Points to Ponder

• Are the banks short of funds?  ASIC have just released the fact that the banks now have $500billion in low interest and no interest bearing deposit accounts!  What would it do for competition if the government could offer a AAA guarantee on these funds if they were transferred to the non-banking sector to free-up the flow of funds into the non-banking community for valued projects?
• Interest rates have come down, according to the Reserve Bank, but did you know the banks raised rates by .5% before the rate drop and therefore, even if they matched the RBA, they still would be overcharging .5%
• Overdrafts to business (which feeds on into higher prices and inflation) have actually risen .5%.  Banks are taking advantage of their monopoly on this position with no action from the RBA
• Kleenmaid have disclosed laying off nearly 200 workers.  A direct result of the slow down in the housing construction industry.
• When the Government realises there is a housing crisis and forces the banks to renew funding to this sector – where will the resources be to meet this demand?  Kleenmaid have gone broke – who next?  Many builders have gone broke – who next?

Regards

Kevin