Carrington Clarke

So the example they used in the documents was instead of growing at 6%, they would grow at 4% now.

And they say that's a modest change.

And it means that it'll be slightly more affordable for first home buyers to get into the market.

And this is where we get this 75,000

properties will basically be transferred from investors to first home buyers.

Now, I think first of all, the example of, well, you can understand that people wouldn't get too upset if house prices are growing at 4% instead of 6%.

I think it gets a more complicated picture if you're in a downturn and instead of falling by 5%, it falls by 7%, for example.

But I think people are concerned that there is actually maybe more speculation going in the property market than even the treasury modeling allows for.

And as you say, the psychology is so important here.

And that if people have been, and we saw the data out yesterday from the ABS showing an increasing share of investors in that market taking out home loans, they've been piling back in into housing in recent years, whether or not there's going to be a major shift and that's going to make it more difficult for the Commonwealth Bank.

It should also be pointed out that there was this update about its own performance, more provisioning for bad debts.

It was a pretty gloomy view of the economy, an increasingly gloomy view given that we have had a continued interruption of the supply of oil because the Strait of Hormuz is still closed.

This is a stalemate that is not helping the global economy and it is having an impact here in Australia.

And so those things together, I think, was part of it.

And of course, it's just the fact that, as you say, the Commonwealth Bank has been on a tear, including this only takes us back to what it was about three months ago.

So this is a company that had a lot of optimism built into its share price.

And I think when that optimism was pricked slightly, it meant that it had a long way to fall.

Yeah, it's been fascinating to see how this played out.

And yes, I think the government would have been unhappy that the Commonwealth Bank decided to update the day after the budget, and maybe there'll be a timing issue.

change for future years.