Quote:
Originally Posted by Zythryn
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On its own, this would have a minor effect on the US economy. Combined with high oil prices and a low dollar, we could be in for quite the ride  |
The thing is it is not just a USA problem. Many loans were sold on to other banks so banks here and in many other countriesare exposed and also stand to make losses.
It is said when the US economy sneezes the rest of the world catches cold.
I don't think the exposure is too bad here but institutions seem to be keeping quiet about it so it is hard to know for sure.
Our inflation figures are up and both sides in the next election are promising tax cuts so that won't help. As inflation goes up so o does housing interest rates. It is now beginning to bite in our mortgage belt as people are selling up. We just pray the Chinese keep wanting us to dig up Australia and post it to them.
The prediction is US$ AUD$ parity by Christmas so expect a lot of Aussie tourist to spend money & complain about your beer soon.
Always willing to help the Yanks out when they get in over their heads.
