Why is Australia sitting pretty?
Australians have not forgotten what it means to be responsible -
When Australians borrow money to buy a house, they know that if they default and the mortgaged property doesn't cover the debt, they will be responsible for the shortfall. And the lender will chase them for it. It's a neat way of reminding Australians to borrow responsibly.
The responsibility of individual Australians keeps everyone safe.