What can happen in a slump LOTS OF QUESTIONS

Well Duckster, thats partly true

But i do take offence to your statement "I feel that Labor may have learned from the last recession …………………….."

You obviously wheren't there for the Howard Recession of 1982

Let me remind you with some extracts from my local paper

June 1982
"by allowing the banks to lift morgage interest rates, it touched off a chain reaction that, despite Treasurer John Howard's absurd insistence to the contrary, has forces many young couples from their homes. Many more must be hanging on by the skin of their teeth. People struggling to keep a roof over their heads will cut back in other areas to be able to meet their mortgage repayments."

Sound familiar

Another extract from local newspaper July 1982
"rental accommodation was in a crisis situation, rents have gone up an average of 40% in the past year"

I'm sure there'll be some IP owners hoping the same will happen again

One more extract July 1982
"If John Howard insists the Government is "doing its best" to keep down housing interest rates, then its clear "best" is not good enough. If for no other reason than its own political survival, the Government must come up with a plan that keeps people in their homes"

Of course if you did a bit of research, and looked up the Hansard records of 1982 , you'll find gems like this…….

Hansard Oct. 1982

Humphrey (Griffith) "Is the present interest rate for most commercial enterprises between 17 per cent and 20 per cent and is this the most destructive force to business and the private sector."

Howard (Bennalong) "It is not possible to provide exact figures on interest costs for commercial enterprises, but available data suggest a range of about 15 per cent to 20 per cent for short term commercial interest rates. Such high interest rates are undeniably detrimental to private sector activity………….."

WHAT.,…..your the Treasurer of the country, and you carn't provide the EXACT figure"

How about…..PICK UP PHONE……RING RBA……."Hi it JH here, greatest Treasurer this country has ever had………can you ask the girls in the typing pool what the current 90 day interest bill is?"

"Its  21.39%"

repeat 21.39%. in April 1982 ..the highest of any government in the history of australia

I know…..i started a businesses in 1978….and yes I paid thru the nose………..

BUT interest rates for home loans where held at 13.5% for home loans by government regulation, and of course John Howard realised this was not substainable.

Why?

Well how can 16.5% be offered to depositors for their money,
and Home borrowers be charged 13.5%????

IT CARN'T

thats why……………………

Extract Local Paper July 1982
"Loans Hard to come by…
banks are undoubtedly diverting new applicants for loans to more expensive forms of borrowing, such as personal loans or even hire purchase."

15 – 20%….WOW……..

ALL THIS UNDER  JOHN HOWARD AS TRESURER

Hansard Mar 1982

"BANK MORTAGE INTEREST RATES
Mr WILLIS —My question to the Treasurer (J.Howard) concerns the Campbell Committee of Inquiry into the Australian Financial System and its conclusion that bank mortgage interest rates should be deregulated. Is the Treasurer aware that the Committee concluded that, with deregulation, bank mortgage rates would rise from their current level of 12 1/2 per cent to the Government bond rate, now at 15 per cent? Is the Treasurer also aware that a recent study by two economists at the Australian National University Centre for Economics Policy Research showed that at the interest rate levels prevailing last December deregulation would raise the average mortgage interest rate from 13.6 per cent to between 17 per cent and 18 per cent? In view of these horrendous interest rate consequences that would flow from deregulation and the great concern in the community about the future course of interest rates, will the Treasurer now assure the House that the Government will reject out of hand the Campbell Committee proposal for deregulation of interest rates?

Mr HOWARD —I am aware of the conclusions reached in the Campbell Committee report . In fairness to the report I think I should point out to the honourable gentleman that the conclusion was that certain interest rates would suffer the rises suggested by the honourable gentleman, other interest rates could well fall and that it could well be that the average cost of money borrowed might not vary over time a great deal at all. I think in all the debate on this issue variations in the average cost of money over a period have to be borne in mind. I have made it clear on a number of occasions that the recommendations of the Campbell report are relevant to what the Government is looking at in the housing area. I do not intend to respond to the invitation of the honourable member for Gellibrand and in any way pre-empt a decision of the Cabinet at this time or at some future time on that or other recommendations of the Campbell report."

And Yes, I did go thru the 1990 Keating recession

While a lot of businesses where pumping money into Commerical properties like there was no tomorrow….
I pumped it into my business…………..

St.Kilda Rd Melbourne has bearly absorbed the 1990 office construction boom.

The great thing about recessions……is BARGAINS….boy, can you buy bargains

if your hocked up to the hilt………your gone
for every loser…..there's a winner

After 30 years of booms and busts, all I can say is………………..

"For all the cr*p that John Howard has spun in 30 years in politics,
this one……is the most truthful"

(Hansard Dec1982)

"Governments do not, of course, have complete control over economic events and cannot bear sole responsibility for economic outcomes."

THANK YOU…..&   GOOD LUCK