You know Massy if i were to short banks i would be probably watching what the aussie dollar will do.So far the longer term predictions seem to be on the money that it will continue to rise .How the banks deal with this is my best guess they will enjoy it as long as we can asorb paying down our risk even if at a loss to many.So far we have a well weathered banking system that maybe getting the balance right for the big figure statistics but as the smaller end of town has less influence on this nowdays i think it goes without saying the bigger end of town is going to have to pick up the taxes to run a country.
We are a services country for this nowdays at the lower end we will need make a transition to the high dollar while the boom in mining continues i think that is debt reduction heads down and just maybe more dollars will flow into the economy by socialy minded companies who will endevour to be on the right side of the country and begin investing those big dollars at home.
We made a transition to the floating dollar maybe we are just back to where we come from and now need wake up to the cost of wages rising in service industry being the answer to a high dollar?.
