Quote:
Originally Posted by Stephen65
The proportion of non-conforming loans in Australia is much lower than subprime loans in the USA and the default rates are also lower.
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Well of course they are Stephen, our housing prices haven't begun to crash yet. When they do all the wannabee millionares will begin putting their investment properties up for a quick sale and then the market will really tank. Then you will see some non-performing data coming out enmass.
The comments about subprime were mine BTW, the RBA governor was discussing other matters. He was warning Australians NOT to buy investment properties. If you did, you will be screwed.
It's going to happen everywhere BTW. The whole western world nearly has seen a house price bubble
Britain faces worse housing crash than US
Wednesday, March 19, 2008
Britain could follow the US into severe economic slowdown – and see an even worse house price crash, experts have warned.
Parallels between consumer spending in the two countries are 'disturbing', said the respected financial forecaster Capital Economics.
A main cause of the US slump has been falling house prices, which are now being seen here too – but the British market is even more vulnerable and could fall more sharply, it added
http://www.metro.co.uk/news/article....&in_page_id=34