Housing crash, page-240

1. You believe that Central Banks & western govts. want to "derisk" their extreme indebtidness by "inflating the debt away"- ie the govt. vast repayments to their creditors will be made in full: but because of severe inflation, the real value/purchasing power of these repayments will be much less.

However, I have these queries:-

a. virtually all economists are saying inflation is likley to be very low for many, or 10+ years. Or we might be entering a long period of deflation/falling prices!
Thus, your theory of govts & CB' secretly encouraging inflation to ACTUALLY occur is very unlikley.

b. You said " I wouldn't chase property now"; & you also said Central Banks "will buy MBS (Mortgage Backed Securities), no matter how junky".
Why would CB's do this, since a large property price fall is very likely in this major recession? Govts. would incur more, unrefundable debt?

2. What are your views on private credit providers etc (not banks- but peer-to-peer lenders/syndicates/La Trobe Finance/Balmain Finance etc)?
ie who lend with first mortgage security only on one property, backed by Independent Sworn Valuations & various Director/company guarantees etc., with low (below 60%) loan to valuation ratios against property?

In your scenarios, are these creditors likely to have their loans repaid in full?
Are you expecting Australian metro property prices to fall more than 40% (so, with a 60% LVR, the creditors may not be repaid in full)?