Ensuring Liquidity in Residential Mortgage Backed Securities

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This website is devoted to issues and policy proposals facing the Australian home mortgage lending industry. It focuses on the debate that has emerged since the publication of our original “AussieMac” paper by the Centre for Ideas and The Economy on the 26th of March 2008.

While the name is now an emotive one, AussieMac is simply a euphemism for the need for governments to irregularly intervene in major economic markets and guarantee the public goods of a minimum level of liquidity and price discovery when these markets fail. Consequently, the AussieMac proposal could be operationalised through a variety of channels, including the Treasury's Australian Office of Financial Management, the RBA, or some new independent entity. Indeed, in September and October 2008, Treasurer Wayne Swan announced a $8 billion intervention in the market.

Selected Media:

  1. •Christopher Joye and Joshua Gans, “Keep non-bank lenders afloat,” The Australian, 2 October 2008.

  2. •Sam Wylie, “Fannie, Freddie not failures,” Australian Financial Review, 21 August 2008.

  3. •Alan Kohler, Business Spectator (23 July 2008)

  4. •Australian Broker (7 May 2008)

  5. •Nicholas Gruen, “Not all government intervention is bad,” The Age, 13 May 2008.

  6. •Christopher Joye and Joshua Gans, “Facilitating the blooming of liquidity,” The Age, 10 April 2008.