RKG - you didnt just suggest that CBA was safer did you?Do you...

RKG - you didnt just suggest that CBA was safer did you?

Do you even know the leverage inherent in the banking model?

Are you aware that the banks are at all time highs (by market cap)?

I dont have a strong opinion on either stock at the moment, but punters who back the truck up and risk their retirement on the banks thinking that they are safe as houses are dead wrong (actually, thats not fair, they are probably right. As the property market goes so to will the banks).

With ours being the most expensive residential market in the developed world, bank market caps at all time highs, and a leverage model that will see the majors struggle with corrections of anything more than high single digits, I would much prefer have my money in a company that is debt free, un leveraged to a housing bubble, and are well on the way to rebuilding their once fine reputation.

The true risky investment is being in companies whos business models you just dont get.

For more information on the potential losses for big banks see Freddie Mac, Fannie May, Lehman Brothers, Citi and others 2007