Here’s the Real Crisis in Australia
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June 27 (Bloomberg) -- Australia has been called manythings: Oz; the land Down Under; the lucky country. But theequivalent of a collateralized-debt obligation?
Canberra can’t be happy to hear its AAA-rated economylikened to one of the reviled investment vehicles that blew upamid the 2008 global crisis. Yet the comparison is being made bysome economists, who see the asset underlying Australia --demand from China -- beginning to evaporate. No country is morevulnerable to the much-dreaded slowdown in China than resource-rich Australia. The mining boom that fueled nearly all of itsrecent growth is nearing a cliff of economic risk.