6th Aug 2018
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Treasurer believes “consumer power” will drive banking reform
Treasurer believes “consumer power” will drive banking reform
Image © Rupert Kaldor

Rounds one to four of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry are over, with the Government delivering a response to the commission's investigation of the banking sector.

Federal Treasurer Scott Morrison on Friday outlined the Government’s planned response to the commission’s findings, citing a focus on banking competition and the need for “more players” as the answer to all the sector’s problems.

That, and, blaming the customer for being “complicit in allowing the deck to be stacked against us”.

In his speech to the Australian British Chamber of Commerce on Friday, the Treasurer said that Australia’s banking and insurance markets are dominated by a “handful of players” giving them an “entrenched, dominant market position”.

He acknowledged that a Productivity Commission report found evidence that banks have “sustained prices above competitive levels [and] offered inferior quality products to some groups of customers” but he refused to admit that competition in the sector had weakened.

Yet he said that increasing the number of “players in the market” will create “a level playing field, so competition can thrive”. These are the strategies the Government will put in place to create industry reform.

Then, it seems, the rest is up to you.

“For all the success of these reforms so far, the one that matters most in the minds of customers is will I get a better deal?” said Mr Morrison.

“Too often we, the customers, have also become complicit in allowing the deck to be stacked against us. You can guarantee it, the more passive a customer is, the worse deal they are going to get.

“I believe that real market power needs to be put back in the hands of the customer.

“Power to change their circumstances. Power to get a better deal on their mortgage, on their credit card, on their business loan. Power to change the system. Power to control their own data and reap the value of its use, rather than those who have been using it for decades … for their own advantage and not yours.

“And we the customers have a role to play in this. Customers must stop being passengers and bystanders in their own cause.

“There is no one more committed to looking after your interest than you. You can't take yourself out of the game and listen to those who want to infantilise you by promising a cotton wool regulatory system, with nanny-like regulators, that rather than awakening and empowering your consumer power, will rock you off to sleep.”

As far as Mr Morrison is concerned, the Government will have done its job once it has introduced more players to the market. A strategy with which, the Australian Banking Association (ABA) agrees.

“The ABA believes strongly that competition will improve further with the introduction of Open Banking, Comprehensive Credit Reporting and regulatory reforms to further reduce barriers to new entrants.”

The royal commission may have taken a few scalps along the way, but condemnation of poor banking practices and any further announcement of stricter regulation of the sector seemed to be missing from the Treasurer’s speech.

The focus seemed to be on the Government delivering more of the same ‘players’ to an already unruly playing field. But does more choice simply mean more responsibility on you to sort the wheat from the chaff?

“While the Government can create an environment that gives you better tools to make an informed decision, it is only you as a customer who can actually make that decision. And it is you who lives with the outcomes,” he said.

Read the full transcript of the Treasurer’s speech

Are you happy with the progress of the royal commission? Do you think the Government’s response is appropriate? Apart from stricter lending protocols, are you aware of any other regulations that restore your faith in the sector?

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    COMMENTS

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    Ted Wards
    6th Aug 2018
    10:14am
    Does that then translate to "the more passive you are in voting for a government the worse government you're going to get?"
    TREBOR
    6th Aug 2018
    11:40am
    Indeed it does, Ted.... indeed it does...
    MICK
    6th Aug 2018
    12:28pm
    Correct.
    No great surprise that Morrison has sided with the banks. I mean this is a RC this government tried everything to do to bury. Now it's up to customers? Well that worked real well for the last 20 years didn't it.
    HS
    6th Aug 2018
    12:45pm
    Agree.
    George
    6th Aug 2018
    7:43pm
    That is the crux of the problem, Ted, which inadvertently Morrison has led us to think! The 2 tag teams, Liberal & Labor, have taken turns to take us for a ride - Labor sold off Comm Bank, and Libs allowed the rest with no action by the regulators (ACCC, ASIC, APRA) with Labor also looking on (when they were in power).

    Badly overdue solution - all MUST vote out all sitting members of either of these parties (and the rare Greens), by putting them last in preferences. Then, we voters may get back some power - as Morrison has indirectly encouraged us to think!

    Strong actions by regulators (with more teeth) should have been the basic minimum outcome of the RC - but no, Morrison wants to divert responsibility elsewhere (to customers) to help his ABA mates.
    Crowcrag
    6th Aug 2018
    10:26am
    Yes. I agree with Morrison. We complain about the ‘nanny’ state, but repeatedly want ‘them to do something about it’. The pathetic response by the public to getting better deals for power prices, lowering mortgages, changing health providers and negotiating greater flexibility in benefits, are prime examples of public ennui. Best exemplified by the sad voters in W.A. who actually thought they were voting for Pauline Hanson instead of a local candidate.
    TREBOR
    6th Aug 2018
    11:42am
    Simple enough - simple and easy rules are just normal functioning of a government - not some 'nanny state'.

