Nothing supports your point of view but some cheap journalism at the ABC that is quite purile , the banks income streams are proving you wrong. 1990 / 91 was worse from a negative equity point of view and all that does is that the owners will stay put and weather the storm. There are always a few bargains in the cheaper areas. This time things are infinitely better because of the MAJORITY of homeowners coming off incredible price surges. Nearly 4 years since GFC and places like WA are red hot in sales and rents rocketing.
Sorry mate , it is not as dire as you try and paint out and the cases highlighted by the ABC are more as a result of the shenanigans of investment banking type of loans that have sucked in many aspirants and now want to be baled out.Yes they were greedy and don't want to pay the price.
So many who borrowed against their equity and got in early have done very well. The gullible got caught and that is hardly sub prime but rather naivety which you can't inocculate against.
