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The 11 July AAS found that Australia’s banks are not “unquestionably strong”, as the government and regulators claim; that they have the highest exposure to housing of any banks in the world by far; that the housing market is a world-record bubble; that the nature of denials by the government, regulators, banks and real estate industry is eerily identical to Ireland before its crash in 2008; that the actual capital of the banks, and not the fraudulent risk-weighted capital, is razor thin; that the banks are entirely dependent on all borrowers continuing to make their mortgage payments, except that Australian households are on the edge, suffocating under the highest household debt in the world with no capacity to absorb the interest rate rises that have already started.
It concludes: “Australia’s banks are dead men walking, effectively bankrupt.”
As to the OP, the chickens are coming home to roost.
