Tuesday, Feb 12, 2019

Bank exposure

WolfStreet: I’m in Awe of How Fast the Housing Markets in Sydney & Melbourne Are Coming Unglued

The australian authorities seem to be letting the house collapse get underway, but it seems that there has been the same sub-prime liar loans, false documents, interest only etc, as the USA originally, so their banking system must be heavily exposed to losses and I guess australian mortgage backed securities are no longer sound. Australian central bank doing emergency rate cuts and keeping QE a policy option. There doesn't seem to be a large observable decline in the aus dollar against gbp though I wonder why. There has been a loss against us dollar. Its a bit weird to see a genuine new one emerge. In fact i worked with an australian guy about 3 or 4 years ago and said the collapse for australia was coming and he should read steve keen. Needless to say he bought last year "at the top"

Posted by stillthinking @ 12:54 AM (473 views)
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1. stillthinking said...


More details on quite how bad its going to be here. I wonder if the Australians are going to start turning up in London again like the old days, maybe a few remember they pretty much took over Acton and Shepherds Bush area, momentarily enabling bars and restaurants, and then skipped off again.

Tuesday, February 12, 2019 01:05AM Report Comment

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