You lot don really believe that mortgage doom and gloom stuff do...

You lot don really believe that mortgage doom and gloom stuff do you? The people flogging that stuff are real estate agents and the mass media just happy to parrot it verbatim. They are trying to game congress into passing a housing relief bill, which could otherwise be known as a real estate agent relief bill. So volumes are down - that's hard luck for the realtors who depend on sales. House prices are up - that's what homeowners and consumers care about.

The property market has reverted to its regular mode of operation where its all about location, location and location. Yes there may be some second rate housing developments on the outskirts of third tier cities which may never be sold. Some regional banks and CDO holders have already taken the hit for these. But there's no sign of it spreading beyond this. NAB were trying to impress the market with their conservative approach to valuation and it will backfire.

XJO up 500 points minimum this week.