"just my views...and i may be wrong..lots of capital chasing some kind of yield."
But Ducky, are they (Australian financial institutions) packaging up junk and selling it all over the world and too each other?
MBS was the main cause imo amongst a few others.
"There were many causes of the crisis, with commentators assigning different levels of blame to financial institutions, regulators, credit agencies, government housing policies, and consumers, among others.[3] A proximate cause was the rise in subprime lending. The percentage of lower-quality subprime mortgages originated during a given year rose from the historical 8% or lower range to approximately 20% from 2004 to 2006, with much higher ratios in some parts of the U.S.[4][5] A high percentage of these subprime mortgages, over 90% in 2006 for example, were adjustable-rate mortgages..."
Just take a look at the US subprime mortgage originations from 04-06...and the leveraged way these were on sold into tranches disguising the risks of many within the packages.
Michael Lewis has some books on the subject "Liars Poker" was a great read.
