Fools, fools, fools!

The Sydney Herald reports: Reserve Bank unfazed as housing prices keep rising.

Worried that $500,000 is too much to pay for a Melbourne house? The Reserve Bank isn't worried and it expects prices to climb higher still.

In a speech that amounted to a defence of Australia's historically high house prices, Reserve Bank deputy governor Ric Battellino told a Melbourne housing conference yesterday to expect worse and to recognise that buyers were getting value for money.

Prices would climb further because the global economy was growing again and because Australia had entered ''a new upswing'' that would extend its record 18 years of continuous economic expansion.

This man is a complete and utter fool!

To see this, first read this article yet more time again.

Yeah, they are "inflating" but the price momentum has shifted to commodities. Anybody who can't eat will dump the house to get food in the craw! Heck, they will take just about anything in the craw just to break even.

In all fairness, the EE is willing to buy the fact that Australia and Canada will be a non-proportionate beneficiary of a commodities boom. Assuming there is one. Which there won't be because we're in a deflationary collapse.

Lawd, what fools these mortals be!