Whilst the bigger banks escape under the "too big to fail government guarantee".

They should start with the big banks due to their over-reliance on minimally equity loans into the serial housing ownership market....

HOW exactly do you get 'equity' sufficient to buy another property by buying one on a mortgage?

You need to OWN it for a term before it develops equity... unless the banks figure that future equity is sufficient to replace current equity...... and then fall into the trap of forcing themselves to promote exactly that idea, since to do otherwise means they will fail dismally....

This is Alan Bond all over again writ right across the banking sector in Australia.... get hold of some potential development land, raise another loan against that 'equity' - then funnel off the cash into family companies etc as 'business costs'.....

Trouble is - most of these fools engaging in this market do not have private and family companies to side-step 'fees' and 'management costs' into, which will be sacrosanct as 'business costs' in the event of failure...... they simply hope that the next turn of the wheel will be a good one....