Why crapola Aussie banks are still bid

They’re risky, have falling earnings, and are very highly valued at 15x forward. Yet Aussie banks are still bid. Why?

A couple of Jonathon Mott charts from UBS tell the tale. It’s called the “dash for trash”:

Divy cuts anyone?

Houses and Holes

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the fouding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.

He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.

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