. Australia is now seen as more risky.
All self inflicted wounds, and this is just the start.
You used to claim the housing market was sound, and our lending practices sound. ASIC was doing a great job, etc.
Not really the case, is it?
But yes, global trade may well rebound. But 65% of Australian banks lending is in the domestic housing market and it's starting to tank.
