Australian sub prime mortgage market.

The bank gig last night was good. Have come away not changed in my view that in the short term, CASH IS KING.

 

GREAT- Want to buy a 360 N-GT?

 

mmm could be a great mid-long term investment. ill talk to the bank today

 

My heart says yes but the DSC (read head) comes on and .... you know the story.

 

great comment by goodyear about BHP . "we have more cash than what we know what to do with "

market up again , life is good again .

 

MBL is at 78.80 odd

typing one handed as other hand ripping hair out

 

get in now , $120 stock next year . it's never too late .

BHP will get you more shares for your coin . they'll go up just as hard as MBL , so you'll get more in return .

 

mate....as soon as my commsec papers come through im in! may even have arrived today

 

Did someone say "CASH IS KING" ?

 

some shifty greek, IIRC

 

Nah, not shifty, I have SMG....smart money grab

 

Interesting story in this week's "Time" as to how US sub-prime knocks-on around the world and how no-one really knows where the debt has finally ended up. Scary part is that next year is due to see the resetting of $680billion worth of loans - "nearly 75% of which are sub prime" !!!!!!

 

It gets even more interesting when you consider that the loan amounts, most of which were made on honeymoon rates, (low interest at start rising to market later) are based on mortgage values perhaps 18 months old. Under these circumstances, it gets tricky to value the real or realisable value.

 

They sound the same to me

Gettin horny again/

good sale

 

Seems to have spilled over to UK markets too. Just spoke to my MD there who told me that some sub-prime lenders had stopped lending altogether whilst others had increased their rates by between 0.25 and 0.75%. Criteria also tightened with Buy to Let (Investment) products now priced so that rental does not cover so they don't lend. Heavy adverse products most affected. The UK watchdog is also looking hard at how these are sold and five firms are being done. I have to say that mortgages are rarely 'sold', they are made available when someone calls up and says , I'm in the s**t, can you help? Here in NZ there are only two players of note and they have pulled in the strings too.

 

No! in a word. Don't think Challenger are here.

 

Property Finance Group ceased trading today, liquidity problems cited. Getting tighter here!

 

profit takers moving in today , blah !

 

I don't think the folks at the Goodings sale are likely to be affected; problem is as Beamer mentioned 'honeymoon' rates now converting to rates way above what was anticipated.

 

fed will step in , cut rates again , market will like , let the good times roll...

 

They can't cut the rates by the 2% that would be needed to save the loans I'm referring to...especially since when a lot of the properties are revalued for the re-set and come up WAY below what's owed. Wouldn't help if they did anyway cause the whole setup relies on a rising market to keep the cash coming in. As someone else said, I'm feeling very 'back to the 80's' right now and for all you youngsters the first real estate market to collapse then (and is only now getting back to where it was) was Japan (the biggest world player in those days), followed by UK(early 90s), later HK (97 - also just now getting back). BTW, one of the big unanswered questions at present is how much exposure McQ has to CDOs?

 

sweet...email verification from commsec that account is ready to roll.

MBL at 74.35