TCIboss, once credit demand and supply dries up it's all over.
It doesn't matter if Steve Keen was off the mark by 2 years or that I go the peak wrong by 3 months.
What is happening (credit crunch after a ridiculously prolonged and inflated bubble) has no precedence in recent Australian economic history.
The banks will soon ration lending to mortgages (not because of funding problems but because it will try to ring fell the crash around it's books).
If it doesn't start firing people enmasses (honestly 1000 from ANZ in the next 6 months is just a tip of the iceberg).
Once bad debt rises steeply, the market will be savage and the hedge funds will short them like there is no tomorrow.
You will find that lending to investors will be cut to drips and anything apart from HIGH EQUITY owner occupier borrowers will be shown the doors.
In this climate, one thing is certain. The bargain lady will tell others to "IGNORE THEM" as if they aren't even toilet trained all the while she tries to parachute out.
