Terry McCrann: Richard Di Natale just clueless as the loan arranger

PEOPLE’S Bank? People’s Bankruptcy. In one stroke, the Greens have announced they are ­totally unfit to have any influence at any time on any ­government policy involving money, writes Terry McCrann.

PEOPLE’S Bank? People’s Bankruptcy.

In one stroke, the Greens have announced they are ­totally unfit to have any influence at any time on any ­government policy involving money.

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That is: on everything.

Not unless your ambition is to turn Australia into Hugo Chavez’s Venezuela in the shortest possible time frame.

The People’s Bank — a bad idea at any time — proposal is just embarrassingly inept. It shows that the Greens don’t just hate our private enterprise economy and financial system, but worse, they haven’t a clue at how things actually work at the most basic level.

They would turn the Reserve Bank into a financial soup kitchen, doling out (up to) $500,000 in low-interest loans to most homebuyers.

Greens Leader Dr Richard Di Natale’s People’s Bank proposal is just embarrassingly inept. Picture: AAP

Reserve Bank of Australia governor Philip Lowe. Picture: AAP

They obviously don’t have the slightest idea how that would send property prices soaring; in the process pouring even more money into the hands of existing property owners and making it even harder for homebuyers, even with their cheap RBA loan.

They believe that the banks will happily “top up” the RBA loan with a second one, but at the same interest rate they charge on their prime loans now.

The Greens obviously have not heard of first and second mortgages and the way a borrower has to pay a much higher rate for a riskier second mortgage.

The real worry in the Greens’ insanity is that after the next election, they could actually be in a de facto coalition with a Shorten Labor government.

Be afraid. Be really afraid.