As if the thousands of jobs that will be gone in the banking sector soon doesn't give a clue, the revelation from Westpac is no accident. The AGM will happen in 6 months and they must explain how bad debts can mushroom so quickly.
"loans to investment" ratcheted up to $116.8bn "loans to owner-occupied" revised down to $165.2bn
42% of all mortgages are lent to property flippers !
No prize for guessing the loan profile of the other Big 4.
The bulls (in reality they are bears pretending they aren't wetting their pants) in denial always clutch on a straw about how the Aussie battler will do almost anything to hang on to their own homes. Well never mind there is a fair amount of owner-occupiers with their heads ALREADY below water based on skyrocketing reposessions.
However, this is absolutely scary. 42% of all mortages were taken out by fearful speculators who would sell in a hearbeat as their debt level remains the same, but while their assets values are wiped. OMG !
Now you know why some here on the forum keep saying to one another "DON'T LISTEN TO THE BEARS. THERE ARE PLENTY OF BARGAINS".
