Quote +++ I think that mbl is hight exposed to the sub prime...

Quote +++ I think that mbl is hight exposed to the sub prime more than they let on, I guess when the market really finds out how bad it is then Mbl might have to do a fire sale of its infrastructure assets to cover the losses. +++

. what basis do you present this opinion other then hope that you see a great australian company get destroyed
. MBL doesnt have a lot of infrastructure assets on its books, the seperately listed companies do have infrastucture assets, mbl makes its money from fees managing these assets, i suspect you dont even know what mbl does or how it goes about it.

QUOTE +++ Several companies like Mbl have gone bankrupt in the U.S. these companies think because they are dealing with other peoples money that they are imune to collapse, they do not factor in risk like they would if it was their own money. +++

. They ALL factor in risk, sometimes people get the risk factors wrong, MBL as a bank comes under Australian banking regulations and have very tight restrictions on what they can do, if you are talking about the seperately listed funds they do not come under banking regulations.

QUOTE +++ Remember that directors still get paid even if you are loosing money. +++

. Yes everybody has the right to get paid to do a job, mbl people have been getting paid big money because there pay is linked heavily to profits and the company has made massive profits for investors, if there are losses then the big bonuses DONT get paid.

QUOTE +++ I have heard some stupid comments about infrastruct assets etc within the last couple of months. MBL think that they are ammune to a recession because ppl need infrastructure, that is absolutely wrong.

If we hit a recession tomorrow I will cancel my mobile and home phone, cut off the internet, sell a car, cancell holidays, reduce power consuption, cancell insurance, minimise hospital cover, ride a bike.

The airlines would suffer first, oil prices would retreat to all time lows, telco would scream as their share price collapsed, good night to manny internet providers and even coles and woolworths would suffer as eveyone would only buy necessities. +++

. you may choose to cancel all your life's luxuries but lots of people also will choose not to, and yeah if we are in a recession a lot of companies profits are reduced but you know doesnt mean they dont continue... life does not come to an end the way you are making out, most people dont lie down and give up cause going gets tough.