Aussie banks

Some fascinating stuff reported from Dan Denning today, somewhat unnerving for Australian and Nerw Zealand banking customers who seem to have universally convinced themselves that their banks are less exposed than those international banks carrying bad debts. Find Dan at www.dailyreckoning.com.au and subscribe to the daily email update. 

“Australia is probably doomed too, especially the banks. Our colleague Kris Sayce at Money Morning waved a copy of today’s Australian Financial Review in our face when we entered the Old Hat Factory this morning. “Bank chiefs warn on funding gap” screamed the muted headline.

–The article made three basic points. The deposit base of Aussie banks is “too low.” Aussie banks are over-reliant on offshore money. This entire situation is a “threat to economic recovery.” So it appears Aussie banks are addicted to foreign borrowing and are currently suffering from withdrawal symptoms.”