    What do you want? Every single depositor to go down to the bank and tell them where to get off and lay down the rules? Kinda reminds you of negotiating terms of employment as an individual rather than as a group, doesn't it?

    Morrison is an over-entitled, over-advantaged twerp.
    MICK
    6th Aug 2018
    12:29pm
    And working for whose interests TREBOR?
    HS
    6th Aug 2018
    12:48pm
    A 'nanny state' is better than thugs, hoodlums running rampant because the law system is 'passive'.
    TREBOR
    6th Aug 2018
    12:50pm
    Obviously he's on a Treasurer Cash For Comment Contract with the Big Boys....
    MICK
    6th Aug 2018
    1:05pm
    Yes HS.
    Knows-a-lot
    6th Aug 2018
    3:06pm
    Is Crowcrag another government stooge, I wonder?
    olbaid
    6th Aug 2018
    3:14pm
    Guys - I wish you would respect the fact that others may have a different view from you and that they may well be right.

    Acussing everyine who has a different view to your as being a "cash for comment" post by a "government stooge" is rather silly and childish, don't you think
    TREBOR
    6th Aug 2018
    4:08pm
    Pray do not use my TREASURER Cash For Comment comment in regard to another user here.. I was discussion Morrison...

    I only slang off at other users who slang off at me.... otherwise I try to be an honest broker, with views of my own.
    Travellersjoy
    6th Aug 2018
    10:33am
    Yes he is blaming customers.

    The buyer beware 'principle' so beloved of neo libertarians simply means that we all must be experts on everything or it is our own fault when businesses rip us off.

    Just in the past year I have needed to be an expert
    banker,
    plumber,
    carpenter,
    tiler,
    motor mechanic,
    doctor,
    nurse,
    horticulturist,
    IT service provider,
    physiotherapist,
    landscape designer,
    quantity surveyor and costs clerk. Just to name the most obvious.

    My occupational expertise is in none of those areas, yet I need all of them to make my life work, and any of them can bamboozle me with little effort due to my lack of appropriate expertise.

    When Morrison says it is up to customers to choose well, he very well knows that the banksters, energy companies, developers, etc with their armies of accountants, lawyers and PR spinners, easily outgun any but the most expert of customers - which most of us never can be except in our own fields.

    Morrison is throwing us to the wolves. He does not believe there can be economic crimes against citizens, only carelessness.

    Government owes us a duty of care to restrain the wolves with regulation and enforcement, to prevent them feeding on us, the electorate/citizens/customers.

    I will never again vote for a libertarian of any party. A healthy society and economy needs balance, and government has a duty to ensure that healthy society and economy can thrive.
    HS
    6th Aug 2018
    1:18pm
    .I think that he is saying that customers should be forcing competitors to compete for their business with them on quality, value and price.
    However, the problem he hasn't admitted is that the banks, power supply providers and other like it do not provide a robust competitive environment because they all collude to have pricing within a fraction of each other!
    If one bank offers 0.5% savings interest and the next offers 0.515% that is not robust enough competition. If the next bank offered 0.75% interest and another 1.25% then real competition begins but they don't play hard to compete, they are complacent to be much of a muchness because majority of customers are passive. Customers are passive because majority doesn’t have the monetary power to play one bank against the other individually. Morrison meant well but it is unrealistic in the real world. It is actually up to service providers to create a robust competitive market, then you
    will see the pandemonium of suppliers competing for your dollars.
    Let the games begin!
    Rae
    6th Aug 2018
    10:45am
    Rather odd Mr Morrison comes out with this attempt to shift the blame.

    After the Great Depression it became obvious that Classical( neo-liberal) Economics didn't work and would result in nasty banking crises.

    The solution was re regulation and progressively higher taxes.

    As for taking ourselves out of the game. Yes we can.

    If we take ourselves out for long enough the lack of demand will force the issue just like it did in the US in 2007.

    I shop around now and happily move banks, electricity retailers, insurance providers, petrol stations etc. And I'm on a spending strike as the food prices will escalate as the drought revs up. We are old enough to have seen it a time to three surely.
    mudGecko
    6th Aug 2018
    10:48am
    What uncaring arrogance from Morrison! It is impossible for a decent person to be as greedily slimy as a bank's schemers. I cannot see much difference between banks' scheming collusion and other organised crime.

