and a good idea for Australia .?So here's the idea .Government implements peoples bank (or opposition proposes it ) Kind of like the original idea of the commbank and medibank when it was introduced .The current government inadvertadly delivered the big 4 a virtual monopoly when they guaranteed them in 2008/9 and the big 4 bought up their non guaranteed competiors ,
So there are a number of ways of doing this .Give remaining building societies and mutuals gov guarantee, or set up ne peoples bank via Aust post (like the NZ post idea) .The idea is that depositors get a higher rate and borrowers get a lower rate as their is easier access to guaranteed funds and also there is less pressure to give mega returns to execs and institutional investors .
Something must be done about the current situation,the big 4 profits are obscene ,their excuses for their mega margins and fees are limp and they don't have competition and the economy stooges along,perhaps this is a way out .perhaps there are other seabreezers with other better ideas
How about rather than let banks dictate things, link inflation/deflation to income tax. If things are slow drop the rate by 1%, if hot raise it. That way it dosent just benifit home loan owners and screw retirees or vise versa. Still controlled by the reserve to stop a govt money grab.
****, how hard is it.
I'd prefer it if the banks were treated like any other business. IE they can prosper or fail based on their decisions. It is unbelievable that such profitable businesses are so protected as they are.
Banks should be given a choice. Either accept their market will be deregulated and in return they lose their protection and are free to do what they like or they keep their protected status and in return they are heavily regulated, including limiting the renumeration of their executives to something like five times the amount a teller earns in their bank.
Back in the middle of last century,..I seem to recall Whichbank used to be owned by the guvmint. It was full of guvmint employees all doing f. all because it was a govmint bank so they were free to do f..all for better pay and conditions than all the other banks.
Same as PMG back then which later became Telecom which later became Telstra. And numerous other govmint owned businesses which were eventually floated off as private companies because the country was becoming bloated with public servants who didn't really give good service.
To pay them all, it offerered the lowest interest on deposits and charged higher interest on loans. I think the interest on savings was a whole 2.5 percent per annum.
On the face of it, it would seem like a stupid move to get back into bankng after spending many years trying to get out of it.
But then, after spending many years getting out of the telecommunications business by selling Telstra back to the public, (who owned it in the first place), and then getting back into it by starting up the NBN, I suppose it would be entirely consistent for the present government to get back into the banking business.
After all their other successes at handling things, like pink bats, live cattle exports, immigration and border protection, why not give banking another try.
The issue with credit unions is their staff have strict rules to follow and cannot bend them to make a deal. Banks staff on the other hand can bend the rules a bit to do the deal. They are rewarded to do this. However sometimes the proverbial hits the fan and the bank is in trouble with too many workers bending the rules.
Easy fix! bring competition in the industry............ Japs banks???? That would send the bastards in a interrest drop frenzy![}:)]
