waffle is coming on here claiming there is no securitisation of Aussie mortgages, and the such.
All aussie banks are stuffed to the gills with residential mortgages, about 70% of their book, and the whole world knows it.
Any sign of RE weakness and the hedgies and instos will short the bejesus outa aussie banks just like they did Lehmann, at that point Aussie banks' market cap will be nothing more than a pig to be slaughtered. Which is why Treasury is openly buying RMBS assets in broad daylight, because they know the alternative of not keep pumping the leaky tyre, and they are sh**ting bricks.
Aussie RE is effectively propped up artificially on 4 fronts by Treasury RMBS purchases, NG accounting, first home buyers grants and foreigners.
