Comments on: Eslake: Why Australian Banks are standing strong

By: tpo

tpo — Thu, 01 Jan 1970 10:00:00 +0000

Twaddle. Will Saul be giving back money to people who believe his irresponsible comments and lose their savings in the coming bank implosions? Anyone who thinks Aussie banks are safe should be asking themselves why Kevin Rudd was out and about last weekend screaming for the US taxpayer bailout bill to pass through Congress on its second try. Kevin knows Aussie banks are screwed and their only hope is to get on the US taxpayer gravy train courtesy of Section 112 of Hanky Panky's bill:

11 SEC. 112. COORDINATION WITH FOREIGN AUTHORITIES
12 AND CENTRAL BANKS.
13 The Secretary shall coordinate, as appropriate, with
14 foreign financial authorities and central banks to work to-
15 ward the establishment of similar programs by such au-
16 thorities and central banks. To the extent that such for-
17 eign financial authorities or banks hold troubled assets as
18 a result of extending financing to financial institutions
19 that have failed or defaulted on such financing, such trou-
20 bled assets qualify for purchase under section 101.

By: Doug Bell

Doug Bell — Thu, 01 Jan 1970 10:00:00 +0000

Bank articles always refer to major 4 what about second tier Australian and deposits security in like Bankwest with UK owners.

By: John Wagner

John Wagner — Thu, 01 Jan 1970 10:00:00 +0000

“dodgy American mortgages” = Credit Derivatives Swaps (CDS) and CDS insurance instruments. Estimated $18 trillion in US and $55 trillion globally. Insurance is worthless and CDS a mixed bag with $5 trillion worthless or near worthless. CDS are underlying cause of global credit freeze.
Draw a chart to and from Goldman and bailouts/non-bailouts with lines of credit to evaluate effectiveness of Economic Stablization Act of 2008. For example, Goldman extended credit lines to Bear Stearns and AIG but not Lehman.
This is common knowledge among derivative traders and analysts.

By: Ben Aveling

Ben Aveling — Thu, 01 Jan 1970 10:00:00 +0000

I can still remember that Westpac nearly went broke in 1992, and I assume I’m not the only one. I wonder if that experience helped keep a bit of sanity in Australian lending practices? Can anyone tell me if America went through a similar experience?