real estate volumes collapse... , page-37

Hi kingy

I read last year that the Commonwealth Bank only had to have 16% of their loans fail to send the CBA bankrupt.

Now obviously the government will not let this happen but it is only a small proportion of bad debts to affect the whole economic system

Now as to your statistics, these only show historical data and only show what has happened not what will happen.

For instance,I have friends, both work, good workers good jobs, good income, but it is all spent, nights out, boats, cars, motor bike, holidays in Fiji, all spent, sure they have no debts to speak of but there is also no money in the bank.

This couple is not unusual, there are many of this type of people.

They do not show up on your data but if one of them looses their job there is a very short time before they fault on their mortgage.

Australians are well known for their tendency to live on credit.

You have to listen to the people around you and remember look for 10% to 15%, and if you get to that figure, panic.