As long as all margins are above 20 %, and the housing stock is "only" 20 % overvalued, it won't be the banks who get to eat the fallout, unless the correction is either larger than expected or the sovereign's macroeconomic stabilisation policies are sufficiently inadequate to push the country into a business recession.

Lotsa homeowners will see their equity go bye-bye. But that shouldn't be too much of a problem, as long as incomes remain sufficient to cover amortisations. Would suck to have been a first time buyer over the last couple of years, though.

- Jake

Friends come and go. Enemies accumulate.