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Deltaberry you make a good point about the RBA having more room to move on rates. However I'm not too sure that the RBA has that much room to move on interest rates. When the US Fed started cutting in August 2007 in response to their housing crash, the US interest rate was 5.26 per cent. That...

Another reason why FHB areas are hit are they tend to be cheaper, less desirable areas. Typically in bubbles (not just housing bubbles, just bubbles), the subject of the bubble becomes to a certain extent commoditised. It is worth lots of money because it is an internet stock, and the ones in...

I think you are missing the whole point of the Fed report. They are discussing the situation *before* record unemployment i.e. the period when US employment was even better than Australian employment today and house prices started falling and defaults rising. At the time the Dallas Fed...

Talking about unemployment I found a 2007 paper by the Dallas Fed which says that one of the major mistakes that subprime lenders made was to assume that deliquencies will remain low as long as unemployment was low (bolding mine). http://dallasfed.org/research/eclett/2007/el0711.html I...