Friday, March 28, 2008

Containing mortgage rates - I hesitate to endorse this idea

The last time I endorsed an unarguably good idea, the Minister rejected it.

That's why I am wary about endorsing this one.

It is another nobrainer - harnessing the reputation of the Commonwealth to reassure foreign investors that Australian mortgages are of uncommonly good quality.

But what if the Treasurer has about as many brains as the Health Minister appeared to have?

I am worried. The 2020 participant Joshua Gans is the co-author of both.

The other co-author of the mortgage proposal is the impressive Christopher Joye.

6 comments:

Joshua Gans said...

Well on the plus side, this idea doesn't involve either taking away money someone was 'due' to get or admitting that people were wrong.

Peter said...

And the phenomenon of "return to mean" suggests that pretty soon one of your ideas is going to be taken seriously and acted on.

Joshua Gans said...

True. I will just have to keep throwing them out there. Quantity matters.

Graeme said...

I agree this IS a good idea... but I've warned you two before about excessive back-slapping!

Colin Campbell said...

I think that this would help to level the playing field. It would challenge Australias love for the cozy business arrangements and provide longer term stability for this market.

Is it not unhealthy that so few players control a huge market that underpins Australian families long term wealth?

Anonymous said...

Would this be a one-off injection of funds or would there need to be ongoing or periodic assistance to this sector to keep them viable?

Al

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