The Three Monkeys

We have the three monkeys, hear no evil, see no evil, do no evil.  In my opinion, that is our Members of Parliament, APRA and the RBA.

The APRA madness attack on property investors has allowed the banks, with the approval of the RBA, to exercise greed.  APRA is supposed to be concerned that interest only loans "because of fears borrowers have no strategy for repaying the principal and cold face financial stress as rates rise", have no exit strategy when clearly it's bought to hold long term and pass on in the family estate.

Well to you and me, logic would dictate that someone would have to explain that they're buying a rising asset and would look forward too, at worst case, to sell that asset as the "repaying" strategy.

What is not logical is to turn around and hit these people now with an even higher interest rate.  How does that help their exit strategy? It only helps the banks bottom line.  CBA will lead this greed charge from March 17th by repricing interest only home loans.  Because banking is a monopoly in Australia now, this is a sign to everyone else to do the same.  Yet more money transferring out of the pockets of consumers to the banking monopoly.

Our MPs of course are the hear no evil.  They don't want to hear about this monopoly.  They don't want to take on the big end of town.  They don't want to know that our banks take more than double the share of Australia's Gross Domestic Income than for example, the UK or US banks do.  Combined they take less than 1%.  Our Australian banks are well over 2%.  But don't tell our members of parliament!

Kevin Young

Club Founder