Australia keeps pumping house prices, while Trump pursues ‘state-run capitalism’ -- ‘The largest driver of Australia’s household wealth is real estate, accounting for 53 per cent of the total compared to just 30 per cent in the United States’: Rabobank macro strategist | AI News Digest
Ben Picton, a macro strategist at Rabobank, critiques Australia's housing policies, highlighting that real estate constitutes 53% of household wealth, raising concerns about its sustainability. He draws parallels with the Trump administration's economic strategies in the U.S., suggesting a shift towards state-run capitalism. Picton argues that the Australian government's recent expansion of the Home Guarantee Scheme may exacerbate housing market speculation rather than address underlying issues. He emphasizes the need for a reevaluation of economic strategies in both countries, advocating for a focus on real production over speculative wealth. The commentary reflects a growing concern about the long-term implications of current economic policies in Australia and the U.S.
