Well that was quite amusing, Arjay. You trying to justify your mix-up
of 3 billion versus your claimmed 3000 billion$. Rather then show
some character and admit that you screwed up, you keep shovelling as
your hole gets deeper. Go on, admit to Pericles that you got it wrong.

What will happen if housing prices drop dramatically? Well no, it
won't be banks wearing the losses, but homeowners. Banks have
a spread of customers for 30 year loans, so only a small % of their
loans are recent ones. I did see a projection somewhere as to what
would happen if Australian house prices dropped and amazingly our
banks would still be ok.

If our economy tanks, even that won't be such a bad thing in the
longer term. The Aussie $ would become the Aussie peso, my wheat
and meat would be worth far more on the global market, and you
city slickers would have to think of ways to earn a crust in the
real world, rather than just trade houses with each other for a
living.

Those who borrowed too much would sink and those who put a penny
away for rainy day, could buy assets at a bargain price

For those of you who think I am talking through my hat about the "End of Growth"
You may be interested to see that Bloomberg has published an article
on the effect of the cost of oil on growth and its end.

http://www.bloomberg.com/news/2012-09-23/how-high-oil-prices-will-permanently-cap-economic-growth.html

So you see there is a lot more to our current situation than what all
the experts tell you about how we have recovered from the GFC.
Of course Bloomberg has a bet each way by saying that the opinions are
the authors.
However more people writing & commenting on the economy are acknowleding this problem.

contd
At the bottom of the article there are links to part 2 and part 3.
Part two deals with coal and the effect of its increasing cost and
decreasing quality and availability.
Part 3 deals with nuclear and tar sands oil.

Anyone interested in the economy must find it interesting as its
outlook is so different to the usual "now don't you worry" and business as usual.

Ok Arjay, so we've established (by default) that you didn't actually mean "at least $3000 billion". But you are still confused about some basics...

>>Re NAB pericles.$ 3 billion is what we know about.Their inflated net profit is about this.<<

You might like to ponder for a moment how borrowing $3 billion is related to their net profit line, as you appear to insinuate. Basic accounting procedures ensure that borrowing money doesn't flow through to the bottom line in that way. What you might also like to examine is why borrowing $3 billion at low rates from a highly reputable US agency is in itself a bad thing, as you also seem to believe.

>>Add into the mix their derivative exposure.<<

Add to what? And what is their exposure to derivatives? Is it material?

>>Add into the mix 40% property over valuation<<

Whether or not that figure is accurate at the general level, you cannot know how that might impact the Bank's stability. For all you know, their total exposure might only be 60%, in which case their net exposure is nil - even assuming everyone defaults at the same time.

>>Add into the mix their supposed assets based on loans yet to be repaid.<<

No idea what assets you are referring to. Who is repaying what to whom, and why?

>>Is dear old Pericles trying to tell us he has more credibility than Max Keiser? Pull the other one Pericles.<<

From what you have told me, that wouldn't be an outrageous claim on my part.

But I do know that I can add up, which is more than you and Barnaby Joyce appear capable of.

it seems we are buying gold because..we expect the
central banks to be buying great lumps of the stuff.. via money printing....i missed that reason.

http://www.youtube.com/watch?v=cD3mvy2qaTU

The Emperor Has No Gold

http://www.washingtonsblog.com/2012/11/the-emperor-has-no-gold.html


Romania has demanded for many years that Russia return its gold.

Last year, Venezuela demanded the return of 90 tons of gold from the Bank of England.

The German high court recently ruled that Germany must audit its gold reserves held in foreign countries such as the U.S., England and France. And German inspectors will actually travel to the New York Federal Reserve Bank’s gold depository and the Bank of England to inspect their gold.

Germany will also repatriate
150 tons of gold in order to test it for purity.

Ecuador’s government wants the nation’s banks to repatriate about one third of their foreign holdings to support national growth, the head of the country’s tax agency said

Rival Libya militias turn streets of Tripoli into battlefield
http://www.middle-east-online.com/english/?id=55285



Rival state-sanctioned Libyan militias fired guns and rocket-propelled grenades at each in the Libyan capital on Sunday, leaving the police powerless to protect locals.

http://www.globalresearch.ca/who-pocketed-gaddafis-billions/5310459

"But we got rid of that state bank
and that pesky gold dinar and that makes it all worth it!"
http://www.youtube.com/watch?v=z3JLKw0q4kY
http://investmentwatchblog.com/the-world-is-getting-robbed-bailouts-going-to-money-laundering/

free fuel tell em no way
http://12160.info/page/authorities-stop-free-gas-from-getting-to-the-public-in-nj

John Maynard Keynes famously remarked that, “In the long run, we are all dead.”
http://www.forbes.com/sites/victorsperandeo/2012/03/30/the-long-run-is-here-lets-bury-john-maynard-keynes/
http://chasvoice.blogspot.com/2012/11/german-gold-reserves-stored-in-ny-fed.html

more clever games
http://poorrichards-blog.blogspot.fr/2012/11/trillions-of-dollars-of-securities-may.html

http://xrepublic.tv/node/862