I remember that a long while back negative gearing was removed and
rental property just ended. The government had to reintroduce it again.
Must have been in the 70s I think.

If we do have the "crash" that everyone is saying will happen then as
unemployment rises either people will be living on the streets
or rents will fall
or the houses will stand empty
or many houses will appear on the market for sale.

Whichever way it goes then it will be recognised as a bubble burst.
It will all even out but the dollar value of houses will change but
the roof over your head will always have value relative to what
people can afford.

I think what I am saying is that those owing what in the new economy
will appear to be astronomical amounts of money will, if the banks
are still able to press for payment, face bankruptcy.
However the banks may be forced to write off defaulted loans.
The Financial Stability Board will probably use depositors money to
save the banks.

This is probably what will happen in the zero growth economy if it is
allowed to slip further and go into contraction.
Perhaps we need a lesson in the real economy, no one owes us a living
and the government is no ones mother's teat.

.....Perhaps we need a lesson in the real economy, no one owes us a living
and the government is no ones mother's teat.

And there in lies the problem Bazz, too many hands in the cookie jar.

Welfare must go back to being a HAND UP, as opposed to the current HAND OUT that it has become.

But, even that won't save us, we simply need a more efficient tax. One that is fair to all. With the exception of accountants of cause.

Rechtub while it is clear some want to, in advance, blame Government for anything this issue is not a government owned one.
Gee it gets hard talking to you some times.
And while my party drops its own support by not excepting its faults it hurts.
See welfare has nothing to do with this thread!
And the current war on wages,see Abbott/Hockey on SPC and other efforts to bust workers wages, those workers [lowest pay rises for ten years] confront the fact they never ever will own a home.
Make no mistake,Abbott and those who think like you are risking the lot on a class war yet to be declared but still it is there.
Work choices was a kindness compared to what Abbott seems hellbent on doing.
Now if we are to walk away from the subject be honest with me.
If it was under Labor not Liberal in control during the recent huge job loss you and Abbott would be screaming would you not?

You are right Belly in that the problem is not owned by any particular
party, but politicians are as a group all to blame for not taking
action more than 10 years ago when they were warned.

So I suggest that you forget history or traditional anti liberal cant
and adopt attitudes for the new economy which will be very different
to what has gone before.
Both Labour and Liberals and Nationals and Greens are going to be
forced into major change in their thought pattens.
Indeed political parties as we now know them are probably finished for ever.

Capitalism, will stay but it will be very small scale and socialism
will likewise be very local in scale.
There will not be the clash between them at all but a realisation
that they both will have their place in the new scheme of things.

Perhaps you & I might not see it but we are already seeing the early signs.

Bazz if only Liberals did not take too much
And Labor give too much
If only is a big word but I too think reform from both sides is coming.
It is my view the coming loss of two states by Labor, [not a traitor like act saying that just truth] The Royal Commission in to unions, will force reform on Labor.
I hold another view some will condemn me for but am unshakable in my belief.
Abbott has gone too far or intends to in time Liberalism will replace him and shudder to think of him.
But what warning ten years ago, what action could or should a government take to cool investments in housing?
We must not try to control free markets ,we bought NG to life, to increase investing and housing production, right or wrong it did its job.
If/when the bubble bursts it will be over investment and over committed investors who make it happen

.....If it was under Labor not Liberal in control during the recent huge job loss you and Abbott would be screaming would you not?

Belly, correct me if I'm wrong, but are you suggesting Abbott has caused this in a little more than four months? Surely you are not that neive to believe that.

All Tony Abbott has done, which by the way is how most business people would act, is to say no to further, unaffordable, unconditional cash hand outs, because after all it would appear that the formers governmentS have paid the floor workers wages, which meant that the over seas owners only had to fund the perks and overtime.

They have displayed that either they couldn't afford this, or chose not to once the gravy train ran dry.

Now as for your direct question, labors best option to encourage these mega businesses to stay, was to hit them with a great big tax, despite promising the opposite.

This effectively means that the cash splash has gone, but due to labors resistance, the huge tax remains.

So yes, I would have reacted to any such action by labor, on totally justified grounds.