Restrictions on banks and suspension of all debt payments??

EightImmortals on 23/03/2020 - 09:06

So you haven't heard anything about that either?

As another poster noted "No matter what occurs we have to keep usury and the debt bonanza rolling on.Imagine what would happen if those that relied on a percentage of societies wealth without making, creating or doing anything stopped receiving money."

ALL debt payments must be put on moratorium NOW and remain in place until this crisis is over (if it ever will be). Imagine the young couple who have been struggling for years to get a home deposit only to have to piss it away on cost of living because centrelink wont give money to people who have savings? Now in normal times that's kinda fair enough, but these aint normal times and it's people's wealth and not the bloody banking criminals that need protecting the most.

So where is the banking reform measures bill?

I'll be doing a mail around of the pollies in the next day or so calling for banking reforms and taxation relief.

/rant

Financial

Comments

  • [Deactivated] on 23/03/2020 - 09:24
    +3

    Go the young couple saving for a house on centrelink payments! Shouldnt take them long at all.

  • thirtysixd on 23/03/2020 - 09:46

    If anything I bet banking restrictions are loosened

    • JimmyF on 23/03/2020 - 10:08
      +13

      Given the profits they make I'm sure they are robust enough to ride this out

      So shareholders have to suffer from those who hadn't planned ahead more than the next pay check?

      • zonra on 23/03/2020 - 12:45

        Haven’t you heard?
        ‘#bailmeout’ is trending these days.

    • HighAndDry on 23/03/2020 - 10:25
      +3

      Ah yes, all those pensioners and retirees depending on fixed interest payments from their savings and investments.

      I'm sure they're robust enough to ride this out, because they're engaging in usury too.

  • Almost Banned on 23/03/2020 - 09:54
    +8

    Imagine the millions of Australians - not to mention the thousands of self-funded retirees - with super invested in banking shares or in term deposits.
    Everything is interconnected - and while you think you are trying to help one group of people you are hurting others.

  • [Deactivated] on 23/03/2020 - 10:07
    +3

    What happens, in your plan, to depositors? They have already been the whipping boy for years now.

  • HighAndDry on 23/03/2020 - 10:20
    +1

    As another poster noted "[nonsensical socialist babble]"

    There, fixed that for you.

    I lent my friend Bob a grand a few months ago because he was waiting for a customer to pay him and needed the cash to keep his business going. He agreed to repay me a grand plus a hundred this month.

    If he doesn't pay, with the interest, good luck convincing anyone else to lend him money in the future when he needs it, and next time he does, his business is going to go under.

    Your plan sounds great.

    • shouldercat on 23/03/2020 - 12:32
      -1

      So where do the banks get their cash from? RBA? So if RBA doesn't demand banks to pay it back - then why should banks demand people that have lost their jobs to pay them back? Where is the line between greed and live and let live?

      • HighAndDry on 23/03/2020 - 16:11

        What?

        First of all,

        live and let live?

        This means you're not borrowing money from others in the first place, or that you pay your debts as they are due. It certainly doesn't mean you can abrogate your responsibilities and obligations.

        So where do the banks get their cash from? RBA?

        Depositors.

        And no, if I had my money in the bank, or a term deposit, and the bank didn't let me withdraw that money when I'm entitled to, I'd also be absolutely livid.

        It's ok to be ignorant. That's why questions are a thing. But it's less ok to be this ignorant and still think you can have a valid opinion.

        • shouldercat on 23/03/2020 - 20:51
          -1

          lol ok bud. Please educate us more about how banks are funded solely on depositors.

          • HighAndDry on 23/03/2020 - 21:52

            @shouldercat: I'm so confused. You legitimately think the RBA is in the business of lending to private banks so they can in turn lend out money?

            What do you think banks do with the money people keep in accounts with them then?

            Edit: Since you did ask so nicely to be educated, have a read of this regarding banks' capital reserve requirements:

            https://www.rba.gov.au/publications/bulletin/2010/sep/6.html

            Now. Find me anywhere in the banks funding labelled "RBA".

            Hint: You won't.

            Edit 2: It occurs to me that you might think the RBA lends to banks because it sets the cash rate, which influences bank interest rates. That's not how that works either; have a read of this though, for why the cash rate affects interest rates:

            https://www.rba.gov.au/publications/rdp/1995/pdf/rdp9504.pdf

            • shouldercat on 24/03/2020 - 07:58

              @HighAndDry: Please continue I'm learning a lot, so if all depositors pull money out of banks how do they survive?

              • HighAndDry on 24/03/2020 - 10:15

                @shouldercat: They don't. That's what's called a run on the banks, which is the banking analogy to panic buying. Or coronavirus patients flooding hospitals. Or everyone on unemployment trying to access the Centrelink site at the same time causing a DDoS.

