US housing crisis

[Silvana]

How will the housing crisis in the US and their stock market crashes affect interest rate rises here?

I am with Wizard and their source their money from GE. They don't source their funds from the capital markets via securitisation. Does this make a difference?

[andie_pandie]

Hi Silvana

Thanks for the question, I won't be able to give you my opinion on this question due to the fact that I am not a economist.

There has been a lot of speculation in the last few weeks with regards to the US market and how this may or may not impact the Australian Market.

Here is a article that makes interesting reading with regards to Commonwealth Banks opinion on the US Market.

http://www.smh.com.au/news/Business/Mortgage-market-differs-from-US-CBA/2007/08/15/1186857567470.html

I hope this article helps clarify the Australian market.

Thanks for your question.