Hours worked crashes, mortgage stress up - Page 4

http://www.talkfinance.net/f32/cba-r...nvestors-1510/ (CBA restricts property investors)

Read this Justin.......

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Its not whether you are right or wrong that matters, but how much money you make when you're right and how much you don't lose when you're wrong - 

 George Soros.
www.empireinvesting.com.au

Now why would a bank do that?

They wouldn't be getting nervous would they???

Cheers

Justin

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Economics in a Nutshell: Sure, it works in practice, but does it work in theory?

Amount able to be borrowed is halved. That is massive. I hope we see more of it.

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The essence of this convention — though it does not, of course, work out quite so simply — lies in assuming that the existing state of affairs will continue indefinitely, except in so far as we have specific reasons to expect a change. - John Maynard Keynes

Tis great news indeed Matt. Let's hope these hits keep on coming.

As I said in the thread discussing this announcement, I suspect we may be in the eye of the storm and a tipping point is not far from being reached.

The real question in my mind is, how much serfdom are people prepared to wear for poor property. 600K gets you a not even a nice 2 bedder on 250sqm in most parts of Sydney (within 15km of city centre). Are young people willing (forget able!) to submit themselves to many years of serfdom in full knowledge that the shakiness of the market may well mean they are literally working their entire life to pay off a debt that is worth more than their asset.

The truth is becoming more and more apparent. I feel sad for those who are about to be in a very bad life situation. I really do. Not their fault, but last in in any Ponzi scheme is the one who pays.

The latest Roy Morgan poll shows a jump in unemployment over the past couple of months, along with a drop in underemployment. So full-time jobs are being replaced with part-time ones, as per the article.
You'd think this would have to cause a drag on aggregate demand, and coupled with tighter lending criteria from the banks this could start to have a real effect on house prices.