People hate rate rises = Politicians hate rate rises
People hate banks = Politicians hate banks
People hate politicians = Politicians hate RBA
Banks love money = Banks love rate rises
People love money = People love banks
A Venn diagram
Oh, Joe! Wayne! Save us from capitalism! Show Big Banks how to compete like legendary runner John Landy — to stop and pick up fallen runners and customers. Show us how to make profits so it won’t hurt others; how to make moral profits with only beautiful social outcomes.
Remember, banks love us
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Don’t hate banks! Banks love us.
Banks love profit = Banks love us
‘Over the last three years, the main Australian retail banks have paid out $107 billion in interest on deposits (about $700 million per week) … banks paid out $43 billion in dividends to investors — superannuation funds (people saving for retirement) and retirees.’
— writes Steve Münchenberg, chief executive of Australian Bankers Association. (Don’t you love his helpful phrase?: “people saving for retirement”.) He continues:
‘…and around $15 billion has been reinvested into growing their [the banks’] businesses over this time. Australia’s banks must remain solid and healthy if they are to continue to support Australia’s growing economy.’
Mmm, let’s see, $107 billion + $43 billion = $150 billion. Banks kept $15 billion, that’s 10%, which was “reinvested” so they can “remain solid and healthy.” Nice work.
(In comparison, we can get a 4ish% to 6ish% return on a high interest rate deposit account or around 7% for term deposits. CBA and ANZ home rates are now 7.81% and 7.80%. The Herald Sun: ‘Reserve Bank figures show in October 2007 home loan customers, on average, paid 1.8 percentage points above the official cash rate for their mortgage. Now it’s 2.9 per cent.’ See, banks are brilliant! Capitalist geniuses.)
That’s why banks love us. We give and give.