Lend Lease LLC, page-60

A$ spot price wa shorted down to 66 cents several weeks ago. Was a flash crash that only lasted a short time. I did not discuss the big four banks who have invested about 60% of their loan portfolio into local real estate. They holld a massive number of interst only liar loans that are valued at issue price in a falling market. These loans reset as principal and interest loans with drastically higher repayment rates.these resets will roll into the market over the next three years and imho will destroy bank balance sheets, as borrowers default. I read that up to 400,000 borrowers are already underwater with negative equity with prices pulling back about 10%. What happens when Sydney prices approach falls of 20% and io loan holders try to refinance? the big four banks will get slaughtered.