The banks that escaped balance sheet damage from the 2008 financial crisis are those down under in Australia.
Previous posts:
Australia to enter a very sad decade – Update2
Australia to enter a very sad decade – Update
Australia to enter a very sad period
The Aussie banks and economy was saved by the 18% of GDP stimulus China started on the eve of the crisis. This allowed Aussie exports to flow to China without a any major hick up, this also allowed the Aussie property market to avoid any serious down swing.
That was 2008, roll on to 2013. China has not stimulated their economy along with the western central banks since 2010 and the Chinese economy has slowed, some say only a little, however more suspect a larger down swing is to be expected. The Aussie mining boom is over, even Kevin Rudd knows this as he called the early election as the effects of the mining down swing are starting to hit main street. This will mean pressure on the teflon Aussie property market and retail banks. Below WBC and ANZ look very weak and ideal candidates to be shorted.
The table below shows that as at Jan 2013 many Aussie banks are listed as the top 20 banks of market cap in the world. Better than many US banks, German banks, UK Banks and the rest. The Australian economy is only $1.4 trillion, which proves that massive overvaluation of the banking (and residential property investment) the Aussie banks hold. Therefore more chance of a down swing than an up swing.
This goes for Chinese banks, it you can believe their balance sheets with a nation full of empty cities and 100% own apartments with no one in them!
Yeah right cobber !
Aussie banks to short (Indicator is RTTTrendPowerOBV)
shrink
The Market Cap table of BS!!
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Investing Quote…
..”Your goals are to select only stocks that move soonest, fastest and farthest in bull or bear markets. Limited losses and let profits run.”..
Richard D Wyckoff
..The time of maximum pessimism is the best time to buy and the time of maximum optimism is the best time to sell”..
John Templeton
