Pat done,Please don't compare me with John Howard's lies. When...

Pat done,

Please don't compare me with John Howard's lies. When someone expresses their opinion, if you don't like it you should comment using your own arguments and avoid the low points.

I never said that we are immune to what goes around us. We have been affected. Have you missed that point?

The ANZ share price has lost almost half of its value since last November. The other banks are not faring much better. We have been in a downturn for almost 11 months now.

The situation in Australia could get much worse if any of the following happens:

1. China stops buying Australian resources. So far things are not looking that bad. China is still growing strongly and it's not dependent solely on exports. Its domestic economy is doing OK. With the oil prices going down it should keep growing.

2. An Australian property market crash. Do you see that happening? The demand and supply equation does not suggest that. That will happen if unemployment rises to 6%-7%. Companies won't shed jobs if the liquidity is restored. It's high interest rates and high oil prices that affect companies most and force them to shed jobs. Both rates and oil prices are heading lower.

3. A 1930s worldwide depression. We are far away from that yet. In 1930 the US economy was much smaller and the number of banks that got busted run into thousands. Do you believe that it will happen today?

I think that the measures the governments are currently taking will eventually stabilise the banking systems around the world and help the world economies to recover.

This downturn is getting worse because it is currently driven lower by lack of confidence and fear. The foundamentals for the Australian economy are still OK.

When Europe and the rest of the affected countries take the necessary steps, things should get better. I think that we'll do better than the rest of the world and we'll recover much quicker.

As for the short sellers, they may attack individual companies, but with the markets down by 35% - 60% around the world, there is too much risk involved to push share prices much lower. They could get burned easily.

That's my view Patdone and if you don't like it tough luck. Follow your own advice and good luck with your investing.