Originally Posted by
Baa_Baa
It's not the Australasian banks per se that is the problem, it's the bigger picture and the flow on effect that it has on companies. Banks and finance companies SP get slaughtered when the global goes bad, the contagion is already apparent and so far it's only stories being told. When it goes bang, which it will as the debt and leverage overhang catches up with the party least able to sustain the defaults, then we'll see how robust the NZ companies are. Unlike GFC, the current situation seems to be slow-motion entree to something truly catastrophic. It's never a good outcome when globals enter a currency war, however that manifests itself.