[DrBang]

We have all been watching what has been going down in the US and UK in the banking sector. We all agree there are some very serious consequences on the ground right now with a momentum which can't be stopped without serious pain.

What of Australian banks? What kind of risk are they subject to due to "the way things are done.."?

We have 4 big banks. In my opinion, the National Australia Bank (NAB) has been the most vulnerable.

news

Does anyone have any information on this important issue?

Kind Regards
Dr Bang

[turner]

I would also like to hear people's views. It's hard to find much independant analysis of what is going on in Australia. Perhaps Micki could provide some info, or good links?

[alokin]

No getting informed in Australia is a though task, our newspaper is "Courier Mail".
There was something in lateline you can read it online.

I guess that the crisis will be as severe as in the US. Just look around: look at the houses, at the house prices, at the cars and boats, swimming pool, fast food outlets and then look at the salaries (they are admittedly lots better than in the US).
It simply does not fit together.

When I tell people that we are paying off our mortgage, quicker than we must no one told me that they're doing the same, they all admit that they don't see the mortgage going down.

But I cannot guess when the bubble bursts. But here it will be much better as the people tend to be less individualistic.

[Kfish]

There are major differences between the Australian and American economies. Firstly, the Australian real estate market is not suffering from an oversupply in the way the American market is. Secondly, the rising prices of commodities and a steady demand from China will ensure a healthy export income for quite a while.

The problem is that on one hand we have an economic slowdown happening, which should indicate lower interest rates, but at the same time a lot of money is being pumped into the economy through primary exports, fuelling inflation.

[turner]

I have seen the lateline report but was wanting to know where else to get some realistic views. Australian mainstream news is on the whole completely useless.

[alokin]

Kfish, that's true, we still have a lot of immigrants and I don't know about empty houses.
But I have my big doubts about the level of depth in private households. I have no exact figures, I only look what's around us and this does not match in many cases.
And the crab we're importing from China will get dearer every year.
There is very little manufacturing and a big lack of sense of quality (you only have to compete with Chinese products)