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eric pebble

TIMEBOMBS IN BANKS & LIAR LOANS

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This video may have been posted by someone else. Apologies if so.

But -- WATCH & LEARN.  See how Oz & Canadian banks are now being shorted by some whizz kids...  [Remember "The Big Short"??]

AND --- don't think this is restricted to Australia & Canada.....   LONDON & the UK is another HYDROGEN BOMB just waiting to go off........ 

See how the guy talks of 33+% of Australian mortgages as LIAR LOANS.....   Surprised??   Nope.  Anyone with a brain of a 10 year old can work that one out....

WATCH & LEARN guys!!!!  WATCH & LEARN!!!  THE GUY TALKING IN THIS VIDEO HAS WORKED IT ALL OUT!!!!!!!

 

 

 

 

 

 

 

 

 

 

Edited by eric pebble

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Only 7 mins in so far... 

People in Oz & Canada (& UK!) so convinced property prices only ever go up, they lie to get debt (self cert and IO mortgages) in order to gamble on that fact. E.g. in Oz 4% mortgage rate used to achieve 2% yield rental. Year on year loss to gamble on HPI!

Who is this chap?

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Eric!

Youre talking Aus into a recession.

On a totall unconnected theme, nothing at all to do with Aus and China and AUssies and banks ...

Here's Alan Whicker going to Nauru - the Switzerland of the pacific ...

 

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6 hours ago, Sausage said:

Only 7 mins in so far... 

People in Oz & Canada (& UK!) so convinced property prices only ever go up, they lie to get debt (self cert and IO mortgages) in order to gamble on that fact. E.g. in Oz 4% mortgage rate used to achieve 2% yield rental. Year on year loss to gamble on HPI!

Who is this chap?

Theres a Royal Commison going on in Aus.

Think of all the dodgy crap from the late 80s bubble - Endowments, back handers etc etc.

And multiply by about 10.

And imagine it done by a small clique of people in Northern town Local Auth.

Thats the Aus finance/legal/regulation regulation.

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Thanks for posting this Eric, saw it originally on your post on the "Austrialia Facing its Demons" thread, fascinating video!

To reiterate the question, who is the interviewee? He really sounds like he know his stuff, clearly an investor who understands cycles and how to best profit from them in both directions. 

And yes I think we should all be seriously thinking about shorting Aus bank stocks as he is doing!!! So i'd like to know.... which Aus banks have the most exposure to all these mortgages??

Also, watching the video, how similar does it sound like the situation in 2008!? Liar loans/self cert/delusional belief in mad gainz to infiniti etc etc...

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Think I found the answer to my own question in this page:

https://www.news.com.au/finance/business/banking/ill-be-working-till-im-80-the-biggest-revelations-from-the-banking-royal-commission/news-story/7490fb181987031a50ea48f6d168011a

Quote

 

The Banking Royal Commission held its first round of public hearings from March 13-23, with consumer lending practices of NAB, Aussie Home Loans, CommBank, ANZ, Westpac, St George and Citi under the spotlight.

The second round, focusing on dodgy financial advice, kicked off on April 16 and runs until April 27, with AMP, CommBank, ANZ, Westpac, NAB and their financial planning arms facing a grilling.

 

However, even more interestingly on this same page:

Quote

 

NAB STAFF ACCEPTED CASH-STUFFED ENVELOPES

The bribes of up to $2800 were paid to a group of employees in western Sydney to wave through loans they knew were based on fake documents in order to “smash targets” and score bonuses, the Commission heard last month.

The syndicate of 11 people, six of them branch managers, allegedly made up fake pay slips, IDs and Medicare cards. In one case, a borrower was told they could borrow $800,000 when the valuation was just $450,000.

A whistleblower first raised concerns in 2015 about the bank’s “Introducer Program”, which generated $24 billion worth of home loans between 2013 and 2016 and paid out between $100-$150 million in commissions for lending referrals to non-bank employees such as financial planners and accountants.

 

 

😲😲😲 It is 2008 all over again!!!

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How does the money supply increase, killing old debt via inflation and devaluation of existing cash and savings already in the system......it is by creating more as debt by way of loans, like the seller of a property really doesn't care if the purchaser defaults on the mortgage debt at any time, the shopkeeper wants the sale paid for by the purchasers credit card, how it is paid for over how long at what cost or even if it is never paid for not their problem.......Targets are there for a reason, any target/carrot if people are given a big enough incentive to acheive and to exeed will happen some way or another.....people are very easily tempted, pressure and vested interests from all directions, surely what the banks are doing has got to be endorsed by higher powers with responsibility......The only other way to increase the money supply is to give the money away to targeted groups, sometimes through unearned work, sometimes through over paid work, sometimes through no work at all.😉

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On 18/09/2018 at 15:09, deadlyavenger said:

Think I found the answer to my own question in this page:

https://www.news.com.au/finance/business/banking/ill-be-working-till-im-80-the-biggest-revelations-from-the-banking-royal-commission/news-story/7490fb181987031a50ea48f6d168011a

However, even more interestingly on this same page:

 

😲😲😲 It is 2008 all over again!!!

