Naked Capitalism Link of the Day

Today's link from naked capitalism: They're onto us, at MacroBusiness.  The post looks at Moody's downgrade of 4 large Australian banks and quotes the Moody's press release to highlight the strains on the Aussie economy:

Ouch. Put this down as the China warning. Australia’s entire economic model is being peeled back here. For well over a decade, Australia’s banks have funded huge swathes of the current account deficit. As well, over the past two commodities booms, much of the export income has been leveraged up and blown on housing and fancy living. Moody’s is effectively calling the risks of this model to account. And they’re still not finished:

It goes on to say that Moody's is indicating the four banks are too big to fail, and if the Australian government backs off on implicit guarantees, they'll really cut the ratings.  Way to protect the banksters and investors at the expense of taxpayers, again.  We've got bad stuff brewing in Asia and Europe, while we plod along looking at huge government cutbacks sooner or later with a still highly-leveraged private sector.  I don't see this ending well.