Detailed in the videos below, we see similar themes and catalysts between the U.S. in 2006 and Canada today. As property prices mean and revert so do highly levered economies and financial markets. Expecting any other outcomes is unrealistic.
It’s no secret that Australia is experiencing a downturn in the property market. But for Aussies who own their own home or have a mortgage, there’s worse news. Many believe calling it a downturn is foolishly optimistic – the slump we are in is more like falling off a cliff. On 60 MINUTES, Tom Steinfort speaks with real estate and finance experts who predict property prices could slide by as much as 40 per cent in the next year. And if they’re right and numbers like that eventuate, there’s only one certainty: our entire economy faces catastrophe.