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If that is the case, I stand corrected.
Maybe the RBA wants the banks to increase their rates?
- Thread starter sptrawler
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If that is the case, I stand corrected.
Hi.
Well its not real hard to work out is it.
If interest rates are to be reduced, the banks will absorb a little.(at some time)
Because the big 4 were under pressure from Swan they passed on the the first two reductions.
Because the 3rd reduction was a non event. The banks are thinking, ok we did our bit before Christmas, but we think Swan talks with a forked tongue.
So they made a small adjustment, as good CEO's do.
Well I know one thing, and that is Swan or Gillard will not be invited to any B-B-Q's that the big 4 put up.
It will not be long before Swan really looses it with frothing at the mouth and the "chicken dance" in question time.
joea . I love politics!
Actually a couple of my mates reckon I am a stirrer.
Well its not real hard to work out is it.
If interest rates are to be reduced, the banks will absorb a little.(at some time)
Because the big 4 were under pressure from Swan they passed on the the first two reductions.
Because the 3rd reduction was a non event. The banks are thinking, ok we did our bit before Christmas, but we think Swan talks with a forked tongue.
So they made a small adjustment, as good CEO's do.
Well I know one thing, and that is Swan or Gillard will not be invited to any B-B-Q's that the big 4 put up.
It will not be long before Swan really looses it with frothing at the mouth and the "chicken dance" in question time.
joea . I love politics!
Actually a couple of my mates reckon I am a stirrer.
Julia
In Memoriam
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I see the small rise in rates by the banks as being as much a political statement as anything, i.e. telling Wayne Swan to stop his stupid political interference in their business.
They can claim every justification for the move, given the RBA's support of their assertion re higher funding costs.
There's nothing Swannie can say except continue to splutter about their 'obscene profits'.
They can claim every justification for the move, given the RBA's support of their assertion re higher funding costs.
There's nothing Swannie can say except continue to splutter about their 'obscene profits'.
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Furthermore, the myth of Australian banks being well capitalised - fresh off the MB press just today!
http://www.youtube.com/watch?v=baBokhvOvUA
As you can see, our banks are dangerously undercapitalised as they manipulated the figures during the best times of the bubble boom and rising house prices, while mortgage insurance will have zero effect in any actual bust.
From:
http://www.macrobusiness.com.au/2012/02/too-big-to-fail-act-2/
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Well at last the banks are telling Wayne Swan to shut up, about time.
As SCM says they are realy undercapitalised. The banks make say $10B profit, but that is on a property exposure of $1trillion, then there is business loans on top of that. Christ what do you expect them to make with that much investment a couple of grand.
Swan needs to get a grip and realise what would happen if the banks were only making $1B profit, They would be insolvent. What a dick.
http://www.smh.com.au/business/anz-chief-calls-for-end-to-bank-bashing-20120217-1td2k.html
Hope they mention it on the evening news, but I doubt it. They only seem to do that when anybody or their dog is bagging Abbott.
The profit figures mentioned were only meant to be an example, not necessarily acurate.
As SCM says they are realy undercapitalised. The banks make say $10B profit, but that is on a property exposure of $1trillion, then there is business loans on top of that. Christ what do you expect them to make with that much investment a couple of grand.
Swan needs to get a grip and realise what would happen if the banks were only making $1B profit, They would be insolvent. What a dick.
http://www.smh.com.au/business/anz-chief-calls-for-end-to-bank-bashing-20120217-1td2k.html
Hope they mention it on the evening news, but I doubt it. They only seem to do that when anybody or their dog is bagging Abbott.
The profit figures mentioned were only meant to be an example, not necessarily acurate.
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Well suprise suprise, the RBA said yesterday, they agreed with the the banks lifting their interest rates.
Makes Swan and gillard look like stupid,with all their ranting.IMO
Makes Swan and gillard look like stupid,with all their ranting.IMO
Glen48
Money can't buy Poverty
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Banks want to lift rates to attract depositor's and stay afloat , Stevens and Swam want the get rates down to attract home owners and stop the housing market tanking .. who will will ?
The banks I would say
The banks I would say
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The RBA and the banks are not against each other - they are all banks, and they all have fairly common interests.
The RBA under Stevens does not want the housing bubble inflated any further - this much has been made clear over the past year. This is irrelevant to the banks' funding costs, but the RBA will not ever badmouth the banks.
The RBA under Stevens does not want the housing bubble inflated any further - this much has been made clear over the past year. This is irrelevant to the banks' funding costs, but the RBA will not ever badmouth the banks.
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Here we go again?
From next Friday ANZ will lift its standard variable mortgage by six basis points to 7.42 per cent per annum.
Its interest rates for business customers will also rise by the same amount.
It is the second time this year the bank has raised its lending rates despite the Reserve Bank leaving the cash rate unchanged.
ANZ says it had to make the move because of rising costs.
Story
From next Friday ANZ will lift its standard variable mortgage by six basis points to 7.42 per cent per annum.
Its interest rates for business customers will also rise by the same amount.
It is the second time this year the bank has raised its lending rates despite the Reserve Bank leaving the cash rate unchanged.
ANZ says it had to make the move because of rising costs.
Story
Well I think Swan advised the banks to pass on all the rate decrease prior to last Christmas last year, and suggested there would be another decrease in the new year.
The decrease did not come!
The banks are now waving a red flag at Stevens and the RBA.
And we have this thing called the unemployment figure of 5.3% which is just a joke.
So when the shadow boxing folds, we will see the rate figure go in the correct direction.
If Swan wants to live in a ivory tower that is disconnected to real Australia, the let me know! I know the answer.
Paul Howes is spot on!!
0.5% would suit the Australian economy. But then I have been wrong before.
joea
The decrease did not come!
The banks are now waving a red flag at Stevens and the RBA.
And we have this thing called the unemployment figure of 5.3% which is just a joke.
So when the shadow boxing folds, we will see the rate figure go in the correct direction.
If Swan wants to live in a ivory tower that is disconnected to real Australia, the let me know! I know the answer.
Paul Howes is spot on!!
0.5% would suit the Australian economy. But then I have been wrong before.
joea