In the wake of the botched Hayne Royal Commission on Banking, yesterday the RBA finally decided to cut interest rates to a historical low of 1.25%: a drop of 25 basis points.
The RBA governor, Philip Lowe, using the insipid bureaucratese spoken at the RBA, explained that was meant to “help make further inroads into the spare capacity in the economy”, which in English means something like they are trying to start the faltering economy run by those clowns who just got re-elected on their claims of being great economic managers.
The idea is to make loan repayments to banks more affordable to consumers and investors, to try and avoid a recession.
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The problem is that out of the four too big to fail banks, two decided not to pass the cuts in full. Westpac shall pass on 20 basis points, while ANZ shall pass only 18. They will pocket the difference.
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“It is the Government’s expectation, indeed it is the public’s expectation, that banks should pass on, in full, to consumers, the benefits of reduced funding costs as a result of the Reserve Bank’s decision.”My expectation, Josh, is that they’ll do what they please and you won’t do shit, beyond looking like a pathetic fool. Just like you did in this photo a few months ago. Remember?
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So, wealthy retirees, how’s that going to affect your holy savings? And you, young people aspiring to get your first home, will a revitalised housing bubble help you?
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And while we waste our time with the absurdity of capitalism and the pettiness it induces on the mediocre, we lose sight of what is vitally important:
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They’ll may go first, but we’ll follow them soon enough. There will be poetic justice in that.
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