"This will cause many Peoples Houses to be Repossessed, As they are not worth as much as People owe on their Loan."
no, I would argue that will probably not happen - at least to a large degree
not just with a 10% price drop
1. we have history there --------- banks in the past - were smart enough not to foreclose when people couldn't pay their mortgages ----------- the banks knew that if they did - they would flood the market with houses and turn a downturn into a total catastrophe - and, destroy themselves
2. "As they are not worth as much as People owe on their Loan." - this is Australia, not America - we do not and will not have a jingle keys reaction - the reason why it's different is that in Australia - your bad debts and defaults follow you - not like in the US where in GFC and lead up - you could hand the keys in and walk away --------- in Oz - doesn't work.
the dangers and differences are this time -----------
1. that bank funding is different to last time -- I haven't seen figures for ages - but, several years ago - bank loaning changed from depositors funds to funding from banks getting money from overseas - I don't know what it's like atm - but, if that still stands - then, that puts a very very very different light on the situation in comparison to earlier housing downturns from decades past - so, we may well have a vastly different story
2. coming off a record low interest base - that's a given ------- and a bounce up from interest rates lows of the lowest in ???? whatever the hell it is 1,500 years or 5000 years ----------man, I call that uncharted territory
3. we already have a bubble to rival the tulips almost - and in a basic commodity - you can live without tulips - you can't live without shelter
4. 10% ----------- maybe - maybe we might multiply that a few times as well - other nations had massive falls - there's no golden rule that says Australia won't
as far as both the majors election promises - both are feeble tragic bandaids that will do as much or more harm than good --------------- not real solutions - and, why is that?
because this is a real crisis ------------ even Covid looks like a doddle in comparison.
