BANKSIA AND WATER

I have just had a very interesting discussion with my brother Andrew who sells farms regarding the Banksia Financial Group collapse and water.
The word apparently is that where Banksia have got in to trouble is that they had a high exposure to farming debt to farmers in the basin, their asset value used to be at $800 million plus and was re valued recently to just over $500 million, leaving them short well over $100 million, there are no bank guarantees so the investors are looking at getting only a percentage of their investment.
The global financial crisis certainly is partly to blame but my view is that the Federal Government with their shocking Murray Darling Basin plan are mostly to blame and todays announcement by Gillard will only make things a lot worse.
Oh by the way, all that water the Federal Government spent over $600 million of our money on is now worth something like $200 million, $400 million sure would have lined a lot of channels and covered heaps of dams.