as you know the problem with the US was they banks lent money people could not afford.
in australia banks would usualy lend a mortgage that would be at most half the amount of 1 persons income.. now they will lend you what can be paid off on two peoples ages. as a result people could spend more money and have bidded house prices up higher as the banks gave them tht spending power.
the banks the last 10 years have been pushing credit out to the western world so they can raise money to pay out the interest on the chinease deposits of all the workers over there. 15 years ago you never bought from shops on interest etc, you bought with layby, but banks have pushed us into a world of credit.
dont you think this is just as bad lending us money to buy a house at two peopoes incomes, when previously had had to be less than 1 persons income, has the banks not behaved just as bad in AU as the US?
arnt we rolling the same dice accross the same table in australia?
only difference is subprime triggered their bust early, our trigged is just wages disapearing into mortgages hitting a breaking point on the economy
