What a joke our government is. Whack Westpac over the head again because it has been a “very naughty boy” by banning it from the government’s first home buyer deposit scheme. While it might look good in front of voters to bash a bank, what they don’t realize is Westpac actually wins.
Westpac should count it’s blessings. Honestly. Piling first home buyers in at the top of the property bubble is hardly the best scheme for prudent risk management. Given the banks haven’t been granted the ability to properly risk adjust for these buyers, it works in Westpac’s favour to be booted from this ridiculous plan.
Here is the deal. Although ‘owning’ one’s own home has always been part of the Game of Life in Australia, at what point will our law makers look to failure in policy as a reason kids can’t join the property ladder instead of trying to grant their wish and saddle them with negative equity right around the corner? Perhaps address productivity, tax reform and unnecessary red tape as opposed to bash a bank, tighten the regulatory noose and eject them from the sandpit by subsidizing a future car wreck.
In reality the scope of business Westpac may have made from this scheme is likely to be so small it would be a rounding error to the group. Yet more virtue signaling from our political class. Utter. Waste. Of. Time.