View Poll Results: What will the big 4 do, IF they all do the same?
Drop 25 points
7
23.33%
Drop 50 points
2
6.67%
Drop a different figure
18
60.00%
Raise it! ... :EEK:
3
10.00%
Voters: 30. You may not vote on this poll
RBA drop 50 base points, but ...
Sep 23rd 2012, 8:03 am
#31
BE Enthusiast
Joined: Mar 2009
Posts: 471
Re: RBA drop 50 base points, but ...
swans makes very valid points... he must work for a bank lol 
Sep 23rd 2012, 10:16 am
#32
Daffyd Duck
Joined: Jul 2008
Location: Paradise
Posts: 5,636
Re: RBA drop 50 base points, but ...
id rather see borrowers paying for stronger banks (via higher interest rates and fat profits) than general taxpayers shouldering the bailout of uncontrolled binge lending (eg RBS).
Sep 23rd 2012, 10:51 am
#33
Joined: Jun 2006
Posts: 4,555
Re: RBA drop 50 base points, but ...
Unrelated. Irresponsible lending lead to the RBS Northern Rock messes. You could have huge rates and go bust because you lent without due diligence.
Originally Posted by commonwealth
id rather see borrowers paying for stronger banks (via higher interest rates and fat profits) than general taxpayers shouldering the bailout of uncontrolled binge lending (eg RBS).
Sep 23rd 2012, 11:02 am
#34
Joined: Jun 2006
Posts: 4,555
Re: RBA drop 50 base points, but ...
Yep competition never cuts costs for consumers. Percent dif between lending rate and borrowing rate is not ROE.
APRA changed regulations in Australia after Wastepac nearly collapsed in the nineties. Those regulations are regarded as one of the main reasons Australia avoided the worst real estate excesses other countries ran into.
Toodle doo and learn some history and economics.
APRA changed regulations in Australia after Wastepac nearly collapsed in the nineties. Those regulations are regarded as one of the main reasons Australia avoided the worst real estate excesses other countries ran into.
Toodle doo and learn some history and economics.
Originally Posted by swans
Amazing the shite people come up with to fool themselves they've made reality disappear.Where did you get that nonsense from.
Savings rates are variable,like a mortgage they have nothing to do with cash rate.At present I get 5.1%on an e account with westpac,it has to be renewed every 3 months,the guy at the bank does it for me.The top rate from memory was 5.8%,cash rates are down 1%,for that account rates are down 0.7%,seems reasonable to me,what would your version of reality be?
WBC are very happy to pay me that 5.1%,they are happy to lend it out say at an average rate of 7.1%. Round it shall we,the bank buys the money at 5% and sells it at 7%,gross profit margin of 2%,what would your version of reality be?That is net interest margin,nothing at all to do with ROE,do you know what ROE is?
APRA is a watchdog (1 of)that overseas financial institutions,without an APRA licence it is illegal to operate as a DTI in oz,do explain how you manage to come to the conclusion that APRA saved us from the GFC which was more of a north atlantic/med crisis.Neither the banks nor APRA saved us from the supposed GFC.
I hope those banks continue to make profits,would you rather be in the deep shit that the aforesaid N/A/med is in.
Ah the stupidity of the sheep as they all bleat the same,I'll ask the same question again,we will all be dead before you or any body else will be able to explain it.
WHY WOULD COMPETITION REDUCE MORTGAGE RATES OR PRICES.
PLEASE,PLEASE explain,I would love to know.
Geordie down under
Savings rates are variable,like a mortgage they have nothing to do with cash rate.At present I get 5.1%on an e account with westpac,it has to be renewed every 3 months,the guy at the bank does it for me.The top rate from memory was 5.8%,cash rates are down 1%,for that account rates are down 0.7%,seems reasonable to me,what would your version of reality be?
WBC are very happy to pay me that 5.1%,they are happy to lend it out say at an average rate of 7.1%. Round it shall we,the bank buys the money at 5% and sells it at 7%,gross profit margin of 2%,what would your version of reality be?That is net interest margin,nothing at all to do with ROE,do you know what ROE is?
APRA is a watchdog (1 of)that overseas financial institutions,without an APRA licence it is illegal to operate as a DTI in oz,do explain how you manage to come to the conclusion that APRA saved us from the GFC which was more of a north atlantic/med crisis.Neither the banks nor APRA saved us from the supposed GFC.
I hope those banks continue to make profits,would you rather be in the deep shit that the aforesaid N/A/med is in.
Ah the stupidity of the sheep as they all bleat the same,I'll ask the same question again,we will all be dead before you or any body else will be able to explain it.
WHY WOULD COMPETITION REDUCE MORTGAGE RATES OR PRICES.
PLEASE,PLEASE explain,I would love to know.
Geordie down under
