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Tuesday, September 18, 2007

The US sub-prime mortgage crisis has prompted the Australian Government to consider tightening regulation of the nation's lenders. A parliamentary committee has identified a need for stronger regulation of the lending sector, to ensure that predatory lenders do not cause a liquidity crisis in Australia. The committee has recommended giving the Australian Securities & Investments Commission the power to prosecute predatory lenders who prey on vulnerable consumers. The mortgage industry has welcomed the proposed changes, however the Financial Services Union has some concerns
Someone has to stop people lending money to those who can't afford to pay it. But it is the consumers fault in the end and I don't think we can lay blame on the lenders. Consumers should know whether or not they will be able to afford the mortgage they are getting into, I don't like the current "victim" mentality around the place that a lot of borrowers are taking.

It is their OWN fault if they did not anticipate interest rates rising.

This has caused so much instability in the market there may be a few good buys out there but they are still few and far between.

Good luck

1 comment:

stock investing said...

Paul,

You are absolutely right. The person who can't afford paying mortgage against the money burrowed should need to think while taking the loan. Due to these people there has been big problem in credit market which has substantially worsen the financial situation not only in US but these things are happening a lot in other parts of world also which is big concerns for companies related to finance.

The US sub-prime issues has not been a big concern for only Australian stock market but it is big concern for stock market of other part of world also like emerging market India, Russia, Brazil etc.