Hi
holding 2 banks (CBA is one of them) in small pension fund: listened to a Canadian analyst, thinks our (Australian) banks are overextended into mortgages which could default, for similar reasons American banks got smashed in 200; i.e. mortgages given to people who could not afford the repayments- I reiterate
for two reasons:
people are 'lying' in their statements when applying for mortgages and are overextended,
real estate prices are too high and the boom everyone is betting will happen and thus overextending is not going to happen; thus they will default on mortages.
Thinking of talking to my 'manager', even though it's only a small fund.
Taurisk
