A hedge-fund manager and an economist have toured Sydney's western suburbs viewing housing developments and meeting mortgage brokers, and concluded there's a housing bubble. They reported meeting mortgage brokers who advised them to lie on loan application documents about the deposit for a house and about their income as these details were rarely checked by banks, reports the AFR. "The further west I went, the more irrational it felt. Lots and lots of supply and prices that bore no resemblance to construction cost and income of people around there," John Hempton, Bronte Capital's chief investment officer, told the AFR.