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Haha, solid banter. FYI euro, nerding out here, but during 08/09 FY's, large Aussie construction companies (Multiplex, Lendlease I believe, etc) wrote down their balance sheet by doing asset revaluations on their large developments. Accounting standards make them do fair value adjustments...

Thanks MTR. Its just the way lending works. The above also highlights one of the main reasons why X-coll is so damaging - missed opportunities when you cant separate loans and securities.

Great thread! I think its definitely worth 'planning for the worst' and seeing how to manage 'recession risk'. MTR, great point about assessing the TIME cost. I think you may be referring to the lost equity that occurs when there's a recession in some markets and your property value falls...