Deleveraging Continues Apace

ABS Lending Finance release today for Jan -Feb 2012 isn’t terribly encouraging. Personal finance commitments down. Owner-occupied housing finance commitments down. Commercial finance commitments down. And it’s not just due to standard post Christmas paydowns: seasonally adjusted figures down as well.

Got to get those ‘animal spirits’ cooking again. The Federal Government has clearly done everything it could to reduce regulation, reduce sovereign risk, inspire confidence, wind back the public sector footprint, encourage employment by reducing employment risk, encourage startups by reducing red/green/purple* tape…

/sarc

*purple tape: my term for quasi-religious, moralising regulation. Strong cross-over with green tape.

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