[DrBang]

(Shit!)

This is what we have all been worried about. The local TPTB talk it up and say how good things are not to worry. What is our real situation?

Dr Bang

[like_the_dinosaurs]

It's that bloody kevin rudd and those oil companies.
lol

I was wondering how long we could keep up the facade well i guess we all know now.

[alokin]

Aren't the interest rates on mortgages hger than in the US?
Then it gets worse.
On the other hand I guess that there is less artificial money around as Australia sells commodities and that's real wealth.
How are personal a public depth level compared to the US?

Still there is nothing but some articles in papers. I, personally don't know anyone in foreclosure. But I know lots of people who don't pay a cent more on their mortgages than the monthly rate.

[like_the_dinosaurs]

Yeh there a lot higher, banks currently lend at about 8.5 to 9.0%.

We are almost identical to the U.S apart from low federal government debt (State and local councils are up to their ears though) and the banks didn't lend money to every tom dick and harry.

[alokin]

But here there are subprime mortgages as well. Someone told me if you have got only 10% down you must pay an extra "insurance" and then they lend you the money. This is subprime?

[Pretorian]

Do you know many Aussies who hold their savings in other currency? till you do its probably not too bad.

[essex]

The NZ Herald generally agrees with the broad thrust of this article.
http://blogs.msn.nzherald.co.nz/blog/li ... id=1502542
The dairy boom in NZ could sour very quickly if consumers cut back. Who will drive X miles/Ks in a big pickup to buy fast food with NZ cheese in it when oil hits $200 ? Demand for dairy products here has dropped significantly. The NZ economy is very vulnerable IMO.