The time has come to abolish negative gearing on investments both stock and property.
Too much dead money is being gambled by people with no real understanding of markets or gearing, resulting in catastrophic losses during the gfc.
These losses will only be magnified as a new cohort of mugs are enticed by the banks to go long on shares and derivatives in the second leg of this bear market.
Many investors are withholding housing stock from young couples by artificially inflating the price of housing through the use of negative gearing.
There is no way that houses are worth 7 to 9 times times average yearly earnings. The longtime average is closer to 3 or 4 times.
Let us hope that Julia Gillard or Tony Abbott have the balls or ovaries to abolish this festering inequality in our financial system, whichever one of them gets in to government after the election.