Yup.......  NOTHING has changed...  It's the same old, same old....:wacko:

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8 hours ago, eric pebble said:

Yup.......  NOTHING has changed...  It's the same old, same old....:wacko:

Let's hope with I.R so low this time there is no way to rescue these c**ts.

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The youth can now save towards a deposit using their superannuation account - an income tax write off worth 30% 

30% of sales are BTL

40% of loans last year were IO

80% of high rise flats bought by the Chinese before the clampdown on foreign buyers started 

PM argues soft landing required & cannot possibly stop negative gearing or  cut capital gains tax relief, or it'll crash the market.

Median income is about $50-55k, the median house costs $809k (and we thought it was stupid here)

Surely their banks are going to get massacred if all the above info gleaned from t'web is accurate?

Tick, tock

Edited by disenfranchised

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33 minutes ago, spyguy said:

Money corrupts.

 

Absolutely.....always wanting more brings out the worst traits in people.......some people will never be satisfied.😉

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2 hours ago, disenfranchised said:

The youth can now save towards a deposit using their superannuation account - an income tax write off worth 30% 

30% of sales are BTL

40% of loans last year were IO

80% of high rise flats bought by the Chinese before the clampdown on foreign buyers started 

PM argues soft landing required & cannot possibly stop negative gearing or  cut capital gains tax relief, or it'll crash the market.

Median income is about $50-55k, the median house costs $809k (and we thought it was stupid here)

Surely their banks are going to get massacred if all the above info gleaned from t'web is accurate?

Tick, tock

If you have a read of the Basel 3 rules, IO mortgages is basically banned. Or needs such high capital against the loan.

Long term i.e not bridging loans were only found in the UK, Sweden (where they are a bg as problem as Oz) and Oz/NZ.

BoE has banned IO for OO. IO BTL is only avialble if the equity is backed by the LL house.

The Oz/NZ regulators are a bunch of dumb bent ockers.

 

 

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On 22/09/2018 at 09:08, spyguy said:

If you have a read of the Basel 3 rules, IO mortgages is basically banned. Or needs such high capital against the loan.

Long term i.e not bridging loans were only found in the UK, Sweden (where they are a bg as problem as Oz) and Oz/NZ.

BoE has banned IO for OO. IO BTL is only avialble if the equity is backed by the LL house.

The Oz/NZ regulators are a bunch of dumb bent ockers.

 

 

A 15 year old schoolchild could have worked out that it was all a giant pyramid selling scam....:rolleyes:

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oz a huge continent with a tiny population. it is insanity and is being used to control the workers not to the populations advantage but to the bankers. the more expensive property the bigger the take from others on the workers effort, 

Edited by jimmy2x3

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5 hours ago, jimmy2x3 said:

oz a huge continent with a tiny population. it is insanity and is being used to control the workers not to the populations advantage but to the bankers. the more expensive property the bigger the take from others on the workers effort, 

oz a huge continent.... with a small cities  water supply ....

The problem with looking at other countries thru UK eyes is you never see access to water as an issue.

Talk to someone from the ME.

 

 

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On 22/09/2018 at 09:08, spyguy said:

If you have a read of the Basel 3 rules, IO mortgages is basically banned. Or needs such high capital against the loan.

Long term i.e not bridging loans were only found in the UK, Sweden (where they are a bg as problem as Oz) and Oz/NZ.

BoE has banned IO for OO. IO BTL is only avialble if the equity is backed by the LL house.

The Oz/NZ regulators are a bunch of dumb bent ockers.

 

 

Over and over and over and over and over again -- the Banksters do the same thing.....  Rip people off.... by fraudulent, dishonest means....

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7 hours ago, eric pebble said:

Over and over and over and over and over again -- the Banksters do the same thing.....  Rip people off.... by fraudulent, dishonest means....

Problem is - treating banks like sensible grown ups, with skin in the game.

They are not and bonuses mean bankers are well away beford it all comes crashing down.

Banking needs brutally simplifying and regulating. BoE MMR finally does that.

The levrl of debt going into real estate is very much smaller. Thats higher capital requirements, which still need to go up, and tge fact that 80% of uk banks by lending either went bust or some form of ukgov bail out. Thats damming of ukgov and boe 97-2008. The entire labour gov, boe and uk banking needed stripping off their pensions anc jailing.

Spys quick guide to uk bank ****** up post 87.

Lawsons boom, masive expansion late 80s. Crashed 90-98.

Enfiwment mortgages. Basiczlly an io mortgage with a pretend investment. Used to rug repayments i.e make capital repsyments tiny, projecting returns of 9% compounded. Insane. Bank mortgage lending should have been half the ammount.

Demute of building socities - late 90s to 00.

Abbey national 2000. The big precursor to 08. AN replaced dxpensive deposits with higher yielding commercial loans. Totally illiquid, AN went bust. All swept under carpet. Luqman arold and hester spent 3 years wringing value out of dumb fux corp leases. AN bankers suckered by smarter borrowers.

300 onward. Massive increase in banks assets ie debt. Forget repaymeny, io means we can lend 2x more! Securitise stuff.

Bang! All gone 8 years. 150 years of building sicities - capital, lending pripocesses blown up in less than 10 years.

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  • 150 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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