Economist Peter Bacon says government contributed to boom years property price rises

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.

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