Unemployment up to 5.3% (10 month high)

[Deltaberry]

I have no doubt that when the Eurozone blows up the first thing the Governmetn will do is heavily restrict short selling just as they did in GFC I.

The first thing that will happen is I will vote this sad excuse of a government out of office and obliterate the independents from the political arena for eternity.

 

[VYBerlinaV8]

Australia is NOT THE US

Some glearing differences:
*non-recourse vs recourse loans
* % of properties built to 'flip'
*% of properties financed as prime vs subprime
*increase in supply of properties prior to GFC

We are not comparing apples with apples.

Nail on the head with this one. There are plenty of differences, and these have contributed to our current situation.

We all know we have some rocky times ahead, but I don't see things getting anywhere near as bad as the US.

Also, it will be interesting to see how defaults and foreclosures play out over the next year, as from now until then roughly represents the 2-3 years after commencement of loans when FHBs are statistically most vulnerable. If we can get through the next 18 months, things may not be so bad.

Time will tell.

 

[Aaron_C]

Once you add the carbon tax into the mix I'm sure defaults will go up. People can stop spending money on clothes/going out to eat but everyone needs electricity, gas and petrol no matter where you live.