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It would slow down the rate of foreclosures and forced sales. The more houses on the market that have to sell, the lower house prices would go. Supply and Demand, often found in a high school economics class.

How can your quotes be proven more accurate if we are not in 2011 yet? Me so confused....

australia - rates to be cut back to around 3.50% and to sit there for a while IMPO - although they could go up in the short term as the RBA steers while drunk, bu i expect them come down in 50bp blocks at a time if they do. There's the whole quote.