Dont be so convinced about the strength of the borrowers in Aus....

Dont be so convinced about the strength of the borrowers in Aus. The banks outsourced a bulk of their lending (unloading loans officers) to finance brokers. The finance brokers rarely if ever get paid if the customer doesnt get the loan. Finance Brokers up until recently poorly regulated (say no more) and like all of us needing to earn a living. Lets just say when the tide goes out we get to see the naked swimmers! Low doc or no doc loans is the Aussie equivalent of LIAR and NINJA loans. THe high cost of property both residential and commercial is choking the economy and until we get a new cost structure it is death by suffocation. The government is getting a massive pay cut at the moment as tax receipts plummet. Australia is not different but maybe we party a bit longer than the rest!