Australian sub prime mortgage market.

none , that's the stupid bit , and an over reaction on the ASX by OS hedge funds taking profit to help with other losses . what has companies ( BHP , RIO ) pulling stuff ( resources ) out of the ground got to do with trailer trash bad debt ? nothing .

 

Not what I've read...that's the big problem; people THINK they're remote from it but most loans today aren't held by the lender they're bundled and sold as mortage-backed securities which are then used as collateral for bonds and then these are re-rated as CDOs which are heavily used by hedges AND private equity. You're right that companies like BHP that actually produce a tangible product should be resilient but MCQ is purely financial hence why I think your 'good times'might be fading fast.

Anyone want to start a poll on the state of things in 12mths - my bet is midrange (NOT top or bottom end) houses will be unsaleable except at firesale prices due to a glut in forced sales and ASX will be at or below 6000.

 

jesus...doom and gloom....to sink $$ into MBL or to not!

 

Macquarie owns a lot of infrustractures around the globe right?

 

OCT 05
MBL $66
BHP $21 ( more money than know what to do with ) will continue to run , china not finished taking yet .
RIO $58

no need to buy every stock that makes up the ASX , just the goods ones .

in and out , that's the trick , let the good times roll ( isn't that in a song ? cars , if i am not mistaken ) LOL

 

umm.... Chinese are slowly moving away from Australia for Ion Ore, start to get a lot more from Brazil. Not to say that they won't be buying any from Australia. But i don't think there'd be more.

 

Buys and sells them like everything

Rome Airports good example owned for 3 years booked 2billion profit.

Problem is some of their funds have exposure in sub prime debt.

Question is how much?

Their "Fortress fund" is only worth about $800 milion and this is the one the markets have been concerned with..so its not a large amount by any stretch so it seems that losses maybe contained.

However Caveat emptor at the moment.....plenty of volatility in the short term.

 

fair enough.

 

floating cash registers...

skip the add , go to coal ships to newcastle

http://media.smh.com.au/?rid=29862&sy=smh&source=google.com.au%2Fsearch%3Fhl%3Den%26q%3Dcoal%2Bships%2Boff%2Bnewcastle%26btnG%3DGoogle%2BSearch%26meta%3D

 

dare i say MBL $120 in 12 months

 

Chinese government is addressing its pollution crisis, more regulations on pollution control and energy saving will need manufactures find cheaper alternatives than suppliers such as Australia. one of the reasons why Chinese are spending money in Africa and other third world nations, because thats where they going to dig things cheaper next.

 

PM sent

 

Who knows?

The world financial crisis is just that!

Having said that there is a tremendous amount of knee jerk reaction going on.....reality is that the dollar is being supported by China.

In Australia we are very very lucky at the moment and especially so in the States that are benefiting from th resources boom.

I think the best analogy is that certain parts of Australia are now experiencing what many parts of Asia have done for the last twenty years.

But it is also the case that we are so intertwined and dependant on other nations that problems there can still be felt here. Of this there is no doubt.

The sub prime fiasco has a long way to go, I imagine three months at least and there is money to be made on the lows and highs that will no doubt follow.

 

More like has a lot of loans backed by securities (read: investors money as well as bonds and those pesky CDOs) to have their name on infrastructure deeds. Also have to consider there are a lot of separate bits to Mcq - office and infrastructure trusts are different to the pure banking entity.

 

Anyone catch the 60 mins spot on mortgages/over committed folk?

strugglers loaning 100% + of the house value, barely keeping up the payments then one partner loses job....smash

couples struggling to keep payments up and credit card debt spirals...smash

 

yesterdays paper said even folks in hamilton are stretching themselves , and may get caught out by increases to interest rates . find that hard to believe .

 

This is not a good sign....

"The Fed says that it made the exemption in the public interest, because it allows Citibank to get liquidity to the brokerage in "the most rapid and cost-effective manner possible."

So, how serious is this rule-bending? Very. One of the central tenets of banking regulation is that banks with federally insured deposits should never be over-exposed to brokerage subsidiaries; indeed, for decades financial institutions were legally required to keep the two units completely separate. This move by the Fed eats away at the principle."

http://money.cnn.com/2007/08/24/magazines/fortune/eavis_citigroup.fortune/index.htm?postversion=2007082415


We are talking about Citibank & BoA here, not Pyramid Building Society [Farrow]

Ciao

M

 

And this [if true] is worse, lots worse.....

"$4.5billion bet on another 9/11 within 4 weeks"

http://mparent7777-2.blogspot.com/2007/08/45b-bet-on-another-911-within-4-weeks.html

Ciao

,M

 

Post#288 on:

http://www.ferrarichat.com/forum/showthread.php?t=162464&page=15

 

Interesting site MPMP.....to follow on from your link, check out this:

http://mparent7777-2.blogspot.com/2007/08/mystery-trader-bets-market-will-crash.html

So now we have someone betting the US market crashing by 21/09, and an investor in Europe betting on a crash there by the end of September - no doubt a flow on effect from the US crash....

Should be an interesting month with 9/11 just around the corner as well - the above won't help sentiment.

 

plenty of these go around all the time . total BS .

 

http://www2.standardandpoors.com/spf/pdf/index/csnational_release_082857.pdf

Essentially US house prices are continuing to decline across the board except in regions that are experience beyond the norm growth due to local factors.

Probably a good lesson there.

 

so i read in todays week-end australian that maq bank profit is through the roof , knew that earlier in the week , and their exposure to the US sub prime is less than first thought LOL . i think that's what i said previously . roll on to $100 + .