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Crash is coming, warns top investor Jason Dowling and Peter Weekes THE man responsible for investing $41 billion of the State's money has warned mum-and-dad investors to prepare for a massive sharemarket crash. He says a dramatic downturn is inevitable as the rapid rate of investment is unsustainable, and the repercussions of the $300 billion subprime lending crisis in the US are yet to be felt fully. State Treasury has revealed that Victoria looks set to lose just $1.9 million directly from the subprime fiasco. But the chief investment officer of the Victorian Funds Management Corporation, Leo de Bever, is taking no chances, telling The Sunday Age that he is managing the risk of further losses "as best as humanly possible" by shifting investments to safer options.
Mr de Bever's comments come after last week's running stoush in Parliament between Opposition Leader Ted Baillieu and Premier John Brumby over Victoria's exposure to the US financial crisis. Mr Baillieu warned that millions of dollars of taxpayers' money was at risk and accused the Premier of failing to come clean about potential losses. "We know hospitals and local governments have been exposed, we know there is a level of exposure to the VFMC, and John Brumby won't even provide a basic reporting process," Mr Baillieu told The Sunday Age.
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