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Old 08-21-2007, 06:49 AM
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Re: Recession Risk Is Rising - Fed Better Get Aggressive Soon

What is classified as a sub prime loan in the USA? Here in Aus the easiest loans we call "low doc" loans which basically mean minimal information is required to get a loan through fast. Basic imcome statement and asset valuation is all thats required. Loan doesnt need to be insured either. We haven't had the same problem as in the US with sub prime loans but a lot of these low doc lenders borrow US funds at your lower interest rates to pass on these low interest rate loans cheaper than our banks. They've taken a beating recently with the sub prime problem in the USA.

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