Quote:
Originally Posted by zipping
If that's the case why isn't the US going through a housing boom? After all they have been at zero interest rates for a long period and actively pushing as much credit as they can into their economy (to prop it up). ...
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Isn't the US system different? Default (unable to pay) the mortgage and you simply hand in the keys to the bank and walk away, then the bank wears the consequences of reselling to clear the debt. In strayla the buck stops with the purchaser, not the bank, so no one ever defaults unless it's absolutely impossible. Also the reason no one ever wants to see the market drop, as they may have to sell and realise a loss.
How's the Aussie bank profits and share prices been these past few decades
It's a RORT.
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