Will Mortgage Stress Tank Aussie Banks? And Economy?
22nd May 2019: Australia Will Enter Worst Economic Recession In History Late 2019!
It will be Bank-Led, Greed-Fed. Result of decades of build-up in unregulated very poor home mortgage loans.
Massive mortgage stress is already home roosting in OZ. Much like USA Freddie Mac & Fannie Mae loan disasters that was prime mover into GFC # 1 in 2008-09.
In OZ, there are also multitude of other serious contributing factors, all of which have upset RBA's "pretty-picture" economic-financial realities.
So will one or two cuts in RBA's prime interest rate (at 1.5% record low), say 0.25% each, really deliver required stimulus to Australia's critically sick residential property market? And save Aussie banks' balance sheets from self-destruction?
IMO, NO!
Structural Reforms in banking/ financial sectors, post Hayne BRC, are urgently required but nowhere in sight! Worse, unregulated/self-regulated banks continue to ride rough-shot over customers.
Westpac's recent hike in credit card interest rates to 21.49% is typical of rampant usurious free-reign customer abuse
More so, when a minor credit card default-say few $000s-can trigger yet another $440,000 home loan mortgage default & thus household financial crisis. True reality stories abound.
