short the banks., page-4

Hi amole,

Regarding those alternative financial institutions - if they are licensed as banks, lenders of last resort, etc, then of course there will be churning, volatility and competition.

However, if they are made up of the likes of Credit Unions, Finance Companies, Mortgage Originators, etc, then the query must be what levels of protection do they afford their customers if, or when, anything actually does go wrong.

The banks may well be facing some competition out there, but has anyone really stopped to think just how robust (if that) many of the alternative financiers are out there?

In recent months, many on this Board have questioned the viability of Fannie Mae and Freddie Mac, suggesting that both organisations are /remain at risk. But if that really is the case from a USA perspective, then just how robust are our "alternative financial institutions" here in Australia?

It's a point well worth thinking about before finally concluding that the Banks have had their day and are likely to fall into ruination.