banks have not stopped lending, page-2

  1. 9,246 Posts.
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    Of course people have stopped, because so many people got trapped in the frenzy that if  you didn't get in you would miss out, and anyone who has done some market research knows how addictive a rising market can be and so a lot of people have bought houses at prices way too high, and as with any market in time  it eventually starts to go the other way. I was very wary when they started to refer to the housing market as a commodity sector rather than a long term investment for one's livelihood. Something that moves so fast in value will come back with the same movement eventually.

    People are now not on cloud nine, and I guess the recent banking stuff hasn't helped. but the real danger is if Australia has a recession and people lose their jobs then they have more risk of defaulting on their loans, the RBA head also talked about maybe lowering the interest rate forecast. That has really made people think that things might not be so she'll be right mate anymore.

    Not knowing what might happen can be worse than when and if it does and you had the chance to sell to pay your Bank loan back. Scary stuff


 
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