And now we ride the market down until all government borrowing is exhausted,the bottom arrives and the governments,federal,state and their local councils "get it through their thick heads" and allow industry to build sustainable housing, not the prescriptive high density clusters with more congestion.

Labor's green state governments have orchestrated this prescriptive decline in the first place, to achieve their desired no growth utopia, by pushing the nimby policies in the first place. You only have to listen to labor state leaders to recognize they have no answers except borrow, spend and create government jobs, like Bligh's Queensland, promising 3000 weed pullers down the local creek at $19,000per year each! I wouldn't think their children will be starting work down the creek.

Remove the failed prescriptive planning models and replace them with impact assessable planning policies(a product of the Fitzgerald reforms) where home builders can deliver on the desired outcomes outlined in all local and state strategic plans,legislation and polices. If the public service can't think outside the square or if it is too much hard work then, resign and give the job to someone who can, because no one in the private workforce wants to loose any more following your failed solutions.

And, No, this is not a green light to burden the wealth creators and private enterprise (most of the population) and home builders with further locked gates and fences to high even the public service can,t jump.

This article reminds me a bit of the movie ID4 where everyone is sitting around for the Americans to do something. We do not have to sit around wait for the US to pull it self out of its mess. Lets chart own our course and decouple our thinking. I think we should use this crisis as an opportunity to reform banking within Australia in stead of trying to come up with a global solution. Just as diversity in ecology is a good thing so is diversity in banking and finance. It is because to some extent of this diversity Australia may escape the worst effects. However we do need to reform banking in Australia further as it is only good luck not good management or regulation that has helped us avoid the problems overseas.