This morning I found further evidence of a financial crash in the herald sun.
Jonathan Mott, an analyst at investment bank UBS, estimated in September that there were $500 billion of “liar loans” — where customers had made false claims in their mortgage applications — on the books of Australian banks.
This will place Australia's financial system in the same league of the US. The US was able to lower interest rates but
Australia will not have the luxury. If our banking system tries to deal with the financial crisis by lower rates our investors will take money offshore. Australia is stuck in a financial crisis with no tools to deal with the problem.
