(Episode 282; 16 minutes 07) This week six economists (Christopher Joye, Joshua Gans, Stephen King, John Quiggin, Sam Wylie and Nicholas Gruen) wrote to Treasurer Wayne Swan calling for an inquiry into the regulatory architecture of Australia’s financial system.
Non-bank lenders are being forced out of the mortgage market while the Big Four banks, supported by government guarantees, now attract 92% of all new home loans. Is this good for the consumer or for the economy? What happens when the next global financial crisis hits?
On today’s BTalk Australia Phil Dobbie talks to Nicholas Gruen about the letter and one alternative to help level the playing field in the home loan market — the establishment of a People’s Bank.
Read the letter in Nicholas Gruen’s Club Troppo blog. Add your thoughts in the Talkback section at the end of this post.
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