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Meanwhile, George Negus points his pen and moustache at sub prime via dateline. Some interesting opinions. another 2 million homes to be repossessed, not enough credit for Gen Y to get a uni education....and George Soros kicks in with his D&G slant...

What did I say that makes you think I have a problem with the banks? I am spelling out what I expect to happen. The banks are predictable to the point of being automatons, because their imperative is to maximize profits.....and it would seem with less judicious calculation of medium and long...

Check out graph 10 GR. Aussie banks HAVE to borrow foreign funds if they want to keep revenues stable. Foreign funds make up on average 30% of their liabilities. And I am talking banks, not the Wizards and Rams of the world.... Though obviously, as foreign credit continues to cost more, and the...

I am continuing to post what unfolds with the bond and mortgage insurers because of my belief that it is fundamental to the availability and cost of foreign credit in Australia. Further ratings agency downgrades of the insurers credit rating will force many banks to increase written losses...

http://www.somersoft.com/forums/showthread.php?t=35054

Kenneth, this article highlights many of the concerns I have... http://www.businessspectator.com.au/bs.nsf/Article/Shadow-banking-system-down-credit-out-APHC9?OpenDocument?OpenDocument

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One more point....those who think fundamental demand for property will absorb reasonable increased tightening of foreign credit should keep in mind over 40% of new loans written nowadays are for IPs, not PPRs. I would argue most investors are more sensitive to rate rises than owners, on the...

We should care because the end of cheap credit will effect short term property growth.... I agree the near tripling of prices in the last 7 years would not have been possible without foreign credit, which has been lubricated by securitization (the ability of lenders to keep higher risk loans...

Re lack of choice, I meant in relation to the origins of capital that have driven Aust property prices to where they are today. Whether RAMs or Aussie banks, Australia is more dependent on foreign sourced credit from the same sources, now more than ever before. As I have mentioned elsewhere...

Alex, an unsecured loan or one secured against assets of highly suspect value (such as CF's book), is in my view not a commercial grade loan........ hence my interpretation of the 40 bank lifeline being an 'investment'....though I accept investment is not the ideal term either.... as the...

Kenneth, as a follow up of my 1st point above, can I bring your attention to the fact that Aust's big 4 banks invested significantly in the US company Countrywide Financial (see below). This company had probably the most extreme exposure to sub prime mortgages. The ignorance of the Aussie banks...

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Following on from the above post, here's further insight into the plight of the bond and mortgage insurers......now the banks are being asked to bail them out...... http://www.ft.com/cms/s/0/107a1c0c-c9eb-11dc-b5dc-000077b07658.html...

Here's another serious ramification of the sub prime fall out...... http://www.youtube.com/watch?v=8lDxQ_0lPYQ This one involves the risk of US mortgage insurers going belly up. Many sub prime mortgages are due to be refinanced over the next 3 months, which can be expected to increase...

A classic Jim Cramer behind the scenes perspective of the sub prime fallout... http://www.cnbc.com/id/22706231 ...Aussie bankers considered "MORONS" by aggressive US banks...