Cut ya rate, cut ya rate ,cut ya rate . Its a given that if they cut their rate the big 4 wont
they haven't thus far and have fatter margins than they have ever had .They have plenty of excuses and continue to get away with it. They were happy to be underwritten by the Australian tax payer by US (no not the USA ) during the GFC and buy up their competitors .The pressure is being applied to the incorrect places.
So Penny Wrong's advice is if the banks don't pass on RBA rate cuts then shop around .Ha good luck Penny .THERE IS NO COMPETITION and your government underwrote them and didn't question their actions

Here's another thought .The teacup gen will be covering the night( re Kony 2012) to show that they care .Perhaps they could broaden their awareness and action to other issues .(Its very trendy to get on the Kony train ) there are lots of other issues tho .Kind of like the trendy "lets turn our lights off for a night and save the planet from global warming " and get right back to western consumerism the next day.

I wish they'd increase interest rates, bring on the good ol' 18%!
Cheap money is like cheap grog.

Mr float said...

. Its a given that if they cut their rate the big 4 wont

Because we no longer have the Commonwealth bank to implement Govt policy and make the others follow suit.

Privatisation and deregulation. Just grand, ain't it

uncensored 27 out now..... best eight bucks and change you'll ever spend

except of course for granny porn, that stuff is seriously like eight bucks worth of gold

Mobydisc said...

No way should a government start a bank here.

Agreed. We had one but they fked it up by selling it off and now all the banks can do as they please.
Too late now

Mobydisc said...

No way should a government start a bank here. There are enough banks here already. The issue is that banking is a protected industry. Thus the big four can do whatever they feel like, safe in the knowledge the good old taxpayers will bail out if times get tough and the good old government protects them from competition. There is no need for taxpayer money to be spent setting up a government bank. Better to open up the market to get more competition. Plus tell the bankers, "you will never be too big fail".

What was the end result of the government guarantees of a couple of years ago? The big banks buying up all the competition.

If a bank is "too big to fail", isn't it just "too big"?

So the two big supermarket chains have a stranglehold over the market with their duopoly, guess we need another big competitor to give them a run for their money, that brings it to three. So why isn't four big banks enough? Am I missing something?

So both sides of govt are clueless to when the RBA meet and set their rate (Th e mad monk and the oh so smug Bill Shorten ,just as well he said "we are all prone to mistakes" )
So a 100 percent chance of an RBA cut is on the cards and bank shares still surge (a big 4 cut of the whole lot is obvious;y unlikely and they will no doubt announce a token cut to keep the toothless tiger pollie wollies at bay and keep shareholders happy,geez those funding costs are just so high )

Now thats a good idea,

Mugs like you and me borrowing directly from the reserve bank for our home loans.

Now that really would upset the commercial banks!

Stephen.

Send an email to this address:

[email protected]

Ask them if you can borrow money off them. Perhaps offer them 1% margin on their cash rate to pay administraton of the loan.

Do the commercial banks borrow money from the RBA? Wouldn't it be cheaper for them to borrow money from the American Federal Reserve? Right now the cash rate over there is about ZERO.

They charged too much because they want your money they sell cheap milk ( and put it at the back of the shop) because they want your money. The banks they just want your money if they have to play nice or provide a service to get it then that is just an unfortunate cost of doing business .
More a case of damned if you are greedy damned if you are greedy
The old saying "its not personal it's just business " is not ok if you are a d*ck in business you are a d*ck

Related:

Bernie Fraser said...
We've had 20 years of uninterrupted growth, solid, sustained growth for 20 years, and yet we've got more homelessness, distribution of income and wealth is more unequal now than it was 20 years ago, we've got infrastructure, social and economic, that is breaking down and creaking.

Warning: Leftist ABC propoganda.
www.abc.net.au/7.30/former-reserve-bank-governor-bemoans-state-of/3981350

News this morning: 1,000 jobs possibly to go at Qantas. It feels like 100's of jobs being lost every week in the news lately.. It feels like the whole thing is crumbling from the bottom up, and like nobody cares until the crumble, eventually, reaches them. </caffeine fuelled hysteria>