Bottomed?? Massive Divvy coming, page-20

Agreed there. It’s hard to get excited about the RC in the big picture. Looking at recent RC results, let’s face it if you can abuse the crap out of young boys and have essentially little to no repercussions, what are they going to do about some liar loans, or dodgy paperwork, or dodgy commissions? Pretty much sweet FA. The dirty laundry will be aired, the banks will say sorry, we won’t do it again and in twelve months time it will be business as usual. In the meantime players will play, and you can either try to take advantage of it or sit and ponder.

As for the housing market collapsing and bringing banks down with them, the banks are not that stupid. I know from dealing with them that they have become noticeably more selective with their lending over the last 5 years, and increasingly so over the last 2 years. Gone are the 100%+ LVR’s that you could “construct” often without mortgage insurance, and they are now even clamping down on the 80% LVR and looking at 70% in some postcodes. They are building an increasing buffer by lowering the LVR into their loans, should housing prices correct. As usual all IMO, of course.