How bad will the recession be when the housing bubble bursts??

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    Just watched ABC news and im a little bit worried about the next recession..
    Even though libs won, and any neg gearing/capital gains tax fears have been averted... RBA will cut rates and Banks will pander to their masters.. the banks will lower lending restrictions again to try and stimulate the economy... All with out wage growth ect.

    In this climate i think the housing price decrease is healthy, if interest rates are cut, lending restrictions slashed and house prices bounce we are setting our selves up for a massive bubble burst that will re-distribute wealth to the top end of town yet again when it happens..

    I wonder if this big stimulus strategy by the RBA, banks and private sector (the apartment mogul interviewed on the news had a direct line to SCOMO..) will set us up for a massive recession in a 3-5 years.

    Do we really need this on top of the restrictions that would have been imposed??

    I guess it would time it perfectly to blame it on any future government change, scary stuff..

    Last edited by Bennybop: 21/05/19
 
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