And so the Reserve Bank has given a cut in interest rates and, ad nauseum, the Federal Treasurer, Wayne Swan huffs and puffs about the greed of banks and the patter of feet as customers exercise their right to change to another bank appearing more customer friendly.
Opposition Treasury spokesman Joe Hockey does the same and sticks it to Wayne Swan as well, quoting the number of occasions this type of speech has been made. Hockey must think we forget the big fuss and promises he made a couple of years ago on the same topic.
From when I first started to take a bit of interest in banks (you know, for buying a house and that sort of stuff) and also an interest in their interest; I’ve heard the same song sung by our Pollies from Liberal, Labour and all other camps. A film clip would be better and call it the Never Ending Story.
Boring and repetitious; I guess they have to sing for their supper despite nothing of substance being accomplished with each huff and puff. This lip service applies equally to all parties. They would have heard the same bull rolled out before they became politicians. It is incredibly annoying.
The banks will ” whatever,whatever, I’ll do what I want”. And perhaps that is just as well within reason, because Aussie banks didn’t fall over in the Global Financial Crisis.
I don’t know enough of economics to criticise banks for not passing on full adjustments allowed through the Reserve Banks decisions. It appears that we have a pretty healthy banking system.
I pretty much agree with the terminology that ” you have to spend money to make money”. As long as it’s not the customers that unfairly spend the money for the CEO’s and shareholders to make obscene amounts of money; that doesn’t balance in my books (sorry about the incredible puns).
A couple of links below to news articles;
Word for today: Interest: …. A variable fact of life.
More to come: same blog time, same blog channel.