Wednesday, 4 January 2012

Uncle Joe puckers up and blows the first dog whistle of the season

On the 3rd January 2012 @JoeHockey tweeted that I warned of this a year ago!!!”
I clicked on the link wondering what financial horror the federal shadow treasurer had uncovered.
The article merely confirmed the bleeding obvious; “Among banks trading in Australia, the major lenders account for 86.7 per cent of the home loan market.
Well, knock me down with a roo’s tail feather!
Now mortgage holders can switch between banks with no financial penalty for doing so, they are still sticking with the big banks.
I wonder why?
Could it possibly be that these aspirational borrowers believe that solid reputations built up over decades or centuries by the banks really matter in periods of global financial uncertainty?
Or did many of them approve of the big banks following the November 2011 example of the Reserve Bank rate cut? After all there was a surge in mortgage lending to first home buyers and investors right after that – mostly within the banking sector.
Were they cheered by the fact that in December all four of the big banks had passed on another rate cut to their borrowers?
Now Uncle Joe likes to blow his dog whistle loudly over Twitter, this time crying out that Teh Big Four are still big!
A few street mutts might even scamper his way. This old mongrel won't be one of them.
I may hail from a long gone time where you actually knew your bank manager and it was the price of our schooners which concerned us all, but for the life of me I can’t see that consumers exercising choice is a problem for the country. Specially those consumers taking out a new mortgage.
Why should they go and pay higher borrowing rates in the non-banking sector just to please Hockey’s notion of how the world should turn?

Running dogs from
Dog cartoon from

1 comment:

Anonymous said...

When one is trying to manipulate the masses into adopting a poltico-philosophical position that is against their own economic interests ... one has to use every trick in the book.