Does anyone else think the reserve bank thing is becoming a bad joke.

I did not approve Bernie Fraser, when he started pushing Labor from his reserve bank position. A no no surely. However I think his management of the bank was pretty good.

The current bunch are far too close to the bankers. A number of their statements have indicated they see at least part of their job as maintaining bank profits.

Even this now looks like it is redundant.

Having been ignored by the banks with their last rate adjustment, I think the reserve now sees its main function is to maintain it's own prestige.

I think it is quite obvious that a rate cut is essential right now. The trouble is, the reserve knows that if it does cut rated, the private banks will ignore it, & go their own merry way.

The management of the private banks could never be accused of having Oz interests at heart. Fat chance of that.

Profit is all they see, & those huge bonuses slipping if profits are not maintained, & increased.

Our reserve bank is now just a joke, with no more effect on private interest bank interest rates, than I have. I wonder how much it costs us to perpetuate this particular joke.

Reform that long ago, put this country on the road it now runs on.
Include the reserve bank being independent.
No government could or should, tell it what to do.
With the world investing in the value of our currency indeed all of them,the issue is complex.
We take the gains we must take the pain.

That sounds more like a "grumpy old man" post to me, Hasbeen. I think
that the RBA, all things considered, are doing quite a reasonable
job. They have in fact implied that they will probably cut rates
in May, after twice cutting rates late last year.

The last thing that we need is cheap interest rates. The punters
would all be out there, bidding up house prices again, when they
are already hugely overvalued.

The thing is, our economy needs to restructure and it won't happen
without a bit of pain. Retail needs to restructure, to accept
the changing reality. People need to move where the jobs are,
learn the skills required, etc.

I was recently diagnosed to have a worn out back with arthritis
setting in, so I have to give up heavy farm work. I asked around
if there was anyone around who could give me a hand to do some of
it, until I restructure things. Nobody around at 50$
an hour, anyone who can work has gone to the mines

My sympathy yabby.
And I understand.
From a different side of the fence than you My thoughts are we make it too easy not to work.
For every one trying to get on the fly in fly out pay roll some are avoiding work.
Tried very hard to get 25 year olds and school leavers a job when working,walk up start with free training, but not many took it up.
My illness stops me bull dogging it,but I just must do it myself, dole is more welcoming to some than work.
That just has to be wrong.
Not sure but think things are not as bad as some say.

*My thoughts are we make it too easy not to work.*

Belly, I quite agree with you. I know a whole lot of young fellas
who have gone out, work and thrive. Then there is another whole
bunch, especially living in some country areas, who have no intention
of working. They have cheap living costs in terms of housing or
a Govt house, then various social security payments plus a bit of
cash, they have no need to work and don't want to work. The
system provides it all for them.

Posted by Hasbeen, Tuesday, 3 April 2012 3:12:40 PM

" ... The management of the private banks could never be accused of having Oz interests at heart. Fat chance of that. .. Profit is all they see, & those huge bonuses slipping if profits are not maintained, & increased. ... "

Already I am told the likes of NAB outsource our depositing related work to places like India and once the NBN is up, I suspect that that will increase by virtue of the increased bandwidth and the time and the costs it can save. Of course, the reason they can do this is due to the nature of the legal framework which encapsulates the economy. This in turn is a construct of mainstream politicians, thus, if you want something different, you perhaps out consider placing your vote elsewhere.

..

Posted by Yabby, Wednesday, 4 April 2012 9:08:08 AM

" ... The last thing that we need is cheap interest rates. The punters
would all be out there, bidding up house prices again, when they
are already hugely overvalued. ... "

Bravo *Yabby* and well said!

" ... I was recently diagnosed to have a worn out back with arthritis
setting in ... "

Sorry to hear that mate and I won't probe as to which type of arthritis it is. Beware the risk of psychologically induced depression upon the advent of your body no longer being able to conform to your will. Easier said than done no doubt, however, best of luck in your management strategies ... You too *Belly* as it is the first I have heard you refer to personal illness.