ASX bath of blood recedes for banks

The Australian dollar is weak through the morning:

Bonds have eased but not much following the deflationary Depressionberg Unstimulus:

ASX likes it for no apparent reason. Unless you employ lots of young people to rort the taxpayer it’s a bust. It looks neutral technically:

Big Iron is up. I’m still waiting for more seasonal downside when China reopens tomorrow but it’s well possible that I’m wrong:

Big Gas is still buggered, which is just great:

Big Gold is up again, led by new star NST:

The real news is banks are making a run to break out of their downtrend. Paint me skeptical. The Depressionberg Unstimulus will force more RBA action but it will also gut household incomes and any property rebound is going to be very troubled in Sydney and Melbourne as bank margins are eroded by ZIRP:

I see them as structurally fooked now.

David Llewellyn-Smith
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Comments

  1. happy valleyMEMBER

    And the betting as to the first of our “unquestionably strong” banks to go belly up is?

  2. MathenomicMEMBER

    I have a musing that the banks wont start their proper downtrend (and will melt up a bit) until after the effects of JobSeeker, Keeper, forthcoming RBA action, and removal of responsible lending have worn off.