Bad news for home buyers. How much more will they lift rates independent of the reserve bank ??

Now you can't trust what the Government tells you about the most enviable economy in the world.


Quote:

ANZ raises interest rates ANZ has lifted its variable home loan and small business interest rates by 0.06 per cent despite the Reserve Bank's decision on Tuesday to leave official rates on hold. The move takes ANZ's variable home loan rate to 7.36 per cent per annum, while the bank has now lowered its three-year fixed loan rate to 5.99 per cent. ANZ's standard variable home loan rate is now the equal highest among the big four banks with Westpac, but many analysts expect at least some other institutions to take this opportunity to claw back some extra profit margin. The rise in the standard variable rate will add about $13 a month to mortgage repayments on a $280,000 loan, according to ANZ. The bank says its move was triggered by intense competition that was pushing up the costs of deposits, and higher costs for $8 billion in funding the bank has obtained on overseas markets since October. The head of ANZ's Australian operations, Philip Chronican, says the alternative to raising rates may have been much less new lending which he says would have negative economic impacts. "While we recognise our decision may leave some people frustrated and even angry, we believe Australia needs safe, well-run commercial banks that aren't a burden on taxpayers and that can continue to lend," he said in a statement. "The alternative of weak, constrained banks that we see in the United States and in Europe is a recipe for stagnation and recession in Australia." In December ANZ announced it would break with tradition and review its variable mortgage and small business rates on the second Friday of each month.

http://www.abc.net.au/news/2012-02-10/anz-increases-rates-by-6-basis-points/3823356?WT.svl=news0

the 0.06% rate rise is so trivial as to almost be beyond meaning EXCEPT that the ANZ has effectively signalled that THEY will be deciding rates, not the government.

never happened under the Libs. now under Swan, it has happened almost ever since he became treasurer.

longweekend58 wrote on Feb 10^th, 2012 at 3:18pm:

the 0.06% rate rise is so trivial as to almost be beyond meaning EXCEPT that the ANZ has effectively signalled that THEY will be deciding rates, not the government. never happened under the Libs. now under Swan, it has happened almost ever since he became treasurer.

so what's your great financial advice now Mr Advisor :D LOL

longweekend58 wrote on Feb 10^th, 2012 at 3:18pm:

the 0.06% rate rise is so trivial as to almost be beyond meaning EXCEPT that the ANZ has effectively signalled that THEY will be deciding rates, not the government. never happened under the Libs. now under Swan, it has happened almost ever since he became treasurer.

Gee why would that be Longy????
Peter Costello's iron fist? No because he begged the banks not to raise rates & they did as pointed out various times with conciding articles in the thread abouts banks a few days ago.

Do you think it was because they were the days when bankers still believed they could on-sell bad debt forever & money was cheap because of this falsehood???
Do you think that may have explained why banks were happy to do as the reserve did?

Now of course the house of cards has fallen, money is more expensive & lenders are wary, hell even countries nay whole continents look like going under, do you think that may have something to do with it???

Besides are you saying we should socialise the banks, have you abandoned the notion of small government/personal responsibility, have you joined the commies?

Sir lastnail wrote on Feb 10^th, 2012 at 3:29pm:

longweekend58 wrote on Feb 10th, 2012 at 3:18pm: the 0.06% rate rise is so trivial as to almost be beyond meaning EXCEPT that the ANZ has effectively signalled that THEY will be deciding rates, not the government. never happened under the Libs. now under Swan, it has happened almost ever since he became treasurer. so what's your great financial advice now Mr Advisor :D LOL

vote liberal for one.

I don't understand why fixed term rates are much cheaper now.

Does anyone know why?

Dsmithy70 wrote on Feb 10^th, 2012 at 3:34pm:

longweekend58 wrote on Feb 10th, 2012 at 3:18pm: the 0.06% rate rise is so trivial as to almost be beyond meaning EXCEPT that the ANZ has effectively signalled that THEY will be deciding rates, not the government. never happened under the Libs. now under Swan, it has happened almost ever since he became treasurer. Gee why would that be Longy???? Peter Costello's iron fist? No because he begged the banks not to raise rates & they did as pointed out various times with conciding articles in the thread abouts banks a few days ago. Do you think it was because they were the days when bankers still believed they could on-sell bad debt forever & money was cheap because of this falsehood??? Do you think that may have explained why banks were happy to do as the reserve did? Now of course the house of cards has fallen, money is more expensive & lenders are wary, hell even countries nay whole continents look like going under, do you think that may have something to do with it??? Besides are you saying we should socialise the banks, have you abandoned the notion of small government/personal responsibility, have you joined the commies?

