Australian sub prime mortgage market.

Why wont they lend me $2 mill.

 

correct, they only have themselves to blame. When it sounds too good to be true........it often is too good to be true

 

Glad I'm not the only one that feels no sympathy for them. While they were being taken on great overseas holidays by this guy there were no complaints - only when it went pear-shaped on them did they get upset. You take a big risk, you gotta be ready for the fall out. Morons.

 

From what I've read, apparently Storm Financial was selling products from some of the major fund managers - for example the Perpetual Trustees "Geared Australian share fund" and similar products from Colonial First state. These have had great returns between 2001 -2007. Apparently many of their clients borrowed money to buy these products, so effectively had gearing on a geared product. Great returns when the going is good, but bad news since November 2007. The returns were well above any borrowing costs, and the banks were happy enough to lend money using the product as security (I think about 70% LVR)
The appears to be that no one ( ie Storm staff or Perpetual ) told the investors to "sell" their product when the market started declining, and consequently a lot of them have ridden the market down in to oblivion, and of course the banks still want their $$$$
Who do you blame for that ?

M

 

[QUOTE="Megan";138457488]Glad I'm not the only one that feels no sympathy for them. While they were being taken on great overseas holidays by this guy there were no complaints - only when it went pear-shaped on them did they get upset. You take a big risk, you gotta be ready for the fall out. Morons.[/QUOTE]



yeah i saw that, I really dont get it when someone puts thier entire life savings into a scheme that was questionable at best, then again, they didnt lose any money, it just got transferred into another account.

When I saw these people crying and wanting blood it made me laugh.............why get involved with something that if it goes wrong you end up with nothing.........

 

Simple, they should have done some homework and worked out the worst case scenario.

 

I feel very comfortable that good quality journalism would have been used. *cough*

Very true Goobs.

Cash flow is king. PERIOD

I've been bitten buying shares for that exact reason, not doing enough homework. I have no one to blame but me, I bought them. Fortunately I haven't had to sell them. I am of course sitting on a "paper" loss at this point in time.

 

Agree 1000%, always understand the risks and look at the worst case scenario, and make sure you can cope with that outcome if it ever happens. It amazes me that people invest in stuff they don't fully understand.

M

 

unless its a margin call you havent lost anything, its only a loss when a sale is recorded

 

They wouldn't lend me $2m either. They lent me $10m!

I'm doing well too. I have $5m left!

 

Yikes, just saw that MQG is down more than 9% today - trading around $15.42.
Doesn't look like a lot of support there ATM

M

 

and in the words of John Elliott..............................$120.00 pigs arse

 

and $110.00 away from what a so called guru was telling the world it was GUNNA make

thanks for the dude sending me the link

http://www.ferrarichat.com/forum/showpost.php?p=136964615&postcount=11

 

hahaha...how funny. i'd forgotten all about that brilliant forecast.

 

funny!...........its sad really, someone saying buy, buy, buy at $72.00, get on it.............

just think someone here would have listened to that and spent 10k buying 138 shares which at today's close is $2187. Thats $7812.50 down.......does someone need to be licensed or institutionised to give advice like that

 

I think its called 'free market economy' or maybe Pink Floyd got it right with Money

 

Pink Floyd should never be confused with lack of finesse, unlike the guru of financial advice........me thinks money money money by ABBA

 

Should be institutionised for giving advice like that.

 

No, you should be locked up for giving advice like that, but institutionalised if you followed it.

 

Entirely dependent on which institution one had in mind.

 

correctamundo

 

mental comes to mind

 

the Ponds Institute?