michael west still $65 in front, page-12

jimmy, you are right on the money. Fractional reserve banking is as shifty as it gets. It's a good money-spinner.

At the heart of the fractional reserve banking system is an implied guarantee that the biggest commercial (not investment) banks won't be allowed to fail. For this reason, if I'd go for ANZ at some point in the next six months. I don't think it has reached its low, but when the last of the write-offs come through ANZ will be a great buy. Sure, its not well capitalised, but by the same token, it won't be allowed to fail.

Failure of a large commercial bank would undermine public confidence in our shifty banking system. That's why the Commonwealth wouldn't let it happen.