to put it simply.We had a credit boom.After the tech crash in...

to put it simply.

We had a credit boom.

After the tech crash in 2000,then 9/11, the Feds dropped interest rates to the lowest level in years.

1%.

This set off a world wide boom.

Especially housing.

The credit boom has collapsed in most of the world.

The housing boom has collapsed in most of the world.

Here in Australia the credit boom has ended.

All the mortgage originators are slowly going broke or closing down.

I think it is fair to say the housing boom is going to go bust here as well.

The days of the liar loans and low doc loans are finished.

People have to properly qualify for loans these days and not many can.

The argument is whether the Feds can engineer inflation ( print money) to stave off a deflationary collapse.

I along with most of the writers mentioned earlier think the task is beyond them.

We will know soon enough.

The reserve bank is starting to panic.

And lastly the sharemarket is certainly telling us something(30%) crash in little over 6 months.

Read them tea leaves.