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Sorry the D&Gs took it all already. Come back next time.

Now we have the 'responsible lending' laws so it is harder for things to get out of control in terms of residential lending. Lo doc/No doc loans have always been a very small part of the market for self-employed borrowers who can't prove income - a PAYG worker can't get a lo doc loan in almost...

Whereas in Australia it's 'I won't build it until I have pre-sold all of my units'

Even if Dent is right and unemployment goes up - the guys who can afford beachfront properties aren't the ones who are going to lose their jobs...the first ones to lose their jobs are the people who live in middle-class suburbia.

There's no bubble in Vic!

And those same people at BHP thought that it was a good idea to buy RIO at $150 per share....go figure

Exactly. It's just the domino effect - only this time it is led by consumers. If rates go up, consumers spend less, businesses make less money and start firing people etc. It will become a viscious cycle

Exactly. If you're BHP and you're making $22bn per year, would you really care about a 0.25%, or even a 1% increase in interest rates? Mining companies historically have very low levels of debt because they always get equity raisings from the stock market. That is the dilemma that the RBA faces...