Here is piece in the Australian media from a writer I have a of time for - Adam Carr at Business Spectator.
Carr says the sharp rebound in consumer confidence is great news but is not exactly what the RBA wants to see.
the RBA is already aware that consumer spending is rising at a faster pace than the "current growth in real household income". So, as it is, consumers are already borrowing against future income: slowly building up the very imbalances the RBA is seeking to avoid.
Carr goes on to discuss house price acceleration and the dangers this entails.
- Surge in confidence increases the odds that house price growth will remain robust, and will likely spread.
The chance that macroprudential regulations "can solve the countries 'ills' by preventing imbalances," are "very low. The nation abandoned heavy regulation for a reason - it doesn't work"
The article is ungated and well worth a read: The RBA's great fear
