With such an august CV the writer ought surely to have learned by now that the amoral politico-economic system that has provided him with such exalted qualifications, career opportunities and pleasant lifestyle is riddled with contradictions and social inequities.

Accordingly, under the 'growth and progress' promised by the peddlers of globalisation his rhetorical question regarding the need to somehow alter Australia's economic policy is surely some form of sophistry.

"a collapse in house prices in New South Wales in particular, with signs that the malaise is now spreading to the boom states of Queensland and Western Australia."

I'm no starry-eyed optimist on the economy but you have to admit this assertion is wrong. House price haven't collapsed. Down a bit across the board on a year ago perhaps, but no collapse. There are also crucial differences between here and the UK. For a start, rents there are falling, here they are rising strongly.

"housing remains unaffordable for new entrants, which indicates that resurgence in values isn’t likely in the near future."

Let's be clear about one thing. The media have been driving a lot of the hysteria about housing affordability. It's not as bad as all that. The RBA published a paper recently that showed that in terms of the average house for the average buyer, affordability is not out of line with long term averages.

Alot of this is hysteria is driven by newspaper editors who can't get their kids out of the house because the spoilt little darlings want to move straight into a Darlinghurst terrace and they can't afford to.


"Is it possible that the resources boom and measures being taken to keep its impact in check are disguising the same fundamental problems in the domestic economy"

Well, are they disguising them or ameliorating them? The resources boom improves the terms of trade, which adds to national income. Another crucial difference between here and the UK.