Not so long ago, the MB boys were bringing out bundles of bear-gasms as they predicted a plummet off the mortgage repayment cliff…
Gaily the guys gushed:
The mortgage repayment “cliff”, alongside tightening credit availability, is a clear downside risk for Australia’s property market. Easy credit was behind much of the meteoric rise in Australian property values. Therefore, any contraction of credit and/or forced sales will necessarily weigh on the market.
Of course, this was very misguided, wishful thinking, founded on a complete misunderstanding of the EZFKA.
…naturally, the wishfulness of this thinking was immediately pointed out by someone who does understand the EZFKA, and how the EZFKA ‘takes care of business’:
As usual, all we’ve had to do is sit back and wait a while for the MB blokes to catch up and catch on, and yesterday we finally had our admission of defeat:
yes, yes, they yelped:
Overall, deferred mortgages and forced sales no longer present a systemic threat to the Australian property market or economy.
No, of course they don’t and they never did!
Peachy Post Preview: there is lots of material in the MB back catalogue to write about…maybe some day soon I’ll write about this one… or perhaps we can have a guest post. Maybe Kiwi Hughey could do one?