contrary what spruikers might be telling you, aussie families DON'T HAVE any money. (isn't your central bank already planing to throw you a bone with interest?)
And saving are 'up the not so clear creek' as well (for most)
Economy is nowhere near good shape ! (numbers and calculations in the article prove it)
...........Today?s The Age reports, ?Housing shows fresh signs of mortgage stress?.
The article claims:
?Arrears on the home loans that back prime residential mortgage-backed securities have climbed to their highest level since April 2009 as more evidence emerged of Australians battling financial stress.
?Ratings agency Standard & Poor?s said loans underlying Australian RMBS that were more than 30 days in arrears jumped to 1.59 per cent in January, up from 1.38 per cent in December.
?Arrears for sub-prime loans backing RMBS jumped 126 basis points to 11.45 per cent??
And that?s just on RMBS. You have to wonder what the banks are hiding about the delinquencies on the loans held on their balance sheets. But that?s not all. The article continues:
?The survey findings [by BankWest] revealed 31 per cent of Australians are unfit insofar as they have little or no savings, an over-reliance on debt, few assets, inadequate insurance and high housing costs relative to their income.
?Only 17 per cent were found to be financially fit, that is had regular savings, low housing costs, a range of insurance and high asset levels relative to debt and income.?
Just as we?re being proved right on the housing crash, we?ll be proved right on this point too. As you know, the spruikers have always claimed that house prices won?t fall unless there is a big rise in unemployment and interest rates.
We showed you a chart a couple of weeks back showing how the US housing crash started at least eighteen months before unemployment started to sky-rocket.
In fact, at the time the US housing crash started, US unemployment was under 5%? roughly where Australian unemployment is right now !
