Yabby>> Then they wonder why life sometimes sucks.
Then they want to blame people like me, who worked and saved a bit, for their perils.<<

God Yabby, I see that you have once again designated yourself as the benchmark for not only intelligent decision making but for moral and cultural behaviour as well.

Yabby says:
Why don’t the plebs borrow at this rate.
Why don’t they second mortgage.
Why don’t they negative gear.
What about the capital gains tax.
Get an accountant and a family trust.
Open an off shore bank account.

As you exampled, without reference, there are better options available in the usury market tell me where you found a savings account that returned 8% Yabby….you didn’t. You give some bullsheiser example of a term deposit or some other bonded savings investment that was available for five minutes.

Right now you put $199,999 in a term deposit in the CBA and they will give you 4.5%. Right now if I borrow $199,999 they will charge me 13.9% fixed and 14.4% variable. As I mentioned earlier their everyday access accounts are paying 0.01%.

Geeze I’m lucky to have a bright person like yourself to tell me how good the banks are to me. Someone like you that educates me on the benevolence of the banks and that what I am seeing is wrong thinking. Who's bank, my bank, the one that registered a record profit in one breath and sacked 1500 little Australians with the second.

Just to know that my AMP has a real investment of 0.73% in CBA shares gives me a great feeling of prosperity and security.

Just to know that;

HSBC Holdings London
J P Morgan
National Nominees Limited
Citicorp Nominees

hold 36% of the shares in the CBA this must give you a great feeling of prosperity and security.

Yabby would you consider doing a regular “money talk” thread on OLO so those not as astute as yourself might know how to take advantage of the wonderful things our banks can do for us, I know I for one would appreciate it.

Sheesh Sonofgloin, you are a worry sometimes, you really are. But quite human of course as in this case. Its a human foible to stuff things up, as it seems in your financial affairs, and then to blame others for the mess.

For the record, I did not mention second mortgages, there are flexible first mortgages. I did not mention negative gearing, or capital gains tax of family trusts of offshore banking.

If you are foolishly paying 14%, when you need only pay 6.5%, well I can't help that either.

I gather that the AMP gives people choices about what kind of super that they want. Some want exposure to more Australian shares like banking shares, some less. If you want more, change your policy.

It certainly sounds to me like you need to find somebody to give you some good financial advice. Surely there are people like that available in a place like Sydney?

The 8% was available for a time, other rates later at 7.5% or 7%.
I live in the sticks and I knew about it from Business Spectator,
which is on the net. If a bushy like me can inform themselves, surely you can too. Otherwise, as I suggested, get some help.
Sydney is after all Australia's financial capital.

it comes to mind that..any advantage banbking might have had/employing tellers..is gone..now you only need a cash machine..some crossholding shares..and a serevice to replace the notes..'spent'..

much like when govt got smaller..by selling off the family silver in the states..yet still managed to 'grow'...banking soon will take a computer..

then much like front running..the few who really run things..will be easy revealed..and jailed..and their assets..[PROCEEDS OF CRIME*..seized..

the fools are now talking about inflation..[ie deflating the real bying worth..of your savings..ie stealing from the poor on fixed wages etc..

while those in the know..will pick egsactly the right time to lock in
or value it in high inflating monies..so the debt..[in money ammounts gets smaller..but in loss of true value/the skills that create[the real economy..

just had to share this
from three things

http://finance.fortune.cnn.com/2012/08/16/bank-break-ups-dividends/

But there is a darker horse in this race -- feckless U.S. policy which continues to prolong the Death of the Dollar. Those in Congress pushing to audit the Fed may have a point. But we think the Fed should push for an audit of Congress.

Bernanke has been given a limited toolkit and instructed to fix what all of Congress and the White House combined can not even begin to address.

Armed with only a hammer[and sychle]compass and straightedge, Bernanke has to figure out how to cut, drill, screw, bevel, plane, level, miter and join an economy that is maliciously neglected by those most responsible for its welfare.

public servants doing treadon to state

Congress's job is to enact responsible fiscal policies, then to empower the Fed to draw the reins now to this side,..now that,..to keep the horses in the middle of the path.

Instead, Washington has abdicated its responsibility,..in the face of which no amount of Fed soldiering can strengthen the dollar.

Corporate America is not dumb.

In an environment where the Risk Free investment can allow itself to sell at a negative return, even after allowing its rating to be cut from AAA to AA, why should AAA companies knock themselves out to beat the yield on Treasurys?

Should corporate America dole out its cash when neither the government nor the banks will?

Look at IBM yielding almost 3.5% and ask yourself: "Why?"

If you oversee managed equity funds, or retail brokerage accounts, you should be sensitive to outlier events. All it takes is one major listed company to announce they believe it prudent to husband their resources, given the uncertainty of the environment.

The stock will take a temporary hit, but they'll tough it out. And all of a sudden, all those "prudent" blue chip portfolios will turn into customer lawsuits.

These kind of tumultuous changes..are like getting pickles.out of a jar...That first one is so hard to get...

But..once it comes out,

the rest just keep spilling and spilling and spilling…
http://finance.fortune.cnn.com/2012/08/08/iran-standard-chartered/

Yabby I purchased my first little hobble for cash in 1978. In 1987 I purchased a better hovel, borrowed $120k and threw in$40k. The interest rate was 11.5% but quickly ran up to 17.5% and stayed up around there for the next decade from memory. I ate a load of spaghetti bol during those years. In 2001I purchased some property over the mountain, 120 hectares for the price of a new ute and family sedan.

I have always had a corporate credit card, I have one now and I use that to pay immediate bills. I have a personal visa and diners and that is it. I pay big things by cheque or direct debit from a transaction account. Right now I am debt free.

You see Yabby I am not an aging anti establishment Trotskyite. I have a sound understanding of the usury system. Since deregulation in the 1980’s the banks relationship with its depositors moved from valued client who was paid to deposit funds for the banks use. To a depositor using the banks facilities to store and draw their money.

Stick to your story Yabby, banks are our friends.

Ah Sonofgloin, so you are actually a rich real estate owner and are not paying 14% interest as you claimed!

I too borrowed from the banks in the 70s, cap in hand. The development bank knocked me back, thought I would never make it.
Luckily the Commercial Bank now Westpace, gave me some help, so did some family members. For young people to borrow, to say start a business, was virtually impossible in those days.

Luckily Keating deregulated the banking system, but high interest rates which I too paid, were not due to the banks, but due to the RBA, who were determined to bring down inflation which was out of control.
Mr Keating told us, the recession that we had to have.

Interestingly bank spreads were up to 4% before the deregulation of
the market. Competition in the market drove them down to just over 2%, where they are now.

Yes, the banks have done well. Australians went on a borrowing binge, encouraged by US lenders like GE (Harvey Norman - free lending etc)
But they have done well because of such huge growth in the market,
not because of rising margins.

What amazes me is how poorly informed people are. You complain about banks earning too much, when their return on equity is nothing special, despite the risks, given our high house prices. But a company like carsales.com can return 56% on equity and you don't say a word! Then you pay super funds a fortune to manage your super, something like 9 billion $ a year, without taking any risks at all!