Cairns Lockie Mortgage Commentary (Scoop.co.nz)
Cairns Lockie Mortgage Commentary (Scoop.co.nz)
Welcome to the second fortnightly Cairns Lockie Mortgage Commentary for 2009. We aim to keep you informed on developments at Cairns Lockie, Home Loans and the mortgage market in general.
Why bank lending can never be the same again
The government has said on a number of occasions that it wants the banks to resume lending money to home-buyers and small businesses at the same levels as before the start of the credit crunch. There’s only one problem: doing so would be a sure-fire way to bankrupt the banks. And either the government doesn’t know it (in which case it’s stupid), or it does know it (in which case it’s lying to the public). If you want to understand why bank lending can never be the same, look no further than Ro