Wayne Swan is correct is chastising the ANZ for their proposed rate increase. The banks are taking advantage of their privileged position in the way that new money is created in Australia. Their competitors are the ones who have to pay more for money. The big banks are able to create money to loan without going to the international market and do NOT pay more for money for new loans let alone more money for existing loans. Swan can give the same privilege to competitors. The big banks are raising their prices because they can, not because competitive pressures force them. The banks are abusing their position and should lose them because they are putting their own profits before the community interests. It is the community who gives them their privileges and if they abuse their rights the community should act in its own defense and widen the privilege to create new loans without backing deposits to other institutions.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s