ABA letter to the editor, Australian Financial Review, 4 March 2016
It was bewildering to read the contradiction in reporting of Australia’s housing market in the Australian Financial Review, 24 February. Deep in the financial services section were credible stories on how banks – under the watchful eye of regulators – are demonstrating responsible lending practices, (‘Banks tighten reins on housing lending’, page 16), but how some hedge funds are trying to short the banks by creating panic about a housing ‘bubble’, (‘Ignore hedge funds, banks still a buy’, page 17). Then the front page story, ‘Uncovering the big Aussie short’, talks up one of those very hedge fund’s outrageous claims. It is not unusual to hear hedge funds, backed by foreign commentators with limited knowledge of Australian conditions, predict disaster for the housing market. These forecasts have been made for years. They are no more realistic now than they ever have been.
CEO, Australian Bankers' Association