Its not just the risk its also in a to hard basket for banks. Banks dont have bank managers making loans they farm it out to say dubai where a mathmatical equation is applied. So if you are buying a house and are on salary, if you are a small business its harder, if you have income from investing harder again. my house is on 2.04% fixed and i bought a commercial premises 2.89% fixed for 5 years. easy to understand if i mess up they keep my house.
Something like this complete different kettle of fish a bank wont touch it. What they do is kick it to someone else sometimes they even own that entity. A much higher interest rate is charged due to complexity. This is how our finance system works, i dont like it due to the increased speculation in housing and reduced incentive to start business but thats a different conversation.
Like it or not we have the money now and it is what it is.
VEN Price at posting:
9.9¢ Sentiment: Buy Disclosure: Held
