Heading down, page-251

I'm not sure I've read any main stream media in 3-4 years .

it's pretty simple formula , poor credit risk management due to under estimating household expenses , over issuance of interest only loans , flawed reliance on dynamic LVRs causing risk creep across the loan book .

this causes a re risk of the last 5 years loan book pushing 50+% of the book into non prime / sub prime

resets become problematic because LVR are impacted by falling values and household expense resets

valuation falls accelerated by loss of foreign buyer demand which represent 20-25% demand over the last 5 years

massive Inventories comIng onlo the market to satIsfy vanIshed demand (see above)

creatIng a self feedIng credIt contractIon

creatIng a fall In da approvals , housIng starts

whIch feeds Into unemployment

whIch feeds Into delinquency

whIch created a negatIve feedback loop go back to the start above

all before chIna begIns to slash commodIty usage

Lets come back here In 12 months shall we ?