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Are the banks ripping us off?


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

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In reply to: Avenger on Saturday 27/09/08 11:25am

i'm huffing and i'm puffing avenger, like a big bad wolv....


.....and i accept your $5,000/hr i think i will get some good value out of you. forget your family life, forget weekends. i own you now.


interesting i hear they have put the FBI onto these companies and since the precursor of being an FBI agent is either being an accountant or a lawyer you can bet your bottom dollar there will be some nervous US execs out there.


have you also turned into a socialist?


da comrade i am socialist wolv now, nyet to capitalist piggies.


yours truly


boris wolvenoff

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In reply to: wolverine on Saturday 27/09/08 03:24pm

Lol Wolv


OK Boss, when do I start? You own me, but no physical OK? Ian Withchurch from 'Peak Oil'

wanted to get physical with me (obviously he hasn't seen me - he may be thinking of the original "Avengers"- otherwise he wouldn't offer)


And don't get me started on accountants. Their promoting bull s.... Accounting Standards

has led to Directors producing meaningless accounts. Accountantants have moved away from the concept of conservatism where a $ was reported to be a $, to where what you read is "This is probably a $." The CA motto of "without fear or favour" has truly become "how much and what answer do you want". The collapse of the financial system because of immitigated greed has not happened overnight. How come all these banks had clean Audit reports? How come the rubbish that they were selling was rated AAA by agencies? Just another examples of paying for million of dollars to fat piggies and getting nothing in return and they cry "do not regulate us" we know best.


And don't forget Wolf, in me you are getting a flyer, I don't come to you, you relocate your business to Melbourne (if you are interstate). And my first decision is to sack your Accountant and write off 30% of your asset to Zero. But don't worry, next year i'll sell these assets for a few $ and I'll be a hero in your eyes.


Oh and by the way, just in case those pesky average Australians cause more problems, and your business goes bad, I have had my laweyer draft a "Golden Parachute" clause in my contract.










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In reply to: Avenger on Sunday 28/09/08 10:02am

Yes there has been one all mighty fiscal P!ss up.

Low interest rates, massive liquididty.

Fuelled by Alan Greenspans policies and fallout from September 11.

The US probably should have gone into recession in 2002 but due to 911 they bailed it out.

Delayed the problem and the world kept on partying with the cheap money.


We have just witnessed the worlds biggest longest economic p!ssup in history, we have blown all our cash, and it will be back to work monday with a big hangover.


Some of the banks may hand down the rate cut others won't.

The banks need more money to pay for the write offs that are to come.

We won't be affected like the US but the banks need to save their pennies now, or suffer losses.

Unfortunately for the mortgage originators life looks tough.

The banks increased their market share by paying third parties to market their loans.

It was costing the banks money to fund these Mortgage originators, but the banks were happy to pay it as it became 10-20-30% of their home lending and they did not have to set up a fully fledged branch.


Now that money is tight to increase margins, and with limited money supply.

The banks will be tempted to reduce originator margins and pull the business back inside the bank. This will increase the banks margin and stop the layoff of bank staff.

Mortgage originators are really a low cost reseller networks for the banks.

Some banks will pull or reduce their support for the reseller channel

The market probably needs a shake out, the good operators will survive, the smaller less aggressive franchisees will close.


This is probably the biggest financial crisis since the great depression.


Its been the greatest party of all time.

I certainly hope to walk away with nothing more than a headache.

But there seem to be a few who have partied way to hard.

Lying naked on the floor with a $50 note in their hand.




I've spent all my money on beer and women...

The rest I just wasted.

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In reply to: uraniumbull on Thursday 02/10/08 08:15am

Hi Uraniumbull


The more things change, the more they stay the same.


In the '87 crash when all banks got into trouble because of GREED by a small percentage of fat piggies, the mantra was the same. We have to save our banks because banks are the life line of business etc. etc. Now we see it all over again.

What banks want is privatising profits and socialising losses.

At a time of greatest liquidy need in our society, they are talking about increasing interest rates even if the reserve bank drops rates. Reason? They need to maintain profits. Fools and idiots. They have their heads so far up their fat piggies asses that they can't even smell themselves! What do you think will happen to their profits when people start defaulting on loans?


I have to laugh at posters who blame the average American and Australian as the cause of this crisis because they borrowed too much.

