australia's housing bubble deflating, page-41

pwinne...you've mentioned this concept
"if it falls 40% its disaster for all" a few times before and finaly when asked to elaborate as to what is it that will really happen...you dont know ? ? ?

why are you bringing it up then ?

...by assuming that it would be 'bad' for the economy are you claiming that whole aussie economy depends on building duplexes around the same aussie 'suburbia' ???

if prices go down building/renovations stops ?

you are forgetting.....banks would've FALLEN ALREADY if government didn't put its GUARANTEE on the money...so...whats to stop it guaranteeing the rest of the debt?

again...building of new dwellings is almost at record lows and yet employment is almost at record high...obviously construction industry is not THE ONLY ONE industry australia has!

myproblem...time and time again we are coming back to the same question and time and time again some don't understand...its becoming rather tedious!

dr.keen has merely pointed that prices are 40% HIGHER THAN LONG TERM AVERAGE ! ! !

and because price ALWAYS sticks around 'long term average' logical conclusion is that, after a period or not, prices WILL RETURN close to LONG TERM AVERAGE !

and if you dont know how come it didn't happen through GFC...you are not ready to hold this conversation !
...and i will leave that to be 'your problem' !