Not knowing the intricacies of the banking industry as well as some here claim all I can say is that those with a 100% faith in the Australian reserve banking system have little to worry about. Those with 100% faith in the various policing and regulating bodies also have nothing to worry about.
Those that have a 100% faith that the mortgages held as security by the Australian banks are loaned to diligent well paid employees in companies with growing order books reaching out for the next 25 – 30 years also have no need to stress about things.
They can further comfort themselves with the thought that in the event of some future out of left field mishap in the system, the banks are fully insured with solvent, well-run reputable insurance companies and even if that failed the ultimate full backing and security of the Australia Government and it’s ever growing tax payer base.
Correct me if I am wrong but at one stage I believe the Icelandic and many other failed nations banking systems had a clean bill of health from the majority of the rating agencies.
I wonder if back in 2008 there where as many Americans as you guys with an unshakeable faith in their banking system. A quick look down this list of failed banks in the USA from 2008 through until today should provide at least reason to take pause and maybe re-consider this faith.
The USA banking system is / was also diligently policed and regulated apparently!
“After all if you can’t trust your bank manager who can you trust?”
So I guess you guys can debate amongst yourselves but as far as I can see providing you guys can maintain your Faith and Hope there is nothing to worry about.
My problem is a little different to yours as I don’t share your Faith or hold a great deal of Hope for the future and have no wish to live on Charity in my old age.
Personally therefore as I don’t need to put my trust in the regulated banking system you will forgive me if I drop out of this debate at this point and continue to purchase Gold / Silver and hold it outside of the traditional and ever so noble banking industry.
