mqg red rover - here's why, page-17

Agree bonzaboy 100%.

Stay out of financials. Keep your money safe.

When I hear the likes of Jim Rogers saying that he has minimal investments in the stock market anywhere around the world and is only shorting in this market then it gives you an idea of the magnitude of this problem.

Jim Rogers is a clever man and politicians should listen to his advice.

Financials are gonskies for a while. Even the banks here are not as safe as people think. If there was no government guarantee then you might as well have kept your money under the matress.

Macquarie is an investment bank and probably one of the few left standing around the world. IF and that is a big IF the government lifts the short selling ban on financials then I am afraid Macquarie will get hit very hard and so will the rest of our banks.

ANZ announced it will be reducing its dividend, hence its PE value and dividend returns will not look so attractive any more and they will seem expensive. This I believe will happen to alot of our banks here in OZ. The only thing that has prevented their share prices from tumbling further is the short selling ban.

My concern is that it will not only be the banks that will seem expensive as earnings are downgraded and dividends are cut, but other companies as well. This will equate to even more downside in the market and will impact every Australian via their superannutaion, unless of course you have switched to cash.

Good luck to all and keep your fingers crossed.