excuses excuses, page-62

Any write offs that the banks make are to made against commercial facilities. With the implosions of several companies in Australia, the exposure that banks have are going to make up almost entirely of these types of loans. ANZ, and NAB in particular seem to have had larger exposure to these companies, and I would tend to suggest there will be more where they come from. I work for a lending bank, we add 1.5% margin to all loans for servicing. Agreed there is pockets in Sydney and Melbourne that are doing it tough, but this is nothing compared to the subprime loans in the US. These were discounted interest loans, so they could afford them, after 2 year honeymoon period these loans become above standard rate loans... They were deemed to failure, and the sales of these types of loans were ferocious. They were bundled up and sold off, to fund further loans....

Agreed again, that the cost of lending has gone up for the banks because of the Sub prime crisis, but that does not mean that there is a sub prime crisis here.

Just my thoughts