spanked!, page-43

the threads of your brilliance are unravelling SP. maybe I was too generous.

Cheap finance means cheap housing with an oversupply in the housing availablity. Your theory is exactly the sameas the feds - just keep throwing money at it to try and fix it. Managing this properly is why the Australian property market has stayed bouyed. The instrument is interest rates that contains this aspect of the monetary policy, and flows into a balanced housing market.

Controlled finance means competitive housing prices as long as their is not too much housing stock being sold. In the US, they've shot themselves in the foot.

The repo's, reverse repo's and novating debt within the US banking system is out of control and has housing in a pawn state of affairs. They call it 'jingle mail' or something like that. You walk out and post the keys back (hence the jingle).

The repo companies want to turnover stock at any price because they have no liability to the loss, and finance banks are winding up because of these (any other) unrecovered losses). The critical mass of overgeared/unbacked finance was exceeded several years ago - and what we see today is the fallout.