S&P downgrade greeted with stunned silence as borrowing costs jump

In the past, whenever any international body has questioned Australia’s shiny bubble it has been greeted with great howls of protest and scorn from all corners. Yesterday and today we saw S&P downgrade Australia’s entire financial system, indeed country via the BICRA score (if not yet sovereign):

Yet the silence in response is deafening today. The downgrade was faithfully reported in the MSM and the only contrary media response of any interest was a pathetic squeak from Domainfax which outright lied that CBA is cutting interest rates using the perverse byline of a random Masterchef contestant:

What has changed that the greatest bubble country of all sits mute and stupid before this direct foreign attack on its bulging progeny?

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.