Watch the international responses to the Australian Government's decision in coordination with New Zealand action not just to guarantee all Australian bank deposits but also wholesale term borrowings by Australian banks from international banks.
The international ramifications will be fascinating. International banks can now lend to Australian banks backed by a triple A Government guarantee.
Australia can do this because of the country's position. Other countries will have to decide whether to follow. The competitive implications are enormous. Watch what happens!
In writing this brief post, I think that the thing that I really missed in terms of focus was the extent to which the Australian Government's response was itself a competitive response especially to the UK moves. In some ways this forced the Government's hand because it placed Australia's banks -some of the most secure in the world -at a disadvantage.
For someone like me interested in competitive dynamics, it all remains a quite fascinating if somewhat depressing.