Aussie Govt follows suit sets up $4bill bailout
Submitted by jimboot on Sat, 09/27/2008 - 03:30
http://www.abc.net.au/news/stories/2008/09/27/2375930.htm
Economists say the Government's plan to buy into the mortgage market will help shore up competition in the home loan sector.
The amount of money available to lending institutions has dried up because of the global turmoil.
This has meant non-bank lenders have struggled because, unlike the banks, they do not have deposits to use to fund their loans.
The Government is trying to boost the market by making $4 billion available to lenders in exchange for mortgages.
TD Securities senior strategist Joshua Williamson says it will help revive struggling non-bank lenders.
Any Aussie economists here?
»
