Michael Pascoe writes:

It’s the job of the RBA to talk common sense
and warn of disasters in the hope the Martin Place
mandarins scare some of the populace into avoiding irrational exuberance. They were at it again yesterday in warning financial markets of their myopia
in pricing risk during this long, golden summer of investment.

As usual, most players will just ignore the
RBA though until it threatens to reach for its interest rate lever. Canny
investors though might join the dots between the RBA story and another one
about a large and very successful private property investor deciding to
liquidate his portfolio.

Lang Walker
is flogging off his multi-billion dollar property empire and will probably be
knocked over in the rush of property trusts wanting to buy. But as the SMH observes:

Marc Besen, Ralph Sarich and Kevin Seymour are among
other property operators who recently revealed they are offloading their
shopping centres and office towers at premium prices to take advantage of the
strongest commercial market in nearly 20 years.

Australian property is the most securitised
in the world. Maybe the big and successful private property investors are
taking notice of the RBA even if the fee factories are not.

Peter Fray

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