Hockey too

For so many months I have been waiting for the Opposition to start stating the alternative side of the stimulus debate without resorting to simplistic arguments or convoluted ones with clear inconsistencies. Well, I was very pleased to read this account of a recent CEDA speech by Joe Hockey. Not only did he articulate a consistent argument against current deficit spending he wasn’t afraid to admit past mis-steps in order to present that case. I don’t agree with it but it raises the quality of the debate and that is a good thing.

I was equally pleased to see Hockey adopting the notion put forward by Chris Joye that the government’s guarantee should be extended to mortgage-backed securities. This is an important but difficult to argue issue that hits directly on concerns about banking competition. Early days yet but it bodes well. Hopefully, the rest of the Opposition can follow this example and restore its credibility on climate change policy as an economic rather than a populist political issue.

2 thoughts on “Hockey too”

  1. Government guarantee for MBS, sounds like a splendid idea, lets put the taxpayers on the hook for any future falls in the most expensive housing market in the world. Does anyone remember why the GFC started it was the TOXIC MBS in the shadow banking system. Have we learnt nothing. I suppose those in favour will say but its different in Australia, phoey, history is littered with its different this time, there is no risk.
    I dont care what people spend their money on but leave my tax dollars only. Has CJ ever heard of LTCM, that seemed like a good idea with limited risk, pity it wasn’t.

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  2. Yes, heard about Joe Hockey’s candour too, on radio I think.  I can see myself voting for the Coalition if Joe Hockey were to lead it, and if he manages to pull the rest of the Coalition to his direction.
    I do sympathise with politicians who genuinely care about Australia, but have to deal with a media (and populace) that care only about creating controversies for the sake of it.  More people should speak up for politicians who are prepared not to be bullied by the media and idealogues (from both sides of politics).

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