Great article from the Rolling stone.
Great article from the Rolling stone.
Good old US of A
The more I hear about them, the more certain I am that they'll once again manage to bring the world undone with their dodgy ways.
Sadly, along with that certainty goes a fairly deep disliking for the country as a whole. Sad really.
Very good reading though. I like the guys writing style.
It's midnight and I just finished reading the Rolling Stone story........ on what is one of the most stinking, corrupt scam of all time. (but perhaps I've been a little understated here.)
I did know that much of what has happened in the home loan crisis of America stank. I just didn't appreciate how utterly criminal the banks seem to have been and how this criminal behavior is still happening and being supported by the states.
I'm going to flick it on to some friends. Really hope other members on this forum take the time to read it, digest it, and wonder exactly what sort of financial system we have. The fact is if the big end of town is getting away with such criminal activity now in what universe will our interests be protected if/when all the financial balls hit the ground ?
Perhaps it's a story some of our political leaders should read and be asked to comment on?
Just for interest... As you go through the above article in Rolling Stone there are a number of links to other stories by the writer about the financial chicanery that is now America.
I just can't see how this will have a remote chance of a happy ending and how we can escape the fallout..
Just give it time, CBA/NAB/Westpac & ANZ will be doing this soon
This practise is to some extent already being used by ANZ and i forgot the other bank that use debt collectors who constantly call up debtor's and make threats to expose the financial situation of the individuals to family, friends ect.
This along with figures presented last night showing lending is at a 5 year low right now, this leads me to think either people are saving all of a sudden(i think some are but not as a whole we are not) or we are maxed out on credit.
Without going to much into the figures ect, i don't really believe the question is how i come to this conclusion but rather do you think they would do it any other way? they need to make profits for shareholders and are not a charity organisation.
I should also say i didn't mean to 'hijack' this thread or anything but some people seem to think that "it's different here" and this sort of thing would never happen in Australia.
I simply wanted to make a statement rather than starting a whole conversation about what i said, but are more than happy to explain why i said what i did
great article slipperz thanks for the link
It's true that Australia banks have not undertaken the types and extent of systemic fraud that has happened in America. I still believe there is cause for concern on a number of frontsCan't say I've heard of any of our banks engaging in robo signing and fraudulant foreclosure practices. Feel free to enlighten me though!
professor_frink is offline Report Post Reply With Quote
1) A collapse in the American financial system can only be bad news for us. Obviously....
2) We already know that many local institutions bought the poison debt packages sold by Morgam Sahs ect. So we have already seen a direct financial hit
3) I think the quality and creditworthiness of many housing loans made in the Australian housing market is suspect. In particular many mortgage brokers have been creative with their clients income figures to get the loans past the banks (and get their commissions) and the banks have not looked closely because they don't want to find holes. Everyone is believing that the rise in housing values will protect their **** if the loan holder falls over.
4) There has been a very big rise in peoples other debts apart from housing. This makes their financial situation even more precarious and of course the risk to the economy heightens if there is any sort of slowdown
5) And finally on almost any analysis the Australian housing market is overpriced. This is putting extreme pressure on would be borrowers while increases in interest rates is screwing those already stretched to the limit.
Steve Keens anlaysis in Debt watch is an eyeopener on the rise and make up of Australian debt levels. I suggest the role of financial institutions in encouraging this situation will be a factor in the inevitable contraction/collapse.
Inside Steve Keens ebt blog there is a detailed recent review of the role of the banks in pushing more and poorer quality debt onto people. It's written on 9th November.
More competition or less debt?
Posted on November 9, 2010 by Steve Keen
As usual, I’ll be putting an argument that is contrary to popular opinion on the need for more competition I the banking sector. So to clarify the issue, here’s a quick poll: who thinks that Australia doesn’t have enough debt?
Nobody? OK, now let’s discuss the “need” for more competition in the banking sector.
The raging debate is missing the point–Hockey and the Coalition are right to go after the banks, but they’ve made a mistake in suggesting that the sector’s ills would be cured by more competition. In fact, we allowed too much competition in the 1980s, and again in the 1990s. The outcome, both times, was too much debt—firstly for businesses, and then for households. That’s the sector’s real problem, and adding a third dose of competition won’t fix it.
Last edited by basilio; 16th-November-2010 at 09:55 AM. Reason: further infromation from Steve Keens site
Hopefully this will assist you Julia.
It was actually ANZ and NAB, it was not conveniantly forgotten now lets get to you Julia since your possibly a ANZ employee.. ohh wait a second thats a assumption just like you made
See what i did there?
You know that the article was about US financial institutions literally breaking the law, blatantly and repeatedy on a massive scale. Right? Forging documentation, breaching contractual obligations, tax fraud, destroying evidence, perverting of the course of justice, all with the apparent collusion of the authorities. Intentionally pressuring hundreds of thousands of people to, in effect, destroy themselves financially in what the institutions themselves knew were doomed loans.
And you're, what? Accusing ANZ of being mean?
C'mon man, RTFA.
I think you will probably find while things are good and everything's fine you won't find many complaints, but when things turn sour that's when all the truth comes out like we have seen in the US.
You remember seeing any of this sort of thing in the media in 2004-2006 in the US？besides the odd few people.
I will answer with a movie quote:
It ain't the same ****in' ballpark, it ain't the same league, it ain't even the same ****in' sport.
Another side of the US housing situation: the shadow inventory.
...and whatever their commie background, the Exiled dudes are good gonzos. That's from June of last year.
I have no idea if all of this is true, mind. I don't know squat. But I can say I'm glad to be moving over to nice safe currency scalping. Buy-and-hold scares the crap out of me.