12 April 2011

The familiar path to financial crisis

Critics have been vocal about the efforts by government to pump up the property bubble – including the doubling of the First Home Owner Grant, negative gearing and the halving of capital gains tax.

However, there's another measure that seems to have been overlooked.

In a statement on Friday, Treasurer Wayne Swan said:

"Today I announce that I have directed the Australian Office of Financial Management (AOFM) to invest a further $4 billion in high-quality, AAA-rated Australian residential mortgage-backed securities (RMBS) to help smaller lenders continue to offer competitive loans to families and small businesses."

Source: www.news.com.au