Comments on: How to re-design the Australian banking sector http://www.crikey.com.au/2008/10/14/how-to-re-design-the-australian-banking-sector/ now with extra source Sun, 12 Feb 2012 06:22:59 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Sean http://www.crikey.com.au/2008/10/14/how-to-re-design-the-australian-banking-sector/#comment-22754 Sean Thu, 01 Jan 1970 10:00:00 +0000 #comment-22754 Don't disagree with much of this, but why can't the 'experts' at the RBA and APRA come up with sensible proposals?<br /><br />> First off, the banks have to start giving back their higher funding margins, starting with the 0.20% not passed on from last week's 1% rate cut from the Reserve Bank. Holding onto higher interest costs to help finance their more expensive fund raisings is no longer an option or an excuse. <br /><br />That's all very well, but when have the banks been an arm of a government socialist enterprise? Are they really getting a lower cost of capital internationally just because of a government guarantee, the same guarantee being levied all over the OECD? It's a little like every soldier in the army being promoted one rank. They need to ensure a fighting fund against the expected higher default rates and higher cost of money going forward. Having said that, top bank executives pay themselves multi-million dollar salaries and book handsome profits every year -- proof that they definitely are not part of a socialist government apparatus.<br /><br />> Time to give that back to the customers fellers! And time the Federal Goverment told them to do just that!<br /><br />Oh, so all the banks definitely *are* going to be nationalised then, run as not for profits for the public, by the public -- not before time, I say. The current Federal govt has just taken great pains to distance itself even further from the RBA by a new Act of Parliament, mainly so they cannot get the blame if things go wrong, not showing great courage and responsibility there -- hence, as they frequently stress, they do not set interest rates or control the banking sector. Seems like a weasel act to me. Don’t disagree with much of this, but why can’t the ‘experts’ at the RBA and APRA come up with sensible proposals?

> First off, the banks have to start giving back their higher funding margins, starting with the 0.20% not passed on from last week’s 1% rate cut from the Reserve Bank. Holding onto higher interest costs to help finance their more expensive fund raisings is no longer an option or an excuse.

That’s all very well, but when have the banks been an arm of a government socialist enterprise? Are they really getting a lower cost of capital internationally just because of a government guarantee, the same guarantee being levied all over the OECD? It’s a little like every soldier in the army being promoted one rank. They need to ensure a fighting fund against the expected higher default rates and higher cost of money going forward. Having said that, top bank executives pay themselves multi-million dollar salaries and book handsome profits every year — proof that they definitely are not part of a socialist government apparatus.

> Time to give that back to the customers fellers! And time the Federal Goverment told them to do just that!

Oh, so all the banks definitely *are* going to be nationalised then, run as not for profits for the public, by the public — not before time, I say. The current Federal govt has just taken great pains to distance itself even further from the RBA by a new Act of Parliament, mainly so they cannot get the blame if things go wrong, not showing great courage and responsibility there — hence, as they frequently stress, they do not set interest rates or control the banking sector. Seems like a weasel act to me.

]]> By: mech http://www.crikey.com.au/2008/10/14/how-to-re-design-the-australian-banking-sector/#comment-22755 mech Thu, 01 Jan 1970 10:00:00 +0000 #comment-22755 All this talk of "re-design" is so beside the point. What is the Australian government's surplus? Somewhere between $10 and $20 billion? And they are attempting to guarantee nigh on $1 trillion worth of imploding bank debt with this? Australia will go bankrupt before the sheeple of Australia have time to line up outside their banks and get hold of their savings. It's a bloody joke, and I would laugh if it wasn't so serious. All this talk of “re-design” is so beside the point. What is the Australian government’s surplus? Somewhere between $10 and $20 billion? And they are attempting to guarantee nigh on $1 trillion worth of imploding bank debt with this? Australia will go bankrupt before the sheeple of Australia have time to line up outside their banks and get hold of their savings. It’s a bloody joke, and I would laugh if it wasn’t so serious.

]]> By: Ross http://www.crikey.com.au/2008/10/14/how-to-re-design-the-australian-banking-sector/#comment-22756 Ross Thu, 01 Jan 1970 10:00:00 +0000 #comment-22756 Perhaps the banks should be made to only lend 90% of the value of a house. The real value not the one placed by a valuer who is helping the purchaser.<br /><br />No more mortgage guarantees to cover bad debts? Would this help?<br /><br /> Perhaps the banks should be made to only lend 90% of the value of a house. The real value not the one placed by a valuer who is helping the purchaser.

No more mortgage guarantees to cover bad debts? Would this help?

]]> By: Paul http://www.crikey.com.au/2008/10/14/how-to-re-design-the-australian-banking-sector/#comment-22757 Paul Thu, 01 Jan 1970 10:00:00 +0000 #comment-22757 Banking is a complex issue...... however history must be examined ><br />http://www.aph.gov.au/library/Pubs/RP/2002-03/03RP03.pdf <br />Look at the following link, until we deregulated the banking sector under the Keating government in 1983 our foreign debt never exceeded 13% of GDP (that’s a 80 year trend) ever since our government gave over banking matters to the RBA things have gone from bad to worse, in just 6 short years foreign debt tripled to 45% of GDP (by 1989) and has continued to spiral out of control to the current situation where foreign debt is now at a whopping 71% of GDP in 2001. Our dollar being floated and not being restricted to reflect value against gold, has led to our currency being devalued at the whim of the market, our constitution gave the power to the GOVERMENT to control and regulate our currency, not to a self interested RBA which is presented as a government institution but in reality follows the whims and mantra of the Golbalist agenda which has nothing to do with the best interest of Australians. Let this be said our constitution clearly states that the government has the power to create laws for the good governance of the Australian people...... This continued path toward a globalised economy is the very reason their is a financial crisis, and NO globalization is not moving forward, nor is there a need for an international monetary policy just a return to good governance which we had prior to deregulation regardless of whether Labor or Liberals were in power. Please think and consider, then stand up and be Australian... Fight for our way of life... let your local members of parliament know what you think of this betrayal of the Australian people. <br /> Banking is a complex issue…… however history must be examined >
http://www.aph.gov.au/library/Pubs/RP/2002-03/03RP03.pdf
Look at the following link, until we deregulated the banking sector under the Keating government in 1983 our foreign debt never exceeded 13% of GDP (that’s a 80 year trend) ever since our government gave over banking matters to the RBA things have gone from bad to worse, in just 6 short years foreign debt tripled to 45% of GDP (by 1989) and has continued to spiral out of control to the current situation where foreign debt is now at a whopping 71% of GDP in 2001. Our dollar being floated and not being restricted to reflect value against gold, has led to our currency being devalued at the whim of the market, our constitution gave the power to the GOVERMENT to control and regulate our currency, not to a self interested RBA which is presented as a government institution but in reality follows the whims and mantra of the Golbalist agenda which has nothing to do with the best interest of Australians. Let this be said our constitution clearly states that the government has the power to create laws for the good governance of the Australian people…… This continued path toward a globalised economy is the very reason their is a financial crisis, and NO globalization is not moving forward, nor is there a need for an international monetary policy just a return to good governance which we had prior to deregulation regardless of whether Labor or Liberals were in power. Please think and consider, then stand up and be Australian… Fight for our way of life… let your local members of parliament know what you think of this betrayal of the Australian people.

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