Problems remain, but NAB clear
(30 July 2008 – Australia) NAB CEO, John Stewart, has said that the bank has no more exposure to the US housing markets, but expects the overall problem to worsen.
After NAB booked an $830 million provision due to a re-rating of debt, Stewart told ABC TV that this is the bottom for the bank due housing in the US because they are now cleared out.
However, Stewart said that things are going to get worse in the US housing market.
There are more than 18 million vacant properties for sale in the United States at the moment. That's more than the whole housing stock of Australia, he detailed, describing the extent of the problem.
Stewart said that house prices were falling even before the start of the housing crisis in America due to an oversupply and overproduction of houses.
The problem is now moving in to other asset classes and the problem will be exacerbated by even more home owners selling their houses, he said.
Stewart concluded that it could therefore be some time before the US economy recovers from this.
However, Stewart said that things are going to get worse in the US housing market.
There are more than 18 million vacant properties for sale in the United States at the moment. That's more than the whole housing stock of Australia, he detailed, describing the extent of the problem.
Stewart said that house prices were falling even before the start of the housing crisis in America due to an oversupply and overproduction of houses.
The problem is now moving in to other asset classes and the problem will be exacerbated by even more home owners selling their houses, he said.
Stewart concluded that it could therefore be some time before the US economy recovers from this.
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