Yabby:>> What the banking enquiry revealed was just how narrow a net margin that most banks work on, generally less then 1% of their total
assets. So if they paid 1% more for their money or charged 1%
less, they would make nothing at all. Hardly a rip off.<<

Yabby my china plate, we have been down the road of bank profits before you and I, and I aint going back there with you again, but thanks for the spin.

Fair enough, Sonogloin.

When it comes to banking, we have much hollering on OLO, but little
informed comment. Unlike most, I've made it my business to
understand the industry and the figures, to some extent.

Given the 2 trillion $ borrowed from the big 4, its clear that
Australians impulsive obessesion to spend and borrow is the problem,
not bank margins.

But yes, its a human foible to blame everyone but ourselves, when
things go wrong and we struggle to repay debts. Its much more
difficult to be objective about the reality, so if you can't
help yourself here, its understandable :)

Yabby I recall the local Commonwealth bank manager who knew me from boy to man. I went to him for my first car loan, he said gets some savings record going and I will lend you the rest, I did and he did. The same for the boat loan a little further down the track. I went to Tony for my first housing loan, he said come up with a quarter and I will fund the rest, I did, he did.

In the same fashion that we need police we need lending bodies who do not let us cut off our nose to spite our face. The "new usury" simply looks at the ability of the asset to be redeemed not the ability of the borrower to service the debt ongoing. Couple that with the consumerism that has crept in generationally and unless you are a smart cookie you could be in debt and without the asset very quickly.

The powers regulate smoking, drinking, gambling, drug taking, and what is politically correct and what is not, but we can commit suicide financially and the powers do not care because the “money” never comes up short.

You raise an interesting point there Sonofgloin, namely how much
do we babysit the consumer ?

The punters lose many billions a year at the pokies, we say nothing.
Apart from WA of course, where they are not allowed in clubs.

Harvey Norman offers 4 year interest free deals, bankrolled by the
Americans, ie GE Finance. People rush in, they want it all today.

One would think that the huge interest rates on credit cards would
make people think twice before running up debts, but not so. They
want it now and will pay a fortune to have it now. The notion
of waiting until we can afford something, seems to be bypassing
whole generations.

I note that Sydney house prices are still going up, despite being
over the top and despite the big 4 clamping down on security and
deposits, since the GFC and so many mortage lenders and overseas
banks closing down.

If only fools see themselves:).....I could say more...but they would not.

BLUE

The interest free programs to which you refer Yabby, are of course a fraud, because the interest component is contained
in the fixed price of the item your purchasing.

Funded by Americans my *rse, "it costs them nothing", " because in reality there no such thing as an interest free loan ". In fact they're making money. The purchaser is funding the cost of the loan in advance. It costs GE, Citibank, etc zero to offer such mythical finance products.

Every time I bring up the issue of our Trade Practices Act, I am largely ignored by all posters on this forum. Why is this?.

Claiming that a loan is interest free, when in fact the interest has been collected in advance.
I would have thought at the very least, that this would considered an undesirable trade practice.

Petrol prices yoyo-ing, banks signalling interest rates to each other, supermarkets colluding with fuel distributors by internet links, fixing and/or manipulating prices. Energy Companies and communications/phone companies the same and so on.

What do you think they do?, change prices in unison by running down the road
and looking at each other's price signs?.

" If only we knew how expensive our phone and internet services were, and how inadequate they were, compared to other countries ", " we would never again, allow them to be owned by private/business interests ", and once again would understand the value of taxpayer owned essential services or utilities. Such as the NBN should be, for example.

So you want a Rupert Murdoch or some other similar beast owning your water supply do you?.
I would want to be sure that I was in control of my future, if I was thinking about it.