Hot The "$1.5 Quadrillion worth of Toxic Derivatives- bang! Yippee!! Welcome to Mad Max!" Thread

Tadhg Gaelach

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Australia's banking system has been downgraded for the second time in a couple of weeks - this time not only the smaller banks have been downgraded, but the four major banks too. This comes on the heals of Chinese investors withdrawing from the Australian property market, after China enforced credit controls where Chinese citizens cannot take more than 50k US dollars out of China without government permission. The Chinese have already pumped 60 billion US dollars into the Australian property bubble.

Credit rating agency Moody’s has downgraded Australia’s big four banks.

Following Standard and Poor’s (S&P) decision to downgrade the credit ratings of 23 Australian financial institutions in May, Moody’s Investor Services has followed suit, lowering the ratings of 12 lenders on the back of what it describes as “elevated risks” in Australia’s household sector.

Unlike S&P, Moody’s decided to downgrade not only smaller lenders, but also Australia’s largest banks.

The group said that “risks associated with the housing market have risen sharply in recent years”, adding that Australia’s very high levels of household debt are “particularly concerning” given low income growth experienced in Australia over the past few years.


Read more at MOODY'S DOWNGRADES AUSTRALIA'S MAJOR BANKS
 
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