Dhuyyou are wrong, it is a known fact Mortgage brokers were...

Dhuy

you are wrong, it is a known fact Mortgage brokers were selling subprime loans to normal people who could afford prime loans,

this is because the broker got better kick backs of it, and the banks were also encouraging their mortgage sellers to do this by rewarding them more so as to get higher interest repayments.

that is why so many people have these mortgages in the US.

The banks were happy to do this as the plan was if the person couldnt pay they would just sell their house, but they made the same misteak as warnie, in that they assumed house prices would keep climbing, which they didnt. so the banks starting taking these loss's when it came time to sell.

that is what subprime is all about. now because so much money has been lost, debt costs more.. and over the next 3 years there is more of these loans to explode on their full rate which will result in more defaulters.. pushing the cost of debt up. making it more expensive for our banks to borrow on charging it to us.

rates will keep climbing for 3 years because of this, and in addition when Australian normal mortgages start to default. and the bank cant get its money back, our banks then have to pay the interest on these loans back over seas pushing the cost of debt up more in Australia.

this has easily gor 3 - 4 years before the blood letting stops and is only the start