The Chooks Are Losing Their Heads

This hysteria (hype) is becoming almost humorous:

On the eve of an expected 12th straight interest rate squeeze [Ed: why not use 'crush', or 'maceration' - 'devastation'?]by the Reserve Bank, the Rudd Government has moved to provide tax incentives for the building of 100,000 affordable rental properties.

What? Even more incentives? You mean Capital Gains Tax wasn’t enough?

I suppose if the States are now willing to free up some land, it may help – in the short term (and if they don't, then it will achieve pretty much nothing). Of course, if they keep screaming ‘doom’, the outcome in the longer term is going to be extremely nasty indeed, as the economy starts coming off the rails.

Because, in economic terms, that’s precisely what happens if you run around screaming ‘the sky is falling’ for long enough.

The problem for Federal Labor is whether or not the community will blame the Liberals (as the ALP is hoping) or not.

Believe it or not, I actually don’t like the ALP’s chances here, despite Captain Numbskull’s best efforts:

Opposition Leader Brendan Nelson said the affordable housing tax incentives were "a step in the right direction".
No more to say, really.


Update: Black is white: "Mr Rudd said the Opposition, led by Brendan Nelson and Treasury spokesman Malcolm Turnbull, was irresponsible for "talking the economy down" and beating the "recession drum". "

Whaaaaat?

The only ones talking down the economy have been Rudd and Swan et. al. in a desperate attempt to create a ‘black hole’ myth! The Liberals (and business) have been telling them to stop doing it!

This is getting crazier by the minute – seriously. Australia's just voted in a pack of screaming loons.

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