'The final cherry on top, is that the liberals just need to sit back and watch Labor take on the banks, as well as the miners, the farmers, and the asylum seekers. With the Greens blocking the rear Labor is circling the drain.'

Hahahaha!

That's heaps funny.

*but I would like to suggest that we start a government debit card, to be issued to all welfare recipients. All government pensions & other welfare payments could be credited to this card.*

Hasbeen, that would be wonderful! It would save the banks billions
in operating costs alone. You don't really think that banks make
money from welfare payments going in and out each week? Do you know
how much it costs to have the bank teller smile at you, or operate
that ATM?

Banks today work on an average spread of around 2.2%, which is
about half of what it was in the 80s and early 90s. On housing
loans, which are their least profitable business, their spread
is less. Right now Westpac will pay you 7% on your money over
5 years, actually charging you little more for a housing loan.

So if banks cannot recoup their increased cost of funds, they will
simply start to ration out home loans and focus on more business
loans.

Why total bank profits are up, is because their total lending
is up. Return on assets, ie the total amount on their books,
runs at around 1%, on a total figure of around 2.2 trillion$

So if they drop their interest charged by 1% or pay 1% more
for all their loans, they will effectively make zero.

Sorry, it ain't gonna happen, unless of course they can dramatically
reduce costs, with your "you beaut" scheme.

Not so Yabby.Banks with the aid of the fractional reserve banking can make 1000% on deposits.They make record profits in hard times for many.These institutions don't make anything of tangible worth.They are the money changers,the gate keepers of the medium of exchange.Why are they so powerful?

How are your bank shares going Yabby?

*How are your bank shares going Yabby?*

My bank shares are doing ok Arjay. It is precisley because
I own them, that I take so much trouble to understand the fundamentals
of Australian banking. I stand to lose the lot, if the banks
get it wrong, as in the US or Britain. You too can buy bank
shares, without even leaving your computer screen Arjay, if
you are prepared to risk your life's savings.

My bank shares are not doing as well as my BHP shares BTW.

*Banks with the aid of the fractional reserve banking can make 1000% on deposits*

They cannot Arjay, you still after all this time, don't understand
the way the banking system works. A simple check of a bank balance
sheet would clarify this, but perhaps you don't understand balance
sheets. I can't go to school for you Arjay. But keep dreaming.

http://secretofoz.com/ You'll love this doco Yabby.It puts banking in true perspective.

Do Big Banks makes political donations ? :)

Swan will be long on rhetoric and short on substance.

How degraded are the banks when Westpac will whine about 'cost of money' to them, yet then trumpet an 85% INCREASE in profit over last year ?

A POX on Westpac and it's CEO and her luxury mansion(s?) and on every other big bank.. hypocrites,parasites, scum and bottom feeders.