MikeWe can only offer opinions but words like a "collapse" or...

Mike

We can only offer opinions but words like a "collapse" or "dramatic fall", just don't make sense to me.

I can see a correction of >15%, as possible, but anything greater than that I am very sceptical about.

For the banks to be materially effected there would need to be wholesale job losses across the economy, resulting in foreclosures, not a pullback or correction in real estate prices that will have no negative impact on their earnings as mortgages will still be serviced.

All in all the Austrlian economy continues to travel fairly well IMHO.

Yes the banks may come under some pressure to their net lending margins in H2 10, due to cost of finance but thats a different story and also not a concern for me in the med to long term.