more job losses = housing crash, page-2

The Australian residential real estate market is the biggest ponzi scheme in the history of the world, aided and abetted by the Australian banks, whose greed knows no bounds.

As sure as night follows day, and as sure as I have nose on my face, that ponzi scheme will collapse bringing with it a devastation the likes of which have never been seen.

The most vulnerable, the invariably young and new buyers with the least equity in their homes will be the hardest hit. The second hardest hit will be the baby boomers with their investment properties, who have all thought that they have created investment nirvana by gearing up to the hilt and letting tenants pay the mortgage.

As interest rates begin to rise as they must, and the cycle turns, there will be blood on the streets. That will come at the worst time as many lose their job and are unable to pay current inflated rents.

The banks' share price too will collapse as earnings evaporate.

A scary scenario awaits.