Assuming you're right, then 10% Crash will mean, * House Prices fall 10%; personal wealth falls same... * Banks' Mortgage Assets in Balance Sheet, now est. at $1.8 Trillion, will = $1.62 Trillion... * Mortgage Defaults will rise by disproportionate number because (a) LVR smashed (b) Masses of Interest Only switching to Interest & principal repayments (c) JobKeeper payments only covers about 25% of household expenditure (d) 33% of Aussies have leas than $5,000 in the bank! (e) 25% of Aussies have less than $1,000 in the bank!
PS: Household Debt = 200% of Income....
Net Result: $1.8 Trillion become $1.62 Trillion become likely $1.44 Trillion
Assuming I'm right, then disaster becomes reality!
WBC Price at posting:
$15.89 Sentiment: None Disclosure: Not Held
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