Murray: “Housing casino” hangs on AAA

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Australia’s last benign oligarch standing fights on today, David Murray from the AFR:

Mr Murray is insistent that the banks, which rely on foreign funds, are undercapitalised and pose a risk to the Australian economy.

Because of expectations the Big Four banks’ debts are underwritten by the federal Treasury, any credit downgrade of the government could hit their AA credit ratings, increasing their funding costs and reducing their access to foreign capital.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.