Speaking today at the Joint Committee of Inquiry into the Banking Crisis economist Dr Peter Bacon said the government contributed to the run-away property price rises. The government had asked Dr Bacon for recommendations on how to deal with the rapidly over-heating property market they then reversed a number of his key recommendations including cutting stamp duty for investors.
The line I love best in his contribution today was when he spoke of been called to a meeting with the Minister for Finance in Nov/Dec 2008 to give his thoughts and advice on the crisis then unravelling he says ““The meeting happened. The meeting ended. I walked away scratching my head.” Isn’t that just beautiful? That line just about sums up the whole crazy affair.