5 days after I wrote Australian Banking Crisis, I read that our banks have been downgraded.
S&P cuts ratings of big four banks
Standard and Poor's has cut the credit rating of some of Australia's major lenders, including the big four banks and investment bank Macquarie Group Ltd.
The changes are part of a shift in assessment criteria at the ratings agency, which saw it cut the ratings of 37 US banks earlier in the week.
ANZ Banking Group Ltd, Commonwealth Bank of Australia Ltd, National Australia Bank Ltd and Westpac Banking Corp Ltd have all had their credit ratings downgraded from AA to AA-.
Macquarie Bank's A long term rating has been affirmed, while Macquarie Group was cut by two-notches, from A- to BBB+
The new approach takes into account offshore financing levels and Australia's high level of foreign debt.
Where have they put all the money (over $600 Bilion nett) they have borrowed overseas? Into a property bubble.
Tick, tock, tick, tock - Australian Debt Clock.