The global economy views what happens in Australia in the same manner that the EU, US, Russia and Iran all view the Kurds and other ordinary Syrians. EXPENDIBLE
Concerning prime real estate we should always remember what old school university lecturers used to say. " there is no shame in being bankrupt .... only in being owed money by a bankrupt".
My guess is that underwater mortgagees will end up RENTING from STUCK mortgagors who will do anything to keep houses occupied during dire economic times.
Australian housing bubbles may significantly magnify any global "correction" into local "collapses" but not in all areas or sectors. Innovative companies with something real to offer to the global market will always do well as may selected mining sectors, agriculture, education and tourism IMHO.
