Can someone explain the following sequence involving the sale of $780M of Mortgage –Backed Bonds to the RBA? (without hinting or proving that either the banks are dodgy or the RBA is either naïve or complicit)

A not too technical explanation would be good.

04/04/08 – Australian property prices are deemed 25% overvalued by IMF
http://www.news.com.au/business/story/0,23636,23482668-31037,00.html

15/04/08 - The banks ‘have been urged to speed disclosure of losses and improve the way they value assets’ - Glenn Stevens

21/04/08 – RBA buys a new record amount of Mortgage –Backed Bonds $780M – brings total to $2.35B http://www.bloomberg.com/apps/news?pid=20601081&sid=aegfyWnNxJyE

26/04/08 – Melbourne house prices come crashing down (8.4%) http://www.scopical.com.au/articles/News/Australia/4937/Melbourne-house-prices-come-crashing-down

Who said the banks are dodgy?

It is the RBA taking the risks that other institutions are too scared to take.In other words they want to maintain stability in the financial system.This is crucial,because loss of faith in the system is far more damaging than the debacle of the sub prime in the US.

Panic is our greatest enemy.Their total purchase for mortage backed bonds is only 2.5 billion or in many parts of Sydney,just 2500 houses.A small number.I think it just more likely symbolic than having any real impact on the market.

Strange.
I hope they are at least AUSTRALIAN mortgages not USA ones.

Did the "Future Fund" invest in Sub-prime mortgages?