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The trouble with the internet is that it allows any cowboy with a keyboard to publish ... and that's fine, but volume of posts full of unqualified opinions doesnt really equate to any value being added. Now TMNT, I am a subject matter expert in NRAS, and in residential mortgage lending. I...

Cheers Red. My point thought wasn't related to asset write downs- I was making the point that unrealised profits aren't the same as a realised losses, so the argument made previously that "a loss is a loss" was inaccurate. Whether realised losses be asset devaluation/write downs or cash...

Oh get a sense of humour . Tongue firmly in cheek. Will take it down and leave the sarcasm for another day.

Of course you are correct, and equity + cash flow are critical - this is something I believe very strongly, but your post read " if market turns and you are highly LVR you could be in serious pain" and I was responding directly to that. Only cash flow will save you if markets turn and you...

You are only in pain if you have a portfolio that is running cash flow negative, and a recession might see rates fall to buffer that partially, anyway. But really, a paper loss of equity is irrelevant if you aren't selling and the portfolio has the necessary cash flow to hold through a trough.