All worthless in the real world


Buried away in the small print was this gem :

The ANZ makes almost $350,000 of profit for each of its full-time equivalent staff members.

But no pay rises for staff, ever increasing pressure to sell consumer debt or “You’re fired” are the conditions of modern day serfdom.

The other gem was that they make a 10-15% return on equity. “In line with other large businesses” says some talking head.

Sounds reasonable you think. Except large businesses have more than 3% equity in their operation. Banks lend 14x their deposits, Walmart does not.

Walmart’s debt to equity is 4-8%. ANZ’s is 12%+.

Walmart has stock, shops and tangible items as equity, ANZ has some carpet, desks and a ‘Brand’ – all worthless in the real world.