You may not know it but around 20% of the home loan market has just collapsed - the securitisation market. The banks are moving into the space and, as a result, rationing credit elsewhere. Below the fold is an op ed in the Age about it.  It introduces a theme you'll probably be seeing a little more of from me.

In a paper I published in 1997 (I think it was) I argued that while competitive neutrality was a good thing, it was possible to have too much of it - at least where it stopped us making the best possible use of the specific qualities of the public sector.  But an alternative and in many cases ultimately more compelling principle is the desirability of making gains through trade. There are some things the public sector does better than the private sector, and it should be able to do them - prudently and within appropriate institutional frameworks.  This column outlines one.  I will outline some others if and when I get the time.

In the world of information governance and a fair go for the individual in dealings with business and government, how has it felt this month?

Who do you get from business -- which captain of industry -- to enlighten us about the budget?

Here’s proof positive of the malaise that besets our once-clever country. In the lead-up to the budget last Monday, ABC radio’s “The World Today” interviewed just one senior business identity for their view on what the economy needed from the government. It was Gerry Harvey.

In a progressive, innovative, competitive country – like Malaysia, Singapore, Taiwan, Ireland or Finland perhaps – you’d expect to hear from CEOs in smart, export-oriented industries, such as biotech, energy, IT or communications. But in Australia, the most influential magnate we have is a consumer goods retailer. Isn't it really pathetic that a country's economy can be so dominated by the retail sector? No wonder the chief economic policy lever in Australia is the blunt instrument of interest rates.

And to add insult to injury for those of us who wish we were cleverer, when interest rates are hiked to slow things down, the Gerry Harveys of the world proudly proclaim it's not making any difference to them. Nope, sales just keep on keep rising!