Are you seriously dumb enough to imply that the stock market follows rationale or mimics economic indicators?!!?!? I think you may have just uttered one of the dumbest things on this board. I never said it was the end of the world...but it's a big deal that could affect the stock market. What's your point? It is. You were dumb enough to compare the Australian housing situation to that in America...that's a fucking joke. My apartment building here in Manhattan is worth half of the total real estate value in Adelaide.(That's an exaggeration stupid, but probably not too far off.) Yeah, good comparison you made shit for brains.
From Noland weekly article: "Refi applications fell 3% for the week, although dollar volume was up 40.4% from a year earlier." I think that dollar volume is people paying off home equity loans which will further erode the income stream angle of these products. The second worst thing other than not getting paid is getting paid too soon. This caused lender failures and investor troubles in the past and could be the next shoe to drop. HF and IB children claim they have it modeled - we'll see. http://www.prudentbear.com/articles/show/2064