Bear Raid on Australian Banks to tip economy into recession, world traders believe that Australian banks are misleading the market and headed for a calamity

ASX Bear Raid on Australian Banks

Australian Banks tip economy into recession
The great bear raid on Australian banks continues. The global hedge funds say that Australian bank chief executives and boards are misleading the market and their shares are headed for a big fall, which will almost certainly send Australia into recession.

Why do world traders believe that Australian banks are headed for a calamity?

Australian house price-to-income ratio is still at its highest level in history and has surged over the past two years on the back of low interest rates. This, of course, caused Sydney and Melbourne house prices to boom to levels that make our dwellings among the most expensive in the world. The traders believe that the fall in commodities will extend the current Australian income recession and, even though interest rates may fall further, we have an unsustainable housing bubble and that because the bank balance sheets are over leveraged to housing, bad debts are set to rise.


Link: Originally reported by the Business Spectator

Date: March 24, 2016 at 9:58 AM
Reporter: Robert Gottliebsen
Published by: Business Spectator
Category: Australia Real Estate