Let see now, banks were forced to loan - Some truth in this.

Banks packaged this mortgages and on sold the to other institutions. With AAA ratings.

These institutions repackaged and on sold them again with AAA ratings - and so on and so on. Of course all these repackaging was pushed on to the banks by the common people right?

So we had a pyramid which worked OK as long as the poor smuck paid his mortgage.


Then along came other fat little piggies in the form of hedge funds who speculated the price of oil all the way to US $ 145. With the resultant hike in prices of food and other necessities,the poor smucks could no long afford their mortgage repayments and now the pyramid is collapsing.


And always the same mantra - there is no speculation, the free market is best, the pricing mechanism of free enterprise fixes all.


Bull shit!


And to make matters worse, I have watched in horror as the reserve bank of Australia has attacked the average Australian by increasing interest rates by nearly 5% to combat inflation. What were the major causes of our inflation? Rising petrol prices (Because of speculators) and rising price of food due to the drought. I defy anybody to explain how an increase in interest rates will drop the price of petrol or make the drought go away.


As I keep telling every body, you want the problems fixed? Appoint me as absolute dictator!













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QUOTE (Avenger @ Thursday 02/10/08 02:35pm)

You've got my vote, Avenger !


Of course there'll be a quid pro quo involved ......... perhaps CEO of a quango.







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In reply to: henrietta on Thursday 02/10/08 03:46pm

LOL Henrietta


Had to google that!



Done deal!


I think the Commonwealth Bank would qualify. Is that good enough?

Oh, and just for a sweetner, I'll throw in a clause that 'whatever action you take cannot be looked at or questioned by any present or future body thereby making you immune to any prosecution you may or may not be liable for"







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QUOTE (Avenger @ Thursday 02/10/08 02:35pm)

Good post Avenger, though I think this thread should be extended to supermarkets, oil companies, and local government. Each are price gouging in their insidious ways, yet there hasn't been much discussion about it


I mean, in a terrible economic climate the share price of, say, WOW looks to be travelling well, and their profits seem to be excellent.


On the price of petrol, yes we do have "foolwatch" protecting us, or so the government says. Same with food, where there is yet another watch. But it seems to me that our supposed watchdogs, the ACCC are in bed with those that control the food chain, happily allowing typical everyday items to be priced at ten times the gate cost of the producer.


As with rotten banking practices, I'm sure plenty of people here smell a rat.

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In reply to: Avenger on Thursday 02/10/08 02:35pm

Yes Avenger,

and those same greedy piggies in 1987, have one again squandered the billions.

The stupid/greedy Banks have once again lent money to the wrong people with little care or due diligence. Home owners are the small fry.

Why banks lent out Gazillions to private equity, hedge funds etc is beyond me.


Why they lent Alan Bond, or Cristopher Skase all those billions, or how Tricontinental, Bank of Victoria and South Australia all went broke was complete lack of financial control by the banks.

Lending billions to people with vague plans.


Its no better now.

I have been telling people for years that ABC Learning centres was built on a house of cards, how the banks lent to that lot I have no idea.

But hey there is worse, much worse than ABC out there that have lost hundreds of billions.


The hundreds of billions people wasted has all gone somewhere, and it has fuelled our excessive lifestyles, it has stimulated our economy.


Not just householders borrowing too much, its the big guys to blame for this mess and the banks were negligent in handing out the money so easily.


A few years ago I went to borrow $15,000, secured against a car.

I could not believe it the banks said no, unless I provided fully audited accounts for the past 2 years, signed in blood by my accountant. Self Assessed taxation office approved accounts were not allowed!


A few weeks later I went to borrow $2M and a month later $6.5M

Flashed a few numbers past their eyes.

Guess what the bank said yes!

They came to my premises twice, and approved the loans for the projects in principle within 1 hour.




I have no doubt that if I had asked for $20M I would have got it, and I have no doubt the bank had no real idea of the financial risks involved.


In the end I did not go through with the deal as there were some pretty big financial risks.


Another company ended up coughing up $1.2M more, for the project than I was willing to pay,

This company ended up losing around $1M, and is now in receivership, and the banks will probably lose $1M-$1.5M on that deal as they sell off the assets.


So glad I walked away, but the banks lent more money to a far less capable company, and did zero due diligence.


My story is repeated thousands of times around this country and these stories are about to haunt the banks for years



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