Subprime Lending heads to Australia
Yes - the subprime lending issues hit Australia as well. No suprise that those collateral debt obligations otherwise known as mortgaged backed securities were purchased by everyone. National Australia Bank has now stated that they have lost over $798 million dollars American due to the subprime crisis. The bank CEO has stated that the reason they were purchased as that the mortgaged backed securities because were given AAA ratings. As well, National Australia Bank stock has fallen by at least 12.7 percent.
The Australian dollar has also dropped from $96.18 to $95.53. Cost of living has also increased at increasing rate, the most in 17 years.