Government agencies around Australia are standing up to support the campaign to end violence against women today for White Ribbon Day.
ALL THINGS P: The federal government wants to know which open data would be most useful to business, researc
We recently moved our readers to a new system. You may need to reset your password here to login.
Not a member ? Join here for free.
Forgot your password?
Home Features Tom Burton: Don’t mention the B word in Sydney
Text size :
DEPARTMENTSNSW Treasury, Reserve Bank of Australia
TAGS Boom and bust, Business cycle, Business/Finance, Economic bubbles, Economic history, economics, Financial crises, Housing, housing affordability, Inflation, infrastructure, Macroeconomics, NSW budget, Real estate bubble, Sydney
As NSW spends up big on infrastructure, health and education, no one seems to want to talk about the real estate bubble threatening to ruin the party.
What bubble economy?
The smell of high octane speculation is evident every successive Saturday in the nation’s biggest city. Add the likes of RBA governor Glenn Stevens, and federal Treasury secretary John Fraser, angsting about the “crazy” 30% increase in Sydney houses prices, and you would have hoped the possibility of a damaging bust would have featured large in today’s NSW budget papers.
Instead there was not a mention of the words ‘bubble’ or ‘bust’. The only B word NSW Treasury was prepared to utter was that the risks were “evenly balanced”. Shades of then US Federal Reserve chief, Alan Greenspan, who months before the global crash of 2008 also declared all the risks were in balance.
The closest Treasury was prepared to go was to muse about the dangers of a medium-term “disorderly correction” in housing prices, if interest rates continue to be low for a prolonged period — as most sensible economists are predicting.
Receive unlimited access, get all the latest public sector news and features, plus The Juice, our daily news update sent direct to your inbox.
The Mandarin is where Australia's public sector leaders discuss their work and the issues faced within modern bureaucracy. Join today to discover the latest in public administration thinking and news from our dedicated reporters, current and former agency heads and senior executives.
Tom Burton is publisher of The Mandarin based in Sydney. He has served in various public administration roles, specialising in digital engagement. He was a Walkley Award-winning journalist and executive editor of The Sydney Morning Herald. He worked as Canberra bureau chief for the Australian Financial Review and as managing editor of smh.com.au. He most recently worked at the Australian Communications and Media Authority.
Read Related Content