I'm not trying to start anything political here, so I sincerely hope the mods wont delete this thread. I'm an Aussie with an interest in world events, including financial. I dont have much of an understanding of the big picture, so just asking here for some informed opinions and comments really. From what I can tell is that some of the small banks/credit unions in the US had been handing out housing loans to lower income earners, who were in all probability, going to eventually default on those loans due to their limited means of repayment. And very possibly due to the loan repayments being way beyond the reach of income and cost of living expenses. I have no prejudice against low income earners (being one myself). The part of the story that I dont get is why this has affected the stockmarket. Here in Oz, the rule is that if you default on your mortgage, the bank/credit union/lending institution, changes the locks and sells you out - to put it bluntly. They re-coup their money, and you receive the balance from the sale (if any). No need for the Oz stock exchange to get nervous. Unfortunate as the scenario is, I'm sure it happens multiple time daily around the country. I was listening to a US financial analyst last week on the radio. His opinion was that the US had just experienced a 'mini' recession, but was far from being 'out of the woods' so to speak. He feels that while there has been some recovery on Wall Street, it could very easily happen again in an instant. He mentioned that another 'adjustment' in the stockmarket is very possible, and could be serious enough to cause a full blown US recession. Which would obviously lead to a world economic recession. Sorry, not meaning to be a doomsayer. I personally feel as a home buyer myself, that it will pay to be cautious in the coming year or two. Anyway, if I have any of the above facts (as I know them) wrong, please feel free to correct me. So give me your enlightened opinion, I'd love to learn some more.