will the banks revalue houses and loans, page-7

It's an interesting concept.

The Banks believe in the "Head in the Sand" policy of house values. Essentially, as long as payments are up to date they don't want to know. Add to that the fact that the "House" is not on the market, then it's value never needs to be known. And, of course, with guaranteed inflation from Government incompetence, House prices trend up in dollar terms over time.

This contrasts remarkably with their policies on Margin Loans.

Despite the fact that the loan not being in arrears and the parcel of shares being strongly held and not on the market,they value all share portfolios on the price of the weakest holder. They then panic and force sales destroying all value. Banks have been the cause and the blame for huge value destruction in the Share Market.

If we were to apply the same consistent policy to house mortgages, all houses would be re valued instantly there was a default in the suburb. Within 3 days, all revalued mortgages would have to bring their Loan ratios back into line or the House would be sold the next day.

Needless to say this is ridiculous.

How does it then apply to one asset class and not the other.

Or are Banks run by mad men?