Australia in a Recession?

In 1990, inflation was running at a manualised rate of around 7.7% in the June quarter that year. Just like now, in Australia it was fueled by a big resources boom - just like now. The Reserve Bank nudged interest rates up to 18%. In the following quarter, the economy shrank by 1.6% and the country entered a deep recession. Borrowers started defaulting on their loans, which caused banks to lose money. And some financial institutions in Australia went under to collapse. So we can see that big property crashes can in fact go on to infect a financial system more generally.