A bit of exaggeration

I don't look at Boing Boing very often anymore, and I was rather surprised to find this heading for a post there over the weekend:

Australia's housing bubble is built on a deadly, about-to-burst credit bubble

Deadly??

Even the explanation in the post sounded, shall we say, a tad inaccurate in the current circumstances?:

If you buy a house in Australia -- where housing prices are out of control, even by global standards -- you can wait a couple months for the house's book value to go up, and then borrow against that "unrealised capital gain" to buy another house...and then you can do it again.

 This is how so many speculators in the Australian property market have come to own several homes whose rental income can't pay the mortgage, but who are still able to borrow on those unprofitable properties to buy more unprofitable properties.

We have some problems, but I didn't think this explanation sounds at all accurate....