You may be right about the unit market in Queensland, however, i think your doomsday scenario of a collapse of the banking system, mass defaults, and general carnage across the boards is misplaced.
I was a advocate of such a scenario a couple of years ago (often exagerating for good effect...), but have rethought the probabilites of such an event unfolding.
It is not likely imo because; 1. The cash rate in Australia has a lot of room to move considerably lower if need be, 2. Governments and reserve banks throughout time always take the easy route when faced with fork in the road, 3. Inflation is heating up around the globe. Inflation will be fostered, encouraged, and cheered behind closed doors by the RBA, Federal Reserve, ECB, et al. Inflation is the answer as it naws away at the REAL debt burden.
People have found reason to call for a systematic collapse atleast twice ever decade since the great depression in the 1930s. Since that time there has been nothing even closely approaching the level of financial implosion and despair that occured during that period, and it is unlikely anything similar will reoccur until the generation that lived through it in some way are no longer in positions of influence in society.
God bless inflation! The penicillin of the 21st century...
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