If TheWord has any US-related investments, he has good reason to...

If TheWord has any US-related investments, he has good reason to be terrified by the US sub-prime debacle.

But to arrive at a view about ALZ's future by comparing the US sub-prime debacle with Australia's far more sedate housing price rise is like comparing oranges with apples.

Sure, a few Aussie investors in CDOs (based on what used to be called 'Junk Bonds' ) got their sub-prime fingers burnt - and it serves them right for ignoring 'Caveat Emptor' as regards investing in a place that elected a tax-cutting Texas dimwit who appointed a Mr Snow (job) to run the debt-burdened US Treasury!

Fact One: Thanks to the resources boom, Australia's federal debt not longer exists while US federal debt has zoomed.

Fact Two: Aussie house prices (and house sizes) have risen at a more sedate (and safer) than US house prices.

Back when Mr Snow (job) was running the US Treasury, he failed to douse wildly over-optimistic US expectations (by sub-prime mortgage and house buyers egged on by greedy mortgage and house brokers) that US house prices would keep on skyrocketing...



Billy-Bob: "We don't have to worry about low honeymoon interest rates ending in a couple of years."

Honeypie: "Why not Darling?"

Billy-Bob: "By then our house will be worth a fortune and we can re-finance it and live happily ever after.

Honeypie: "I can hardly wait to move into our very own McMansion!"

Several years later...



When all else fails...



... try group therapy.