Hi CW I agree that all markets are different but it does not mean that we will not follow the same track.
I don't know your age bracket but I have seen 3 severe credit squeezes and they had a profound effect on the normal Australian family.
It is disputed here by the people with statistics but in Melbourne we had drops of 70% over a wide range of suburbs.
The next one will be worse when it comes due to the fact that we have a lot of volatility now which was absent previously.
Although in Australia the mortgage is on the person and not the property, for a ordinary family they do not have any margin for error and will walk away because they are unable to do anything else.
There are many people in this country who live a nice happy carefree life but look around and ask yourself who could I go to if I needed $10,000?
Most of them have no liquidity at all they live on the edge so when a bust comes it will be severe and it will emulate the USA
