chaos everywhere! I wonder which banks will post a provision for toxic debts that will hit them in 1 year's time.

Yummy.....good pickings coming soon.

This is posted to no one in particular

1. If I owned a 400 sq ft studio in the middle of the sky somewhere, that is part of a 500 unit behemoth, i'd be very worried. I'd monitor my "investment" closely.

2. If I was an investor, I wonder.....how attractive would Damansar Avenue by TA Global be right now.....

3. If I were in a bank, there would be chaos everywhere. 500 to thousands of applications are pending. Transactions cannot go through, because "investors" are now asked to top up an additional 20% on top of their initial 10% downpayment. Customers had to forego their 10% downpayment upon signing of the S&P

4. If I were in a bank, I'd be more responsible. No more interest free loans, no more 5/95 deals, no more grand "bonanza campaigns". No more developers trying to get rid of their landbanks, to earn a quick buck.

5. If I were a bank like CIMB - i'd be VERY worried. They grew their balance sheet by 5 billion in the last 3 years due to property financing. I wonder how "toxic" thier portfolio is? I wonder how many "investors" own more than 3 properties each? I wonder how many % of CIMB's loan stock is for props under construction? I wonder how much faith CIMB put into our "respectable" valuation firms?

6. If I analysed the situation carefully, I'd realise that this LTV initiative wasn't done to "protect" investors or society per se. I'd venture a guess that Stress Testing has been done on all the banks, and BNM doesn't like what they see. The LTV Measure was put in place to protect our beautiful & credible banks, who practice "prudent lending guidelines".

Credit is the OXYGEN of our capital market.....The measure was put in place, so that the air we breathe won't turn toxic.

This post has been edited by Phoeni_142: Nov 5 2010, 04:21 PM