I think, the economist is correct in saying the Aussies have not...

I think, the economist is correct in saying the Aussies have not been lending like the US. But, the Aussies have been investing in US and therefore exposed to US problems.

The economist gave an economic outlook; he is not responsible for investment. I personally would not blame him since investment and VAR models would not be his domains.

I also would not blame the analysts you relied on, there is no way the analysts would have determine the extent of the CDOs and their values. After all the CEO came out to say NAB has no direct exposure to the subprime problem.

So who do you blame? I would blame the RBA because it should have policed the banks more tightly. Is a matter of time before the RBA cop some of the blame.

By the way, the exposure is far more than you have stated.