The Aussie View of US Banks

[Elliott]

US banking won't survive in its current shape and its death will be painful.
DEATH is God's quiet way of saying slow down. Something more powerful than God, the US banking system, has been tapped on the shoulder and the Flaming Star flames no more. This will affect us all, but before we race to withdraw our deposits, or call super funds, or before we panic as great and powerful financial institutions far away fall, consider that most of the terrors in store are not matters that will bring National Australia Bank, ANZ, Commonwealth Bank or Westpac, or most of our pillars of finance, down.

How can companies such as Bear Stearns, worth more than $US70 a single share, be found to be insolvent and worthless?
The shotgun marriage between Bank of America and Countrywide may be the next cause of a fresh banking crisis as it is the most obvious source of immediate, mutually assured destruction.
S&P's decision late on Friday to downgrade both banks may destroy the plan to allow Bank of America to swallow Countrywide and its almost unfathomable debt. If that doesn't concentrate the minds of the global financial community, there is plenty else to look forward to.

http://business.theage.com.au/us-banking-system-is-doomed-20080624-2w9p.html

 

[c w d]

I heard a blurb somewhere about a foreign (brit or aussie) reporter making a report about the ultimate demise of the US financial system. It was real doom and gloom stuff. He was suspended at the time but the pundits were calling for his termination. Could that article be it?

 

[Rhino]

IMHO our financial institutions are in trouble. Every time I read about Citibank they seem to always have Billions of Dollars in writedowns and why on earth would B of A Buy Countrywide? unless there is some kinda behind the scene dealings going on. This purchase to me just does not make sense.

 

[Elliott]

cwd,
If David Hirst got suspended it must have been quick since the
date line on the article is June 25, 2008---tomorrow!!

 

[timd354]

The government won't let these big banks fail, they will be bailed out on the backs of the taxpayer.

 

[Rhino]

timd I second that

 

[Bama Bayou]

The government won't let these big banks fail, they will be bailed out on the backs of the taxpayer.

And the bill should become law in about three weeks, with or without W's signature.

 

[Greg Bell]

When the feds bail out these monster black hole banks they will keep the printing press overtime.Inflation will be rampant..cheer up , how bad can it get???Time to retire to 1958 bomb shelter..

 

[aussie ken]

The fall of Bear Stearns, the collapse of Lehman Brothers and rumours circling the future of market super-heavyweight Goldman Sachs and Merrill Lynch attest to the end of the broker-dealer form of banking that cannot survive without securitisation, a system essentially built on kickbacks, big bonuses and the movement of money dressed up as industry.......David Hirst 25/6/08.................. Aaaaah trust an Aussie to see it for what its has always been........kinda makes me proud to be an Aussie.

 

[Lloyd Bonafide]

The government won't let these big banks fail, they will be bailed out on the backs of the taxpayer.

Who's going to bail out the federal government, when the time comes? Maybe a sovereign wealth fund from another solar system?