goodbye young aussie home ownership, page-256

"Our banks did not collapse , the guarantees were in place to help depositors not follow the global contagion plus they are rated amongst the best in the world"

Passive

1. Guarantees were in place to restore confidence in the global banking system because any bank is susceptible to failure if a panic occurs. One of the drawbacks of fractional reserve banking.

2. Yes we have all seen how "effective" ratings agencies have been globally on everything from the quality of credit default swaps pre GFC to the solvency of entire national economies.