Let’s just hopeand pray that when the shite hits the fan that the FCS government guarantee onAustralian bank deposits (up to $250,000 per ADI per entity) is upheld (ie. amountsheld in ADI’s above that limit risk forfeiture). Bank depositsare still much safer than risk assets (shares, bonds, commodities and property)which can either evaporate or decline dramatically in value. Keep in mind thatAustralian government bonds are the only other asset class with government backing.And they are backed to an unlimited amount. But if the bond bubble is alsostarting to deflate, as appears so, then even these assets risk devaluealthough short-term bonds of only the safest governments (eg. Switzerland) is wherethe big money will be forced to flow as a global financial crisis developsthereby increasing their relative value. Bottom line: caveat emptor.
