Australian sub prime mortgage market.

It always is! Here its the Banks fault for NOT lending, total paralysis prevades, not healthy at all

 

It always is! Here its the Banks fault for NOT lending, total paralysis pervades, not healthy at all

 

Seems to me we're back to the good old days when the banks would lend to anyone as long as they didn't really need to borrow.

 

Thats probably as good a description as we'll ever have!

 

Karen, I think that you are oversimplifying it. Whilst I have empathy for people needing to borrow in this economic climate, I also think that if I were a banker, I wouldn’t lend to someone who didn’t have suitable security or the obvious means of repaying the loan.

The solution ………… pump and save!

By the way, how’s the stash under the bed going?

 

More outages

This bloke spruiked Storm Financial on his daily radio show for months, if not years..... turns out he got ruined too...

 

rolled a bill last week at 4.75%, crazy cheap and more to come

*licking lips*

 

My eldest 2 kids who are working have recently been offered a higher limit on their credit card.

 

i'm just glad i don't have the need for one.

 

You must have a lot of pump and save coupons.

 

Wasn't sure what you meant by 'pump and save' LOL! Don't worry, I'm keeping an eye under the valance for any creeping reds...
With all the wailing about how things have seized up due to lack of credit, I think we've lost sight that too much credit is what caused this problem and the cold hard truth is that many who are now finding it hard to get money, in truth probably shouldn't be getting it. I haven't heard of a single instance where any real, viable business has been brought down by an inability to borrow. It's a bit like a few years back when farmers were complaining they were pushed to the wall by the banks - fact was, their farms weren't viable.

 

It's happening now.

 

It sure is.

 

[ It's a bit like a few years back when farmers were complaining they were pushed to the wall by the banks - fact was, their farms weren't viable.[/QUOTE]

Not as simple as that....if you really want to know I can explain but only if you have an open mind, ie don't have some personal idealist issue to push.

 

we don't do that on F-Chat......

 

Have to say I am amazed that anyone who is either in business or has a modicom of sense can truly believe that there isn't a BIG problem for businesses in borrowing funds. Mortgages are another matter, thats bad enough, but with the tightening criteria affecting 1000's of businesses, it can only lead to job cuts and bankruptcy for many; which is a crying shame because this whole mess is totally man made. The only way a country can get out of this is to produce and export.

 

you mean start a war?

 

I also get offers all the time to go from $5K to $10K. Not interested thankyou.

My brother actually cut his back from $10K to $5K last week. Getting a little paranoid about job losses in the Mining biz I think.

 

mmmmmm I think thats 'bin' tried hasn't it

 

Not as simple as that....if you really want to know I can explain but only if you have an open mind, ie don't have some personal idealist issue to push.[/QUOTE]

No, you're right, nothing is ever as simple as one sentence - I should have said "some", and no doubt there were some that were badly treated.

 

OK, well maybe you guys can point me in the right direction. I can only go on the business people and bankers I know personally and while there are lots of problems with drop off in demand etc, I can't think of an example where a lack of further borrowing is the core problem.

And jeffQV you're quite right that the problem is based in our lack of real production end export (excluding what's dug up).

 

I don't need more funds than I've got but my bank (NAB) tells me they are looking closely at all new deals and huge equity is required for any projects with any risk (and in this market that means ALL deals). Anyone who did a deal 6 months ago agreeing to buy something on the basis that they would worry about the funding later could be in trouble now. And that would be a significant number of businesses. Many a bank that says "no worries mate" when asked about funding really mean "no worries mate, unless your P&L or balance sheet stop looking good or something really drastic happens in the economy".

 

Very clever.
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i begged the NAB to take some funding away from westpac in 07, gave them all the info, but they wouldn't match the rate, i couldn't believe it.

 

Priceless