                No system that's sustainable and efficient is created to survive a one-in-a-million type event.

                More to the point, a banking system that can withstand everyone withdrawing all their savings at once might as well not exist, because that's the same as everyone keeping their savings under the bed. Including paying for everything with cash (including property).

  • Baysew on 23/03/2020 - 10:25
    +3

    ALL debt payments must be put on moratorium NOW and remain in place until this crisis is over (if it ever will be).

    Why?

    • EightImmortals on 23/03/2020 - 10:38
      -3

      Because it's the right thing to do.
      Why should one sector of big business be exempt from this crisis while most everyone else isn't?

      As for those concerned that your savings TD's and shareholdings might a take a hit for a while I suggest you look into the 2018 bail-in legislation and shaky ground that the government's deposit guarantee sits on. If you think your assets are safe in the bank, better think again.

      • HighAndDry on 23/03/2020 - 10:45
        +6

        Why should one sector of big business be exempt from this crisis while most everyone else isn't?

        Lol. When one town gets burned down in the bushfires, do you also go around burning down the other towns too because "why should they be exempt"?

        Socialists - everyone should all be equal….. ly miserable.

      • Baysew on 23/03/2020 - 11:06
        +3

        Because it's the right thing to do.

        That seems more like a whim, rather than a fully considered response.

        As for those concerned that your savings TD's and shareholdings might a take a hit for a while I suggest you look into the 2018 bail-in legislation and shaky ground that the government's deposit guarantee sits on. If you think your assets are safe in the bank, better think again.

        So wouldn't it be more prudent not to undermine the whole banking sector?

      • RockyRaccoon on 25/03/2020 - 11:07

        Because it's the right thing to do.

        Sounds like a Real Insurance Ad

  • Diji1 on 23/03/2020 - 10:59
    -3

    Yeah that's not going to happen because Laberal is controlled by the banking sector.

    The big four already have an unconditional guarantee that they will never go out of business. The free market talk is just dribble for (profanity) idiots who believe in deregulation.

    The control is achieved by the system of legalised bribery that Laberal operate where the pigs get fat because the banks pay them to control the country.

    Unless you stop voting Laberal.

    • Baysew on 23/03/2020 - 11:08
      +3

      Don't tell me, the Greens will nationalise the banks as well as the electricity companies.

      • RockyRaccoon on 23/03/2020 - 11:35
        +2

        Dont be rational with irrationality

  • caramellokoala on 23/03/2020 - 11:08
    +8

    Privatise the profits and socialise losses.Right?

  • tsunamisurfer on 23/03/2020 - 12:02
    +9

    OP.

    People who sign up for a mortgage should have factored that within a period of 30 years, there's going to be events like unemployment and ill health.

    This is the time for them to fall back on those mitigants they have put in place for this risk, not DEMAND the banks give them a break.

    At least one bank has kindly offered a 6 month repayment holiday which is great, if anyone is in trouble, simply be communicative with their banks.

    I absolutely hate people that are entitled, the OP just climbed up that list.

  • [Deactivated] on 23/03/2020 - 13:07
    +1

    Imagine the young couple who have been struggling for years to get a home deposit only to have to piss it away on cost of living because centrelink wont give money to people who have savings

    Is that young couple you? Consider yourself lucky that you have some savings.

  • Drakesy on 23/03/2020 - 13:16
    +2

    I feel the economy has created an environment where many were shrouded in this false sense of security.
    Banks kept lending, people kept buying, government reduces interest rates, repeat.
    Everything was perfect.

    It was unsustainable for stocks to keep rising the way they were
    It is unsustainable for houses to keep rising the way they are, leveraging against future gains or just to get into the market is exactly what Domain and Realestate.com want you to think.

    Australia's economy was only growing due to immigration, which in turn increased population driving up property prices.

    Eventually everything resets and COV-19 was the catalyst.

    It's just unfortunate that the people who blindly over leveraged because of the environment of complacency are the collateral damage in all of this.

  • horice on 23/03/2020 - 13:24

    Damn where are those

    Equity MAAAATE ads these days?

  • suti on 23/03/2020 - 18:54
    +1

    So that other couple who stopped bidding 250k ago now has to pay for your risk taking?

    How many investment properties do you have?

  • SlavOz on 24/03/2020 - 00:01
    +1

    Wow, after surfing Reddit for a few days and reading all the socialist hysteria around Covid, this thread has restored my faith in humanity.

    Reddit is literally one massive echo chamber of people like OP throwing one stupid idea on top of another and bashing anyone who disagrees to death with their stupidity.

    OP, no, I will not pay your mortgage for you. Nice try.

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