nab impact, page-16

the Banks (and I'm talking all of them) are highly geared, they always have been and always will be, that's why they make heaps of money in the good times and lose it all in the not so good - no different to any other highly leveraged investor. They never have enough asset backing for a downturn and never will have. They prosper on paying you and I 3% for the money we lend them and charging you and I 7% for the money they lend us - they take security and we don't - not a difficult way to make money. They assume they will never have to pay you and I back but they will get 99% of their 7% investment back. Now it should make sense why the Gov't will always rescue them - they are simply protecting your money and mine. It follows that they shouldn't complain when things go pear shaped.