If you stop population growth then there is no housing crisis or housing affordability crisis. Population growth is just a lazy, but very damaging, way of driving economic growth.

Right on the button, Michael

Ironically, polulation (worker/consumer) growth is the only way to grow an economy, which after all is just people and how they make stuff which costs money. Most of which is vastly surplus to requirements.

The whole 'growth' mantra itself is deeply flawed. Then again its hardly surprising that the house-of-cards, credit-creation, pump-priming illusion that is modern economy is driven by the illusion of 'growth.'

Beyond that, an occassionally distructive war, pestilence, disease or disaster that wipes out a sizeable chunk of population and civilasation, which then needs re-building and repopulation is the way to go. Prolly solve climate change 'crisi' overnight too. Or at least delay it until the next critical mass contrives it self perpetuating emerging crisis.

Please, please, can someone explain what is going on, as it has me totally mystified. I gather that people were offered loans from banks, and they voluntarily accepted them. Why? I must be extremely old-fashioned, but I just can't understand why anyone would borrow money to buy consumables. I can understand people borrowing to buy an asset, but consumables? I was brought up to what is obviously a very old-fashioned idea that if you want something, you save up first, and then buy, doing your best to beat them down, and seeking a discount for cash payment. If you haven't got the money to buy something, you go without. The other idea I was brought up to was that the only necessities in life were food, water, and something to keep off the rain. Everything else is a luxury.

The result of living this way is that I have a wonderful house, with no debt at all, a six figure sum in my super account at call, and feel that I have everything I could possibly want.

Whatever possessed these silly people to borrow all this money?

The secret of happiness in life is NOT to spend.

Plerdsus, after the world economy was devastated by WWII, the baby boomers had to work hard to acquire anything that could be described as 'luxury'. This lead to them to understand the value of hard work, but also measure success based on the acquisition of material goods. Unfortunately it seems that few of the next generation have inherited the former while many have inherited the later. This leads to people taking the easy option of credit to acquire material good, and thus achieve 'success'.

I think what we're seeing is the inevitable cost to society of such wide spread undervaluing of financial security, along with an education system that is failing to prepare people for an increasingly complex society. The financial security of buying a house comes not from owning such a high value asset, but rather in the elimination of the liability of rent.

Plerdsus,

Good on you. There aren't many of us left. Last night or the night before, we were told by a bleeding-heart TV current affairs presenter that our 'hearts (should) go out to' a couple who had just been served a bank notice to quit their house after they had defaulted on the mortgage.

The large swimming pool, large block and large house were obviously completely oustide the means of the couple involved.

There are undoubtedly some shonky lenders out there, but one of the major banks was involved in this case. Now, I don't like banks and use a credit union myself but, I find it hard to believe that a bank that has been around ever since banking started in Australia could be regarded as shonky when it comes to lending. And, it is my understanding that you have to be well behind in your repayments before a bank will foreclose. They are, after all, in the banking business, not real estate.

It is an old adage that you cannot legislate for fools, and there are a lot of fools out there borrowing money they cannot afford.

With apologies to Nicholas Gruen, 'Will no one rid society of these silly borrowers?'

It would be nice if everyone who wanted to own his or her own home could do so. But, while having a home should be a right, there is no right to ownership, and their never will be.

People need to come to their senses. They are not compelled to borrow, and there is no point in blaming the lender for the mess they find themselves in.