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The government’s move to trash lending rules during a recession is a recipe for disaster – Sydney Morning Herald

It was pitched as an ‘adrenalin shot into the economy’ but the Morrison government’s decision to trash responsible lending laws could spell trouble.

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At the heart of the backflip, led by Treasurer Josh Frydenberg, is the ideology of caveat emptor, or buyer beware. It is the belief that light-touch regulation works best and that banks and non-banks will do the right thing, leaving the onus on customers to make sure that they do.
But these laws on credit protection were introduced for a reason: the global financial crisis. Irresponsible lending played a massive role in the subprime debt crisis that tore economies apart.
Treasurer Josh Frydenb…

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