banks and their worth

The CBA is buying balance sheets, cash flows and market share from another bank in order to shore up the state of their finances.

True the CBA is large but does that make it efficient? not any more than Qantas is. They are fossilised behemoths remnants of government protection with the facade of privatisation but not the benefits of that concept. CBA will fall to $30 or below within 6 months.It will still have a government safety net below it. $30 is a generous forecast for its share price

The NAB is worth $14.00 and thats generous and the ANZ Bank will fal to its real net worth of $9.00 in the same time as the CBA.

Saul Eslake can mimic Gough Whitlam all he likes, his brand of economics is as interesting as his banks board.

This is the recession we had to have. It is a correction whereby the overpriced assets all of these banks owned are shaved by their own industry to lvels that may be sustainable. It is when banks refuse to honour each others commitment and refuse to buy or lend to each other that a situation like what we are witnessing occurs.

The mining sector is being gradually wiped out. Coal is in its dying days. The Chinese were waiting for this to happen. They will now squeeze Aussie mines to produce twice the amount for half the price. They ill now come good with their threats to sit on the boards of Australian mining companies or go elsewhere.

My earlier forecasts in August that BHP and RIO would suffer drastic falls in market capitalisation is occurring. They may have supporters buying at 'support levels' but the Chinese are watching. The Chinese and Tamasek Holdings in Singapore ar working with the Tatas and Birlas to clean up. Thats the new world for you.