like it or not, Swan is perceived by most as an idiot and by almost everyone as ineffective. The Banks certainly (literally) laugh off his threats. his big answer is to 'change banks'. the embarrassing stupidty of that just emboldens the banks to do whatever they want. Say what you want about Costello but he was no fool and the banks knew it. The banks know that they can do whatever they want and Swan will do absolutely nothing.

There is never a real lot the treasurer can do, but Costello managed to find the key but Swan is a janitor doing a big boys job badly.

the big lie to all the banks protestations about funding costs is their profits. no matter what they say and how convincing the argument sounds the truth is simple. EVERY year the profits get higher and this is happening in a time of global uncertainly and greatly reduced local growth.

Swan is a moron and we are paying for it.

Dsmithy70 wrote on Feb 10^th, 2012 at 3:34pm:

longweekend58 wrote on Feb 10th, 2012 at 3:18pm: the 0.06% rate rise is so trivial as to almost be beyond meaning EXCEPT that the ANZ has effectively signalled that THEY will be deciding rates, not the government. never happened under the Libs. now under Swan, it has happened almost ever since he became treasurer. Gee why would that be Longy???? Peter Costello's iron fist? No because he begged the banks not to raise rates & they did as pointed out various times with conciding articles in the thread abouts banks a few days ago. Do you think it was because they were the days when bankers still believed they could on-sell bad debt forever & money was cheap because of this falsehood??? Do you think that may have explained why banks were happy to do as the reserve did? Now of course the house of cards has fallen, money is more expensive & lenders are wary, hell even countries nay whole continents look like going under, do you think that may have something to do with it??? Besides are you saying we should socialise the banks, have you abandoned the notion of small government/personal responsibility, have you joined the commies?

IM saying that there shoudl be some effective government involvement in this issue and if there is one very marked failure of this government it is this. they have ZERO control over the banks and even less respect from them.

Paki gob on a stick wrote on Feb 10^th, 2012 at 3:46pm:

I don't understand why fixed term rates are much cheaper now. Does anyone know why?

Why don't people just switch to fixed term rates?

It's not like the Reserve Bank are threatening to massively lower rates any time soon.

Quote:

The banks know that they can do whatever they want and Swan will do absolutely nothing.

What did Costello do when they defied him???
NOTHING, so they are the same.


Quote:

There is never a real lot the treasurer can do,

At last a bit of honesty


Quote:

but Costello managed to find the key

Key to what they did what they wanted, just as they are now.


Quote:

EVERY year the profits get higher and this is happening in a time of global uncertainly and greatly reduced local growth.

So I can mark you down in favour of a super profits tax?
Welcome to the light ;D
Or are we back down the FAILED path of regulation?


Quote:

Swan is a moron and we are paying for it.

Personal opinion is hardly an argument, in fact the VERY SAME advice that Costello offered(change Banks) has been made easier at least for new mortgagee's by SWAN with the removal of penalties.
Costello mouthed platitudes it would seem Swan cant so he does instead of talk.

Dsmithy70 wrote on Feb 10^th, 2012 at 3:56pm:

Quote: The banks know that they can do whatever they want and Swan will do absolutely nothing. What did Costello do when they defied him??? NOTHING, so they are the same. [quote]There is never a real lot the treasurer can do,

At last a bit of honesty


Quote:

but Costello managed to find the key

Key to what they did what they wanted, just as they are now.


Quote:

EVERY year the profits get higher and this is happening in a time of global uncertainly and greatly reduced local growth.

So I can mark you down in favour of a super profits tax?
Welcome to the light ;D
Or are we back down the FAILED path of regulation?


Quote:

Swan is a moron and we are paying for it.

Personal opinion is hardly an argument, in fact the VERY SAME advice that Costello offered(change Banks) has been made easier at least for new mortgagee's by SWAN with the removal of penalties.
Costello mouthed platitudes it would seem Swan cant so he does instead of talk.[/quote]

well that's just it... they pretty much DIDNT defy him. they followed RBA movements. Under swan they almost never have right from the start.

