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Are the banks ripping us off?


andrewe

Will the banks pass on the full RBA interest rate cut?  

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This article explains how the banks have used the 'credit crunch' and the demise of its competitors to increase its margins on home loans from 1.8% to 3.2% and heading towards 4%.

 

http://www.abc.net.au/insidebusiness/conte...07/s2261579.htm

 

http://www.keepthebankshonest.com.au

 

The above is a campaign to put pressure on the banks to pass on the full cut when the RBA cuts. I believe they wont and this will give them an opportunity to increase their margins again.

 

By the way NAB have already agreed to cut but that doesnt mean they all will. So vote according to whether you think they all will or not.

 

Cheers

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Ah the public of the nation...mis-lead??? tricked????? ripped off???

 

Lets look at this from the start:

 

Currently Australian's spend something like 190% of their income (yes I know, it's discusting).

 

For the last x number of years we have used the banks and mortgage brokers to arrange money for us from foreign countries, who have lent at lower levels than our own RBA.

 

Very, very little attention has been paid to that fact. We relied on cheap money from overseas. Mortgage brokers flourished, lent to anyone pretty much.

 

Now the parties stopped, the only consistant source of money is the RBA, which is charging considerably more than we are used to obtaining. The banks are a business and deserve to be profitable, and competitive.

 

If mortgage brokers can't operate due to a lack of liquidity or easy money from over seas, they forfeit their right to be competitive.

 

Check out the interest rates applicable to people on the street in the USA, it aint the 2% the Fed are asking. Banks aren't profitable their now, and this is part of the problem.

 

Banks need to be profitable and secure. If they need to increase the cost of their services they should be entitled to.

 

How many people bitching about bank profits have superannuation funds invested in our local banks???? Then they complain when their super falls........

 

There are always complainers: If people require the bank to cut interest .5% immediately, they should get out now. Sell the house, cars, what ever it is....

 

It will be far more damaging to the Australian Economy if bank revenues decline than if they have room to move and charge more.

 

If we could train Australian's to sprend less money we could solve several of our problems. Inflation at the forefront. Debt is a cancer for most, uncontrolled. Because they have borrowed too much, a business (ie the banks) should have lower revenues????? Rediculous..

 

Yes I am a bank share holder, and I enjoy the growth, the dividends and the security they offer.

 

I believe the banks aren't crazy enough to hold rates, and cop regulation from Rudd the Dudd, how ever they wont pass on the full cuts. IMHO

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  • 4 weeks later...

QUOTE (Mags @ Thursday 21/08/08 07:08pm)

""" If we could train Australian's to sprend less money we could solve several of our problems. Inflation at the forefront. Debt is a cancer for most, uncontrolled. Because they have borrowed too much, a business (ie the banks) should have lower revenues????? Rediculous.. """

 

 

 

Mags, in stating the above what you forgot to mention is that banks are part of the problem, insofar as, until quite recently they would loan money to a drovers dog. Why it was only a few months ago when they were falling over people to loan them 100% of a given property valuation - Deposits not needed, etc. Genuine probing to survey an individuals ability to pay was never part of their criteria

 

No, banks were pro actively selling money to people who could not afford it, and in the process, were counting on ever rising property valuations to cover their own backsides in the case of a default. Due diligence on their part, forget it, our banks are part of the problem, and worse still is our regulatory regime, which has no watchdogs of worth and freely allowed this predatory business to carry on.

 

Does anyone trust banks these days, of course not

 

Does anyone regulators these days, of course not

 

 

As for throwing responsibilities back on the individual, I would submit they know more about football than money management

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In reply to: watchmaker on Thursday 18/09/08 10:51pm

"As for throwing responsibilities back on the individual, I would submit they know more about football than money management "

 

Perfect line. Frighteningly true.......

 

But if a customer wants something, and they are willing to pay for it, then it isn't the bank ripping them off...just another misinformed consumer.......

 

In a democratic, liberal society like Australia, consumer law exists to protect the business NOT the consumer!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! How misinformed consumers are!

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QUOTE (Mags @ Friday 19/09/08 08:28pm)

geez you guys mustn't run businesses.

 

consumer laws presume the consumer is a retard that can't possibly read, write or understand anything. not enough responsibility is put back on the consumer.

 

the fall back position of the stupid is that they weren't told every possibility of THEIR actions.

 

there is a growing number of business owners, high medical specialists etc that are quitting or strongly considering quitting due to the court's interpretation of who gets all the responsibility.

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In reply to: Mags on Thursday 21/08/08 07:08pm

Hi Maggs

 

No doubt one of the "best" posts I have ever read.

 

Pardon my ignorance. But is not inflation defined as "cost of goods and services going up?"

 

So what are you saying about the banks being able to charge higher prices?

 

Oh now I understand! My bank shares are ok, let some one else carry the can!

 

In case no one has told you, the cost of capital to the major 4 has declined not increased

since the collapse of the financial systems. Read what the reserve bank has said.

 

So if you want inflation to drop, then you should be demanding banks pass these costs to the consumer.

 

I will throw your own argument back at you. If the banks were so stupid to lend too much money to people who could not afford it, why should they recover it from me (and you by the sound of it) who are not over our head? What abiut idiotic investments like Opes? You are actually saying that the banks have a right to fuel inflation because of their bad decisions.

 

Mate you must be living in a cave if you fear regulation! We have just witnessed the death of the so called unregulated financial system - and it has had nothing to do with unions and consumers - and you fear regulation! Geez, the crumbs that fall off the table of bloated piggies must be sweet.

 

 

Regards

 

 

Avenger

 

 

 

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In reply to: Avenger on Saturday 20/09/08 12:45pm

QUOTE
I will throw your own argument back at you. If the banks were so stupid to lend too much money to people who could not afford it, why should they recover it from me (and you by the sound of it) who are not over our head? What abiut idiotic investments like Opes? You are actually saying that the banks have a right to fuel inflation because of their bad decisions.

 

No buddy,,,no debt in my house.....

 

Banks aren't the only cause of inflation.

 

Inflation occurs due to people being willing to pay more for the same item. Cheap credit, rising wages and assets, belief that good times will follow cause it.

 

No one made people take mortgages at 10 times their annual income. Infact I would argue it was more the "Rams" of the world that did that.

 

I have to friends who HAVE to sell their homes now....Why should the business I own lower it's profits so they can sleep at night???? I never said they have to borrow that much. If my bank didn't offer it someone else would have.

 

Funny how debt is always someone else's problem or fault.....

 

Lets face facts. Australia is about the only place in the WORLD where it is normal to own a house or two, own two cars, plasma tvs, have 4 weeks annual paid holiday, sick days etc. etc.

 

It's not sustainable our way of life. Average wage earners dont have the "right" to live that way. We have just been through an extremely lucky time.

 

I'm sure there's plenty of you who disagree with me on that. But it's true. Statistics don't lie...Practically all Australian's are rich. We just borrowed beyond our means, and expect our creditors to be gentle on us.....

 

Say do you know that less than 8% of the worlds population own a car?

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