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National Australia Bank Will Shock Wall Street
The National Australia Bank’s decision to write off 90% of its US conduit loans will have dramatic repercussions around the world. Wall Street will be deeply shocked when they understand the repercussions of what NAB has done. US banks have written down $450 billion in bad housing loans. The revelation from NAB means that they will now certainly need to take provisions to $1,000 billion. But write-downs of $1,300 billion and perhaps even more are in the cards. A US recession is now locked in, but more alarmingly, these loan losses point to the possibility of a depression.
