write a critical reading report in max 500 words on The stretched rubber band: banks, houses, debt, and vulnerability in Australia Tom Conley. ABSTRACT This article analyses the development of residential capitalism and financialization in Australia. It outlines the series of economic vulnerabilities developing in the financial system, centered on household debt and inflated property markets. It then analyses why policy-makers have done so little to restrict the growth of household debt and house prices. I argue that financial policy-makers have underestimated the financial vulnerabilities building up in Australia as evidenced by the slow take-up of macroprudential policies. I outline four reasons: first, the excellent profit performance of the major banks; second, the policy predilection for idealized economic liberal regulation; third, the development of a politico-housing complex; and, finally, the growing role of household debt in ameliorating distributional conflict by underpinning growth.