The banks are bluffing themselves into a huge windfall.
And useless politicians are buying the bullshit line being spread by teh banks' willing allies, teh media, who just love a doom and gloom tale.
PATHETIC!!!
Government should get teh fuck out of the market and say "hey banks, you MAKE MONEY BY LENDING MONEY, if you STOP LENDING you STOP MAKING PROFIT so figure out HOW you are going to lend money and SORT OUT THE MESS YOU CREATED" (note appropriate points where shouting and table thumping should occur).
Politicians get your arses out of business or you'll get cleaned out by the sharks.
Simple as that.
Let the sharks fight the sharks.
SG
And now the shark with the sharpest teeth and biggest appetite wades in to the panicy mackerel...
http://www.theaustralian.news.com.au/business/story/0,28124,24647905-643,00.htmlHow utterly, pathetically, predictable.
Useless bone headed politicians handing taxayer dollars to the absolute greed merchants.
I have nothing against the grreed merchants, heck, they made me plenty of dosh.
But if you're going to be a greed merchant you should get a frigging huge smack on the knuckles when you fuck up.
But it just isn't being allowed to happen.
They won't bail out GM and rightly so. But for drying out loud if you are going to have bailouts then how about you look after teh people who actually do stuff and add value in teh process rather than the paper shufflers ho have honed their skills in ripping each other off during teh bull market and are now preparing to feast on inexperienced wannabes from teh government side.
So inexperienced they don't even know how their basic guarantee can work in the way they think it can
http://www.theaustralian.news.com.au/business/story/0,28124,24648845-20501,00.htmlwhich of course will prompt more screaming from teh banks and dogwhistle Kruddly Do-Nothing will want to be seen to be DoneEverythingKnowEverything Kev and will promptly take on even more of the risk the banks should take as part of their commercial activity.
FUCKING PATHETIC!
GET OUT OF THE MARKET AND TELL THEM TO SORT OUT THEIR MESS!!!!
They seem to be able to find the odd $16 billion or so when they want to buy something...
http://business.smh.com.au/business/st-george-merger-sealed--now-for-the-costcutting-20081113-668t.htmlso all these useless fuckers in Cantberra are doing is funding a consolidation in teh Australian banking industry that will come back to haunt us in 2, 3, 5 or perhaps 10 years time.
And what is the immediate impact I hear you ask?
Well it seems people want their savings to be safe (understandable really) so they're heading to teh Commonwealth Bank
http://business.smh.com.au/business/aggrieved-does-not-explain-the-loss-20081113-668p.html?page=2This is the very same bank that seems to have loaned a couple of billion to ABC Learning and Allco and should thereofre get a kick up teh arse and major execs should be thinking not about bonuses (should be zero at best) but how they are going to get things moving again. But no, because Kev has given the banks a nice guarantee people are sticking their money into accounts that pay a meagre 1 or 2 percent interest rate.
At exactly the time when teh banks are crying that the cost of money is too dear in the wholesale market.
For those who don't get what this means it's like this. The RBA sets a certain rate for funds, say around 6%. The financial instituions can access a certain amount of this. The rest they get from deposits (is they take them under their charter) or they borrow from other financial institutions at a rate such as LIBOR (London Interbank Offered Rate) which is currently much higher as, wait for it, money supply is scarce.
Which even the thickest of the thick can see begs the question - if cash is so scarce and banks can lend it to each other at these much higher LIBOR rates (above 10% not uncommon) why are they not giving a much better deal to retail bank account holders in terms of paying them interest rates above a meagre 1 or 2 percent?
Because the government thickies are having a great time thinking they're saving the world by throwing not just pots but 40 foot shipping containers full of $100 bills at the banks. So it is in the banks best interests to keep the panic going. Who would knock back free money after all? And because of all the noise about the GFC (global financial crisis) nobody is stopping to ask the question about retail deposit rates.
Just another reason why government should get out of the market. Let the banks figure out what they have to do to get a greater level of capitalisation - be it increased retail interest rates to consumers or selling back people's mortgages at a discount or perhaps something else altogether. But it should NOT be our money, for that is what it is. The government can only spend what it takes off us.
What next from our beloved leader?
A field trip with Dean Mighell where he won't look or touch not because the hooker is a transsexual but because he's tipsy?
Pathetic.
SG
