The housing Bubble ?????, page-4

About a third of our exports go to China. That trade will continue regardless of how overpriced capital city real estate has become or whether it collapses.

Real estate also holds up the debt used to fund the ASX and (much worse) the unaffordable life style expenditure that keeps JB, Hardly Normal and baristas busy.

Regardless, moderately higher interest rates will not bring the entire house of cards down ALTHOUGH a global trigger event will greatly increase the recovery period.

So what happens in the longer term? Humble pie for all BUT the end of the world is not nigh. Our wages maybe significantly less BUT sections of the economy will continue to prosper. For those on pensions there is no obligation to live in a Sydney or Melbourne empty nest either.

cheers