"we know property will NOT stagnate because we know in 2007 when home loans hit 10% property went into free fall, falling 15% in around 9 months until the emergency rate was applied."
Yep sure whatever you say BG - there was certainly no drops in prices in the areas I look at around that time.
"And we all know home loans are headed back to 10%."
No we don't know that, it is a possibility but just because you say so does not make it a fact!
