Business
The government’s move to trash lending rules during a recession is a recipe for disaster – Sydney Morning Herald
It was pitched as an ‘adrenalin shot into the economy’ but the Morrison government’s decision to trash responsible lending laws could spell trouble.
At the heart of the backflip, led by Treasurer Josh Frydenberg, is the ideology of caveat emptor, or buyer beware. It is the belief that light-touch regulation works best and that banks and non-banks will do the right thing, leaving the onus on customers to make sure that they do.
But these laws on credit protection were introduced for a reason: the global financial crisis. Irresponsible lending played a massive role in the subprime debt crisis that tore economies apart.
Treasurer Josh Frydenb…
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