My prediction for the end of this market melt down is based on Dividend Yields

The difference between an investor and a speculator is an investor is interested in increasing their assets and getting a dividend . An asset is something that brings a positive revenue stream but the speculator is not worried if it cost them negative income as long as they think there purchase price will go up . There is no correlation to the income of the asset as long as they think someone else will want it more and pay more. When reality in the market sets in the speculators get burnt and the investors come back.
When the big 4 banks all have yields over 10% for the next financial year 2010 and Price to earning ratios of between 5 and 7 will be when we see the bottom of the stock markets here in Australia . We may then see some real blue sky as i feel we are on the verge of an economic bonanza with our dollar falling. We are more than well place to weather the economic storm hitting world markets
At present dividend yields are historically at 7.7% and PE's are around 10 so in my calculations prices should fall a further 25% to achieve these goals so that is Commonwealth bank at around $30 NAB at $16 as they have been traditionally adventurous with day traders and sub prime exposures . ANZ to $12 and Westpac to $17 as it has large retail deposits. After the banks bottomed out at these prices we will see an Asia Pacific recovery as they will be the new consumers.
Forget the USA it is a relic of the past now , we need to look to China , Japan, Singapore and other Asian tigers to show us the economic indicators now. These are the forces we are tied to and recovery will only come from their leadership. I feel Australia is well placed to take a leading role in this new world order as we are not only geographically well located in the center of the region but well placed as a broker between Asia and Europe, USA or other western nations because of our cultural diversity. Many Australians have the skill sets and connections in the Asia Pacific to rapidly deploy our business interests globally.