Dsmithy70 wrote on Feb 10^th, 2012 at 3:56pm:

Quote: The banks know that they can do whatever they want and Swan will do absolutely nothing. What did Costello do when they defied him??? NOTHING, so they are the same. [quote]There is never a real lot the treasurer can do,

At last a bit of honesty


Quote:

but Costello managed to find the key

Key to what they did what they wanted, just as they are now.


Quote:

EVERY year the profits get higher and this is happening in a time of global uncertainly and greatly reduced local growth.

So I can mark you down in favour of a super profits tax?
Welcome to the light ;D
Or are we back down the FAILED path of regulation?


Quote:

Swan is a moron and we are paying for it.

Personal opinion is hardly an argument, in fact the VERY SAME advice that Costello offered(change Banks) has been made easier at least for new mortgagee's by SWAN with the removal of penalties.
Costello mouthed platitudes it would seem Swan cant so he does instead of talk.[/quote]

a super tax on the banks would be appropriate since they are gouging customers. The miners (which is your obvious comparison) arent gouging anyone. They are just making a lot of money while emplying many and contributing more in taxes then taxpayers themselves. A PUNITIVE tax regime on the banks might bring them back into line and was in fact something Costello once threatened at a meeting with 3 of the 4 banks. That threat was taken seriously. Swan's wasnt primarily because he is seen as stupid man in a powerless government that wont be around for much longer.

Banks going rogue. Hello, USA.

Karnal, your question, why don;t people fix their rates? Last time we went through this circus my son did fix his rates when they were on the climb. Then suddenly the International Financial Crisis hit and the rates dived. My son got caught for several years paying way overt what the going rate is now.

The answer is that the poor bloody worker can never win.

today Westpac raised its rates.1 of per cent. This will no doubt cover Gail Kelly's next multi million dollar pay rise along with all those those other fat cats hanging off her threads at Westpac.

Then we had the STOOPID ACT OF THE CENTURY - THE ARCH CLOWN WAYNE SWANN on TV bleating on about changing banks.

If that guy doesn't qualify for the the Economic doe whacker of the Century, I will hang up my bat. Although it would be close between him and Paul Keating I admit.

longweekend58 wrote on Feb 10^th, 2012 at 3:18pm:

the 0.06% rate rise is so trivial as to almost be beyond meaning EXCEPT that the ANZ has effectively signalled that THEY will be deciding rates, not the government. never happened under the Libs. now under Swan, it has happened almost ever since he became treasurer.

I have not a DOUBT you don't believe this "tosh" about the banks not putting up rates because Costello TOLD them not to

In a case of "opportunism" your "argument" is a flimsy attempt to talk up Costello and the Howard Government - and talk down Swan and Labor




This trend of banks not following every trend of the RBA ( ... to the decimal point) began under COSTELLO - in the last rise before the 2007 Federal Election

Banks do what is best for themselves and their shareholders. No private Aussie bank has ever done what is best for the govt of the day.

buzzanddidj wrote on Feb 10^th, 2012 at 7:18pm:

longweekend58 wrote on Feb 10th, 2012 at 3:18pm: the 0.06% rate rise is so trivial as to almost be beyond meaning EXCEPT that the ANZ has effectively signalled that THEY will be deciding rates, not the government. never happened under the Libs. now under Swan, it has happened almost ever since he became treasurer. I have not a DOUBT you don't believe this "tosh" about the banks not putting up rates because Costello TOLD them not to In a case of "opportunism" your "argument" is a flimsy attempt to talk up Costello and the Howard Government - and talk down Swan and Labor This trend of banks not following every trend of the RBA ( ... to the decimal point) began under COSTELLO - in the last rise before the 2007 Federal Election

12 years of success and one politically motivate failure (the banks knew it was political dynamite) and you think it was s constello trend? The banks didnt fear costello by october 2007 because they knoew (as did everyone else) that he had a mere 4 weeks left in the job. They knew that his replacement was going to be the George Bush of australian politics - that dumb moron Swan who they knew they could run roughshod over - and did.

