Here is something I was saying to my friends with a mortgage... I believe there is an 80% loan to value ratio (or similar) within loan agreements. If the value drops below this level, then the banks have the option to request additional money to boost this level. I don't think this was exercised in the 1990s style crash, but imagine if this happened this time.
How many home loaners would need to force sell to make up for this and then be left with a massive debt thereafter. Another friend told me that the Oz banks are now selling their housing debts to foreign companies and removing the obligations off their books. Imagine that these companies start to call in loans.
I am not sure the validity of either, and would like your take on this.
- Forums
- ASX - By Stock
- XJO
- XJO - Bear Posts only (Factors which might cause the markets to fall)
XJO - Bear Posts only (Factors which might cause the markets to fall), page-16962
-
- There are more pages in this discussion • 912 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add XJO (ASX) to my watchlist
(20min delay)
|
|||||
Last
8,208.9 |
Change
-60.900(0.74%) |
Mkt cap ! n/a |
Open | High | Low |
8,269.8 | 8,269.8 | 8,186.6 |
Featured News
XJO (ASX) Chart |
The Watchlist
TON
TRITON MINERALS LTD
Adrian Costello, Executive Director
Adrian Costello
Executive Director
Previous Video
Next Video
SPONSORED BY The Market Online