you missed my point, Australias reliance on housing industry(& its peripheries ) for job creation may not be far behind spain. Unemployement can be after effect of housing crash not the cause.
Basel three will mandate our banks to tighten credit creation(recapitalize?) so bank will be strict in lending, also world wide interest rate will be on rise(euro/us/emerging eco) which will put pressure on our wholesale funding source ie costlier credit(our banks rely on external source for 25% of thier funding simply because we dont have enough domestic savings).
I don't have a clue how far housing can crash, but Debt driven boom requires credit growing at ever increasing rate to sustain, absence of which results in crash.
