Labor's view of Australia - a nation of shopkeepers?

Housing

The Labor Musical Trio has referred to a resurgence of first homebuyers as a sign of confidence and compared that with what is happening in the US. But there is no comparison. The rise in the US first time homebuyers is due to house prices plummeting by one third and more, and those with savings are cashing in.

US first-time buyers can no longer secure loans on 3.5 per cent deposit insured by the Federal Housing Administration. New conditions require verification of two years minimum employment history. Borrowings are limited to around 31 per cent to 43 per cent of income depending on other debt.

In Australia, house prices are still too high relative to earnings and the spectre of unemployment plays a crucial role in bank lending. Foreclosures are steadily rising and lending restricted.

Despite acknowledging a substantial rise in unemployment, the Labour Musical Trio suggests that events in the US are "not seen as a risk in Australia".

Rising unemployment in risk-related industries in Australia will in turn restrict lending to those employed in those industries as well as the industries themselves.

For the Labor Trio

Australians can do without the rhetoric, waffling and political expediency. Australia needs a reality check and a clear crisis management plan.

Mr Rudd, forget about saving the world singlehandedly, focus on Australia.

Forget the all singing and all dancing show. Define the real priorities and get on with it. There will be pain, and that will include electoral pain, but nothing in comparison to what will happen without positive, decisive, and responsible action.