The Reserve Bank has failed us

Earlier this month, former Treasurer Peter Costello stated the bleeding obvious when he warned “ultra-low interest rates risk creating the next financial crisis if central banks keep borrowing costs at record lows for longer than necessary”. 

Costello continued:

I understand what’s going on, that we’re trying to reassure everybody that monetary policy and fiscal policy will be supportive for as long as it is needed. But I think the critical thing at the moment for central banks and governments is to think of the exit strategy.”, 

Because if we don’t have an exit strategy, we will be building up the next financial crisis, and you know what the next financial crisis will be? It will be asset bubbles. 

Well,…