Steve Keen, Phil Dobbie – How to burst the housing bubble

House prices in Australia continue to rise. According to Domain’s House Price Index, prices in Sydney have risen by a third in the last year, to a median value of $1.6 million. Housing affordability has never been a bigger issue, but how do you bring prices down when two thirds of the population are owner occupiers. That’s a question Phil Dobbie puts to Steve Keen, as he explains his two-pronged approach to containing house prices – first, limiting the value of loans to a multiple of the rental value of a property and, secondly, a big reset, which sees debt repaid and bonds issued to those who don’t currently own a property. Would it work, and could it be explained in a way that the voting population will understand?

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