This ain’t your parent’s housing correction. It will be much worse

Detailed summary

Commonwealth Bank quarterly trading update shows the housing market is still some way off touching the bottom. But it’s what comes after that we need to worry about.

Commonwealth Bank chief executive Matt Comyn will hardly be thrilled about the downturn that has started in the housing market and is about to spread across the rest of the economy.

Australia’s banks are a mirror of the economy, with leverage. When the nation hits a soft patch, so do its banks.

Opening of the article, excerpted from Australian Financial Review. To read the rest, open the article on the publisher's site.