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IMF Declares Australian Banks Won’t Collapse Under Subprime

Fears of Australia’s economy going into recession as a result of the US housing price collapse may be unfounded.

According to the International Monetary Fund (IMF), banks are not in danger of going belly-up, with Australian house prices only “moderately” overvalued.

As the IMF says “The results do not produce evidence of a significant over evaluation of house prices”.

Australians can sigh a breathe of relief over the news that puts our economy in relative safety, given the current global credit crisis.