JK5 I have to disagree with your argument. Australia, and the...

JK5 I have to disagree with your argument. Australia, and the rest of the world, have always followed the lead of the US, hence the phrase 'when the US sneezes the rest of the world catches a cold'. Australian Banks may not have the same exposure the subprime as the US, but there is a fear they could have some exposure as some of the UK banks had. There is also concern subprime type problems could spread to Australia and this is a real possibility with interest rates increasing and record levels of debt. Also the credit crunch has increased the cost of doing business for the banks which affects profitibility, for all these reasons our banks have been battered.
It is unfortunate that instead of looking for the truth, novice traders must lay blame on the trading bogeyman "hedge funds" and "short seller".
Markets go up and go down, either learn to short or take the falls like a man and use the opportunity to buy on the cheap.