ACT Mortgages faces criminal charges

NSW did the same thing back in the early ninties with HomeFund. As I recall it was an attempt to get public housing tenants to buy their homes; by the time it all turned to poo something like 35% of subsidised borrowers were in default [about twice the US sub-prime default rate].

It cost the NSW Government and the borrowers $Billions. FANMAC changed it’s name to RESIMAC, moved on and has continued to flourish.

mea culpa ‘couldn’t’

Indeed.

And Barack Obama as a ‘community advocate’ in Chicago also lobbied Citibank to provide loans to people who could afford to pay them.

Clown Killer said :

At what point in history did the most conservative and risk averse breed of capitalist – the banker – suddenly start thinking that it would be a grteat idea to give half million dollar mortgages to people with no income, no assets and no job?

Well in the US Clinton forced them to, because everyone needs to live in a home they own right?

And then the world didn’t immediately end (mostly because real estate values went through the roof with all the new loans and buying) so the rest of the world decided they’d been too cautious.

And now it all comes undone.

At what point in history did the most conservative and risk averse breed of capitalist – the banker – suddenly start thinking that it would be a grteat idea to give half million dollar mortgages to people with no income, no assets and no job?

On the up side, late Friday was a great time to be buying equities.

Jazz said :

nationalise the banks? are you sure you want that?

jakez is a hardcore libertarian who has the habit of satirising lefties in a way that only amuses himself.

How fabulous – Australia is now less Socialist-Left in its behaviour towards banks than the US under a Republican President.

nationalise the banks? are you sure you want that?

It’s this kind of thing that shows exactly why we are facing this liquidity crisis. These greedy fatcats have been let off the leash for too long and it’s time to rein them back in before it’s too late. NATIONALISE THE BANKS!

Gee this credit crunch really bites hard!