hi chilliaa
I like a good laugh and that one made my day.
Responsible lending
if you are a investor in the big four sorry to say thats nt been the case for the last 7 years that I have know most of them.
Responsible lending if you mentioned it half would not know what you ment and the other half would be like me and would laugh thinking you had just made a joke.
is it Responsible lending to lend to a person that has no track record in a development has no idea about development but because he can get a mate to do a fancy feaso he is auto a developer.
or is it Responsible lending to lend money to a group that decided to do a each way bet on a share so you bet with the guy that the share would go up put you matched by funding the guy that the share went down so its a case of head I loose tails I loose and thats one of those 4 you invest in.
is it Responsible lending that you have banks currently right now finishing off development that they have already lost there money back and they are 70% complete so every dollar that they throw in they have no chance of getting back and they might as well burn the money.
is it Responsible lending that you have lenders that have lent to other entityies taken the loan off there bottom line and those entities that they have lent to have now gone ito receivership leaving the borrower not only high and dry but high and dry and looking down the barrel of a liquidator not for there fault but for the fault of the 4 great pillars of our banking system.
remember next time you go to a meeting of the 4 pillar banks you invest in.
that there is one and only one reason for the wammy we are getting at the moment and thats a very simple word
greed
not Responsible lending
Responsible lending was in the seat in 2001 but it got not kicked out but thrown out on its ear in 2003 as greed took over.
and greed has been there ever since.
and as long as you have guys at the top that control there bonus with total disregard for anyone else the greed will be in that seat
now greed for me is not a problem (its is for a few)
but to think Responsible lending is comming back now thats a dream
Responsible lending RIP as it died along time ago
as for no doc/ low doc just wait it will come back but it will be called
non recoarse lending
or asset only lending.
or no income required lending.
but as long as greed is there it will come back
may even come back as a liar loan.
you will see lots of products come off the market as the market changes but one thing you will not see come back is
Responsible lending as most banks have forgotten what it is
May i politely request that your responses are put into paragraphs, this would reduce the time it takes to understand your post.
OK from a brief overview view of your post:
1) i wasnt invested in Australian banks prior to 2008
2) banking stocks have already corrected some 30-40% odd during 2008, so there is some margin of safety compared to 2007, when everyone was just forecasting blue skys for everything.
3) Australian big 4 banking stocks have an investment position that is unique in the world. I have NO investments in any USA/UK or other international banks. This does not mean that Australian top 4 banks are perpetually a good investment, but a position on the Australian banks is essentially a bet against Australia's economic prospects vs their international peers coupled with the truely independent nature of the RBA (as opposed to say the USA, where the president has the right to appoint the Reserve bank governer or what ever its called over there, plus the diametrically opposed mandate of the US fed mandate of low inflation & full employment, which is a fallicy in itself and please dont get me started on this point)
4) I am currency receiving something like 11% gross dividends on banking stocks, with this sought of return (against say the long term gross performance of all listed shares of 12%) i only need 1% capital appreciation a year to match shares long term performance, i again have a margin of safety.
5) Our residential market actually 'peaked' in 2003 against the USA in 2006.
6) Our government has no debt against huge debt by the USA governemtn.
7) Our interest rates are significantly higher than in the USA, so if the **** really hits the fan, we have more room to manourver than the USA, where interst rates are only 2% odd (less after the latest interest rate cuts).
