80% falls happened in Japan in the 90s...I fervently hope they won't happen in Australia for the sake of a few friends of mine. I merely seek to draw comparisons of what our elected leaders are doing right now to what other people's elected leaders did in similar circumstances in the recent and not so recent past.
The sub-prime 'problem' was approximately 3 million mortgages in default. A meaningless drop in the bucket of the US real estate market. Few if any were investment properties rather they were homes sold to people who couldn't afford the repayments. The disaster was caused by what the 'market' did. Massively leveraging and collateralising mortgages and selling them as AAA rated bonds and other derivatives.
You don't seriously expect me to tell you when you should upgrade your house do you?
Highest bid 150k short of the mark tell you something about what your house might be worth?
I will give you a hint...if that bank had reached a figure that got THEM off the hook (not the people who lost it) they would not have passed that house in.