Sg Banks Overlent in Property Bubble. Siao Liao Loh!

[DerekLeung]

'Singapore banks, in particular, appear to have over-lent into an over-built property bubble. The credit cycle has now clearly turned and higher rates will exacerbate inevitable asset quality issues,' it said.
I am trying to make out what does it means "higher rates will exacerbate inevitable asset quality issues"

Higher interest rates to prevale to access credit worthiness of clients. Protecting banks long term security.

Asset quality issues bring out the real "market value" not the intended original asking price whether first time buyer, second , third so on and so forth. Who loses 100K -300K plus minus for every transaction depending on time of sale of quality housing. Prime and sub-prime for simplicity.

For every 100K-300K difference will cause a triggering effect to banks and demand side of property. Either way it will shake the economy with unemployment !

 

[Nice-Gook]

I think ignorance of the markets could have been reduced if there was transparency and openess enforced by the law to these banks. )


<style></style>The real question here is NOT the role of banks in Singapore.They are merely tools.The hands behind the inflated property in Singapore is the government itself.The gvernment is the biggest property owner in Singapore.No prize for guessing the ultimate beneficiary.

 

[Mentri_Besar_emas]

This will trigger the all too familiar subprime crisis in short? Did not the BEST paid ministers have the helicopter vision to foresee this? Or were they blinded by their insatiable greed and assumption that come what may, they're untouchable to heck care?

fully agree wif u . Some may wayangwayang to act as if they care, like wooden recently.

 

[DerekLeung]

fully agree wif u . Some may wayangwayang to act as if they care, like wooden recently.

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Why always mobilise wooden Holy Goh for demage control ?

 

[Nice-Gook]

fully agree wif u . Some may wayangwayang to act as if they care, like wooden recently.

I beg to differ.Given that the inflated property driven by vested Government's interest in sinkieland it is NOT exactly the same scenario as that of the US.PAP will pass the buck to the peasants but the banks will survive.Locals banks would be saved from carrying the toxic assets but the people would suffer.Remember CLOB?

 

[halsey02]

No I don't agree in this case, Lehman Brother case I will blame the Bank and MAS but property, I blame the buyer themselves, May are speculators, no need to shed a tear for them, nor blame anyone.

Caveat emptor...I agree with you on this on the buyers, but did these people pushing these fianancial products to the guillible elderly too pushy?, did they inform them of the risks involved?, or just keep highlighting the high returns it will get, in opposed to placing their money in Bank Deposits, which yield low risks, and lower returns (interest rate below 1% p.a.)?

The speculators we can't shed a tear, but those old greedy gullible elderly; we must pity!. The Banks or Financial Houses that sold these products, need not have to pay them a single cent, but they have a duty to restore trust in the system, even though having to take a loss. Eventually this will lead to more credit tigthening...and retrenchments...and so forth!.

In times like this, nobody is winning...a lucky few , maybe!, and fewere who can boast to make a couple of million dollars...

But for the rest..it is all BURNT!..and that is not the end of the matter:(

 

[Nice-Gook]

Caveat emptor...I agree with you on this on the buyers, )

Buyers beware? Really!...Let me extend that logic.Remember COE? Market force in play right.Say Marlboro Tan applies the same logic to HDB.Let the highest bidder gets his home.Or even to our daily transportation in MRT or public buses.Among the few hundred awaiting to take the same train to work every morning.Let the highest bidders get into the first train and so on.....thats market forces ...so,what choice would buyers than have?

Let me rephrase.For every hub of HDB flats there are private high rise buildings right amongst it.It not like Holland Road as premium land and Queestown as heartlanders anymore.The Leegime has now created this so called ''market-force'' residential properties.Private apartments and HDB side by side.So,any increase in private property amounts to an increase in the prices of HDB flats.Mico managing sinkie propery prices.Just as COE pricings.Where than in caveat emptor?