The trend started under Swan. you just confuse the starting dates.

longweekend58 wrote on Feb 10^th, 2012 at 7:27pm:

buzzanddidj wrote on Feb 10th, 2012 at 7:18pm: longweekend58 wrote on Feb 10th, 2012 at 3:18pm: the 0.06% rate rise is so trivial as to almost be beyond meaning EXCEPT that the ANZ has effectively signalled that THEY will be deciding rates, not the government. never happened under the Libs. now under Swan, it has happened almost ever since he became treasurer. I have not a DOUBT you don't believe this "tosh" about the banks not putting up rates because Costello TOLD them not to In a case of "opportunism" your "argument" is a flimsy attempt to talk up Costello and the Howard Government - and talk down Swan and Labor This trend of banks not following every trend of the RBA ( ... to the decimal point) began under COSTELLO - in the last rise before the 2007 Federal Election The banks didnt fear costello by october 2007

The banks NEVER "feared" Costello - or any treasurer BEFORE him

These are PURELY market based decisions
They KNOW the market can stand an increase - mortgage rates being at "record lows"

I'm so glad I still haven't taken a 'Home Loan' to 'work for the Banks'.

Sure I rent and it could be seen as 'dead money' - but I pay less in rent to what I would to a bank's interest = savings! Plus I can move around without forking out buy/sell fees, etc.

The money I save gives me a better 'quality' of living.
Sure I've lived in some seedy joints where women throw beer bottles at your door wanting child number 10. "You could be dead tomorrow!" (she shouts ::)) and cops turn up almost nightly.
But maybe I will buy a house from some greedy person who bought x5 in the hope of ripping someone off with some over-rated inflated 'boom' pricing ...for just $100,000 ? ;) because they were forced to sell cheaply to cover costs.

Hi Nail,
This thread just goes to show how Longweekend
was wrong about buying houses & property.

When will he apologise to the readers on Ozpolitics for providing
unsound financial advice to them?

seems to me.... since deregulation of the banking sector, the major banks have done pretty much as they choose,  .. with no thought for anything but their profits and their shareholders.

Whomever the treasurer may be.!! :o

Why are we surprised.?
  This is our world..... business, profit, is paramount  ..and Banks are a business.
Govt always seems to subsidise business.  WHY?

I'd much prefer that all non-community based business had to actually make it on their own.  WtF should I subsidise them?

NOT off topic.

well I am sure the self funded are happy at any rate..I feel for small business myself.. they are doin g it tough already with the markets going against them its a pity our treasurer cant do anything for them

Bobby. wrote on Feb 10^th, 2012 at 9:53pm:

Hi Nail, This thread just goes to show how Longweekend was wrong about buying houses & property. When will he apologise to the readers on Ozpolitics for providing unsound financial advice to them?

Where is the apology?

Bobby. wrote on Feb 10^th, 2012 at 9:53pm:

Hi Nail, This thread just goes to show how Longweekend was wrong about buying houses & property. When will he apologise to the readers on Ozpolitics for providing unsound financial advice to them?

He won't because he will just keep blaming someone  else as to why his advice was a complete failure ;)

cods wrote on Feb 11^th, 2012 at 5:35am:

well I am sure the self funded are happy at any rate..I feel for small business myself.. they are doin g it tough already with the markets going against them its a pity our treasurer cant do anything for them

large business are doing alright with all the bailouts. Too big to fail I suppose. But small business are dispensable because they don't register on the political radar :(

Sir lastnail wrote on Feb 11^th, 2012 at 10:36am:

cods wrote on Feb 11th, 2012 at 5:35am: well I am sure the self funded are happy at any rate..I feel for small business myself.. they are doin g it tough already with the markets going against them its a pity our treasurer cant do anything for them large business are doing alright with all the bailouts. Too big to fail I suppose. But small business are dispensable because they don't register on the political radar :(

Small business died under howard.

http://www.youtube.com/watch?v=roIeVEf5alk

buzzanddiddj, I don't have to talk down WAYNE SWAN because every time that bloke opens his mouth he reveals himself as the 'VILLAGE IDIOT'.

Just goes to show you how a doewhacker, if he really huffs and puffs, can get to the top, mediocrity rules O.K. huh?

AS for the ANZ BANK, seriously, how can they still be in business? They were and still are the absolute worst bank in the country. Unbelievably bad! In their business model and every other model they have put up...still there's one born every minute because they keep on making multi billion dollar profits.

Must be a lot of Clive Stoopids out there!