sub prime isnt the problem as is unrelated to ANZs woes although...

sub prime isnt the problem as is unrelated to ANZs woes although we are on par with the US when you compare debt to income










the problems the banks have is they have the benefit of massive lending expansion based on unsustainable RE prices, take this price growth away and the banks have very little room move, even if prices drop by 10% it severely impacts all the banks earnings

anyway thats an aside the real story is nearly all the legacy monolines are dead men walking, they are on death row waiting their fate, for ANZ to admit such a large exposure (one that Ive been predicting for some time) places them in a very tough spot

Like I suggested write to JS ad publish answer here Im pretty sure he would love to answer

sub prime as act one in a three act play