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BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

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More from Nick Hubble: People are walking away with home and no mortgage.

Posted by on in From My Window
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--The back story is even more ridiculous. The state guaranteed Alcoa 'mates rates' on power and then sold its power infrastructure. The difference between the market rate and Alcoa's is footed by the taxpayer. Of course, just to make things more absurd, the government also decided to levy large power users.

--You can't make this stuff up.

--If you're wondering how this is going to trigger a global financial crisis, you haven't been reading about Australia's secret subprime scandal. In short, the loss of jobs in Geelong is beginning to get serious. The government is in crisis talks. The worsening situation poses a serious risk to house prices in the area.

--If house prices take a hit in Geelong, that could prove to be the canary in the coalmine for the rest of Australia. It has the potential to trigger pretty much the same subprime crisis here in Australia as in the US by making people realise what's brewing for the rest of the country. Remember, subprime and the housing bubble broke out in a select few states in the US before going national, and then global. These crises always break out on the fringes and then go mainstream.

--So how could Melbourne's satellite city trigger a major financial crisis? And is there really a sub-prime style crisis hidden away in Australia's housing industry? Yes, and it's not just overpriced homes that are the issue. Australia has many billions of dollars in sub-prime loans. It's just that they're masquerading as prime ones in an even cleverer way than the Americans managed to pull off.

--The Americans securitised the mortgages and turned them into AAA rated CDOs. Here in Australia, mortgage brokers simply changed people's loan applications to get them past lending standards. They added some income here, and some assets there, until their client got the loan. The result is that nobody knows a prime loan from a subprime loan.

--As long as house prices rise, that isn't a problem. People just sell out if they get into trouble. But if house prices fall in Geelong, the problem could be exposed as it was in California and Nevada. People will realise that the marginal property buyer cannot afford what they are buying. And once property investors realise that much of the demand for housing around Australia comes from people who would never get loans without document fraud, they will panic.

--Worse still, the courts have decided the banks should bear the losses when borrowers are victims of manipulated loan applications. People are walking away with a home and no mortgage as the courts and ombudsmen services wipe the slate clean. So if the law were applied to all mortgages, the Australian banking industry could face billions in write downs. Using one estimate from the consumer watchdog that exposed all this, it could be around $200 billion in mortgages affected. That's easily enough to cause a major banking crisis.

--To find out more, and discover how to protect yourself from the crash that will happen as a result, click here.

Regards,

Nick Hubble+
for The Daily Reckoning Australia

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  • doyla66
    doyla66 Wednesday, 19 February 2014

    And here go more jobs - today's news - Telstra slashes 800 jobs in Sensis overhaul

  • doyla66
    doyla66 Wednesday, 19 February 2014

    Gfs246

    The country has fallen apart.
    The banks are fraudsters.
    People are loosing homes every week
    Depression statistic are through the roof
    People can no longer have the Aussie dream
    People can no longer live in peace
    People are being bullied to the point where they would rather die
    FOS are useless
    COSL are a waste of space
    ASIC was torne to shreds today...... We can only pray , they fix all the wrong they have done.
    Continue the fight
    We are so close to the RC
    The senators have clearly had enough.
    418 submissions.......way to go BFCSA

  • doyla66
    doyla66 Wednesday, 19 February 2014

    Warning - more secrets exposed

    Article in todays Sydney Telegraph by Alex Malley - A MISSED PAYMENT COULD BE A BLACK MARK FOREVER. All about how under this revamped Privacy Act to not pay your cr card or car payment (or any bill from any licenced credit provider) more than 5 days after the due date means an instant black mark on our credit record! Goes on to say we could all be forgiven for having missed news of this latest "reform" for it's all wrapped up in a host of sweeping changes to the Privacy Act coming into effect next month re something which will have enormous ramifications for all of us and the reforms are retrospective and date back to December 2012! AND....... the banks who forced credit down the throats of borrowers unchecked and helped spark the GFC will reap the rewards with access to a whole new suite of information about your credit record! Hello - do we still live in Australia or has the country been renamed to Alcatraz?????

  • doyla66
    doyla66 Wednesday, 19 February 2014

    Betcha Nab won't give a rats. They will just dismiss these facts. How much do you want? We will make the application fit our criteria.
    Don't worry we can fudge figures as good as all the other fraudster banksters. A little tweek here a bigger tweek there and whoppee doo your money is on the way.

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