# Aussie Mortgage Lender Implode-o-Meter



## Kimosabi (15 August 2007)

Wow,

Looks like this little International Credit Crunch has spread to our fair shores of the land Down Under.

So, this thread is to keep track of the Aussie Mortgage Industry descent into the Abyss.

My prediction, is that nobody in Australia in Three Months time will be able to get a mortgage without 20% down.  I wouldn't be surprised if we go through a stage where nobody can get a mortgage at all.


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## Kimosabi (15 August 2007)

> *RAMS faces a sub-prime shearing*
> 
> *THE nation's biggest non-bank lender, RAMS, is the latest victim of the global liquidity contagion, unveiling a profit and dividend warning yesterday less than three weeks after an $885 million stock exchange listing.*
> 
> ...




http://www.news.com.au/business/story/0,23636,22247337-462,00.html


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## Kimosabi (15 August 2007)

> *Loans crisis could lift interest rates*
> 
> Non-bank lenders set to increase rates above RBA
> Big Four banks say will stick to RBA rates
> ...




http://www.news.com.au/business/story/0,23636,22247869-462,00.html


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## numbercruncher (15 August 2007)

The day of reckoning is drawing near, its been atleast a decade since we heard the saying ......



Cash Is King


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## somesortoftrader (15 August 2007)

With RAMS, they do state that all of their "book" is insured. So I guess from that perspective they are 'safe'.  

However I think that they are vulnerable because their business model is quite one dimmensionable....(ie Home loans) does anyone else agree, or am I off the track?


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## Kimosabi (15 August 2007)

somesortoftrader said:


> With RAMS, they do state that all of their "book" is insured. So I guess from that perspective they are 'safe'.
> 
> However I think that they are vulnerable because their business model is quite one dimmensionable....(ie Home loans) does anyone else agree, or am I off the track?




I'm not convinced, many a Mortgage Insurance Underwriter is going to go bust as result of this little debacle

What good is having insurance, if your insurer goes bust...


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## Atomic5 (15 August 2007)

numbercruncher said:


> The day of reckoning is drawing near, its been atleast a decade since we heard the saying ......
> 
> 
> 
> Cash Is King




actually I heard it last year around Juy when the stock market was tanking because the USA was having inflation problems, and 2-3 months later, there's a giant deluge of money back into the stock market - no great depression, no end of the world as we knew it ... etc

Wonder what the USA will come up with next year to crash the market, if there's still a market next time 'round? We should find out this week if the Fed cuts interest rates and if the bandage will hold until next summer at least.

I cant see this ending in anything but global war this time though   

wot a drama queen - 

MHO - DYOR

flame me, i dont care


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## numbercruncher (15 August 2007)

Oh i have no need to flame people Atomic ......

I like others are glad i dumped a month ago ....

This is bigger than an Inflation thing ....


.....


Good luck all ....


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## Lucky (15 August 2007)

numbercruncher said:


> The day of reckoning is drawing near, its been atleast a decade since we heard the saying ......
> 
> 
> 
> Cash Is King




May well be the case, but where will it be safe?


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## -merry (15 August 2007)

How is it that the effects of the subprime mortgage problem in the US is flowing into the resource sectors... Aren't most of our resources being exported to China? I would have thought that main sectors that would be affected would be the financial sector and possible retail as consumers have less disposable income.


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## Uncle Festivus (15 August 2007)

-merry said:


> ......as consumers have less disposable income.




....to buy goods from China.....to buy resources from Aus


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## numbercruncher (15 August 2007)

Uncle Festivus said:


> ....to buy goods from China.....to buy resources from Aus





.... to spend on over Inflated asset bubbles ....


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## dhukka (15 August 2007)

-merry said:


> How is it that the effects of the subprime mortgage problem in the US is flowing into the resource sectors... Aren't most of our resources being exported to China? I would have thought that main sectors that would be affected would be the financial sector and possible retail as consumers have less disposable income.




Merry,

When markets start selling off in a big way the most volatile stocks will usually get hit the hardest. Resources stocks have been historically and as you can see from today's action still are the most volatile stocks in the market. For good reason, since their earnings depend on commodity prices,which as we know can be extremely volatile. 

Yes we've all heard about the tremendous demand for commodities from China and BRIC, however if the credit crunch continues to deepen, as I suspect it will, rest assured China and other BRIC nations will be affected with knock on effects to Australian miners.


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## Mousie (15 August 2007)

Lucky said:


> May well be the case, but where will it be safe?




*GOLD*


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