This is a syndicated repost published with the permission of True Economics. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.
Australia – a country with the biggest property bubble of all times and of all countries – is retracing the exact mis-governance steps as its predecessor claimant of the title, Ireland. Just as in Ireland pre-2008 bust, Australian central and regional Government figures are adding to the hype of ‘real estate investment’, whipping up households’ enthusiasm for property spending, just as the market is starting to crate:
While Australian property investors should be heading for the hills, Australian voters should consider actively advocating that the country (regional, etc) Government should adopt a more responsible approach to managing the risks of a massive bubble collapse. One suggestion – suitable not only to Australia, but to all economies around the world – would be to force politicians to be legally liable for what amounts to selling pitches and investment advice they so eagerly dish out.
How about a new way of thinking about accountability in politics? Your politician says ‘A’ and ‘B’ happens, you charge your politician for any damages that their call to action on the claim ‘A’ has produced. At least with such a system of ‘incentives’ in place, we might see politicians taking some time to reflect on the opportunistic garbage they push into public domain before speaking.