http://www.lendingcentral.com/2009/11/05/rudd-wishes-banks-were-as-quick-cutting-rates/ The first word in mortgage news Fri, 12 Mar 2010 23:07:21 +0000 http://wordpress.org/?v=2.5.1 http://www.lendingcentral.com/2009/11/05/rudd-wishes-banks-were-as-quick-cutting-rates/#comment-22310 SMc Sun, 08 Nov 2009 01:19:38 +0000 http://www.lendingcentral.com/?p=3236#comment-22310 Rob, he hasn't got any say on rates, but that isn't the subject of this article. It's about how the banks don't pass on cuts for over a month, but pass on increases in 2 days. Government decisions and economic circumstances have led to a massive increase in the bank's market share, profits and doubling of share prices. In essential economic services such as banking and finance, where there are monopolies between a few (and getting fewer), it's not only his right to comment, but his duty to act - well overdue. It's unacceptable that with people's government having guaranteed deposits that the people continue to fund the high profits. Simply, the banks results don't support the rhetoric of your and their supposition of higher funding costs. What part of that reality don't you accept? Rob, he hasn’t got any say on rates, but that isn’t the subject of this article. It’s about how the banks don’t pass on cuts for over a month, but pass on increases in 2 days. Government decisions and economic circumstances have led to a massive increase in the bank’s market share, profits and doubling of share prices. In essential economic services such as banking and finance, where there are monopolies between a few (and getting fewer), it’s not only his right to comment, but his duty to act - well overdue. It’s unacceptable that with people’s government having guaranteed deposits that the people continue to fund the high profits. Simply, the banks results don’t support the rhetoric of your and their supposition of higher funding costs. What part of that reality don’t you accept?

]]> http://www.lendingcentral.com/2009/11/05/rudd-wishes-banks-were-as-quick-cutting-rates/#comment-22043 Rob Fri, 06 Nov 2009 01:08:06 +0000 http://www.lendingcentral.com/?p=3236#comment-22043 Phil, we all know Rudd has no say in what happens with interest rates. The cash rate is determined by the RBA and it is the RBA that indirectly (via monetary policy) has some say in what banks should be pricing their funds at. However, due to Australia's inability to save, Rudds decision to extend the first home owners grant meant the banks had to borrow more money from the capital markets to fund these home loans. Whilst the capital markets have opened up a little, funding remains quite expensive putting pressure on the banks margins so you can't blame them for raising rates straight away. Why should they wear the additional costs? Like any other corporation their there to make money for their owners / shareholders. Rudd should be encouraging people to reduce debt and not to get further in debt. The less people are in debt the less impact interest rates has on people. Phil, we all know Rudd has no say in what happens with interest rates. The cash rate is determined by the RBA and it is the RBA that indirectly (via monetary policy) has some say in what banks should be pricing their funds at. However, due to Australia’s inability to save, Rudds decision to extend the first home owners grant meant the banks had to borrow more money from the capital markets to fund these home loans. Whilst the capital markets have opened up a little, funding remains quite expensive putting pressure on the banks margins so you can’t blame them for raising rates straight away. Why should they wear the additional costs? Like any other corporation their there to make money for their owners / shareholders. Rudd should be encouraging people to reduce debt and not to get further in debt. The less people are in debt the less impact interest rates has on people.

]]> http://www.lendingcentral.com/2009/11/05/rudd-wishes-banks-were-as-quick-cutting-rates/#comment-22037 Phil Thu, 05 Nov 2009 23:58:04 +0000 http://www.lendingcentral.com/?p=3236#comment-22037 Yeah well do something about it ! Krudd your all talk. Yeah well do something about it ! Krudd your all talk.

]]> http://www.lendingcentral.com/2009/11/05/rudd-wishes-banks-were-as-quick-cutting-rates/#comment-22022 Interest Rates » Rudd wishes banks were as quick cutting rates | Lending Central … Thu, 05 Nov 2009 20:54:30 +0000 http://www.lendingcentral.com/?p=3236#comment-22022 [...] Read the rest of this great post here [...] [...] Read the rest of this great post here [...]

]]>