PHOTO: Bibbidi-bobbidi-boo – and our fairy godmother PM has waved his magic wand during the COVID pandemic. Picture: James Gourley/NCA NewsWire Source: News Corp Australia
Banks are chasing mortgage payments and economists say we’re “pretending” if we think everything’s OK. What’s next for our crumbling economy?
In the classic fairytale Cinderella, the fairy godmother turns Cinderella into a princess with her magic wand – but only until the clock strikes midnight.
In many ways Prime Minister Scott Morrison and the banking regulator APRA have acted like a fairy godmother for the nation’s mortgage and SME (small and medium enterprise) borrowers.
They’ve used their magical abilities to change otherwise concrete rules surrounding financial regulation and loan repayments, to make bad loans good and offer an unprecedented number of loan deferrals.
But like the story of Cinderella, the magical illusion of low mortgage arrears and good times underpinned by government support will fade when the clock strikes midnight.
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