    If ever the public needs a government to regulate grasping fraudsters it is in this matter.

    In my 66 years I've never heard such a nasty avoidance of responsibility from any so-called government.

    If this is allowed to pass by the PM, it is the absolute end of any pretext of decency by the LNP, who I've always believed to be the lesser evil of the two major parties. They will have lost me for ever. I'm sure not many of the general populace will side with the bankers.

    These near-gangsters need the addition of a few nights in the concrete cooler in addition to hefty financial penalties. There should be no difference between white-collar criminals and the common garden variety.
    Knows-a-lot
    6th Aug 2018
    3:12pm
    LNP the lesser evil? You forget that it was the ALP that introduced every major positive social reform since WW2 - things such as Medicare, compulsory superannuation and the NDIS.
    Pentop
    6th Aug 2018
    10:49am
    If someone is given a loan to service that is 1.2m and their income is only $50K, it should be very clear to them they cannot service this loan regardless of the fact that some of the collateral may have been from investment properties.

    However deliberate misleading information and clear cases where documents have been falsified to enable loans to be granted is nothing by FRAUD!!! To then blame this on clients without financial nous it nothing but disgusting. This is like blaming someone that trusts a surgeon is responsible when the surgeon clearly cuts out the wrong body part. At some point one has limited knowledge of everything in the world!!!

    Basically it is asking everyone to have in depth knowledge of banking systems and how they operate when often, if not always, things are conveyed in a way as to deliberately deceive or, at the least confuse, the client.

    His statements go towards "letting them off the hook". No responsibility taken because none is needed - that is really what is being conveyed by his statement. My question is how does a "little person" take on a bank if the government of the day is not prepared to support them.

    As for the comments about nanny states.... an example of this where self regulation is the order of the day is the cladding debacle. We, as taxpayers, are footing the bill, albeit unseen, for the removal of cladding from hospitals and lots of government buildings. Why because of no real regulation. If you want to live without regulation, live in a building with cladding and take the consequences. We don't need less, we need more... people have to be held accountable for their actions.
    TREBOR
    6th Aug 2018
    11:50am
    Any viable and functioning society is a mix of capitalist enterprise and regulation - without capitalist enterprise nothing much goes forward - without regulation capitalist enterprise runs the whole field and destroys the economy and the society.

    Let's hear it from the 'Labor is against business' crew.... I've been around 69 years now and never once seen Labor against business.... they may have gone all namby-pamby over women's, ethnic's, and Aboriginal's (etc) 'rights (read special privileges not shared with the entire community - which means automatically they are NOT 'rights') , and abandoned their first duty to ensure fair play in the workplace in favour of 'higher good first' - but they've never actively attacked business - only required that it play by rules.

    The current situation with 'stacked mortgages' based on 'equity' from massive unpaid debt reminds me of the cause of The Wall Street Crash - people borrowing on equity in shares to buy shares and finding the cash runs dry and the shares collapse...

    Stoopid is as stoopid does...
    MICK
    6th Aug 2018
    12:33pm
    Yes Pentop.
    Banks ruined many an Australian because they had the right to do so whether fair or morally corrupt. Mostly the latter on most occasions.
    Morrison is an arrogant self serving piece of work. He oozes like a used car salesman and is not alone in this government.
    For God's sake Australians put this lot in the trash where they belong. NOTHING, I repeat NOTHING could be half as bad....and for any of our resident LNP trolls spouting 'debt' don't get me started.
    TREBOR
    6th Aug 2018
    3:29pm
    Wait until they get finished with the farmers during this drought.... then it'll be a fire sale of all the grazing and growing property to any Asian comer...
    CarolAT
    6th Aug 2018
    10:58am
    What a great idea..let’s go into competition with the CBA, NAB et al. Any takers? And while we’re at it we can go into competition with Coles, Woolies, Qantas and Virgin. Have any small players ever been able to successfully compete or do they simply get swallowed up by the big guys?
    MICK
    6th Aug 2018
    12:35pm
    Actually we need a bank of mum and dad (not the kids). A peer to peer project. The over paid CEOs and their Boards will take notice of that..........and quickly make sure to make this illegal.
    andromeda143
    6th Aug 2018
    11:20am
    So.... after all the hoo hah has died down our Liberal representatives still believe that the market will fix everything... a bit like the 'trickle down economic theory'. Why should our government do anything to correct the wrongs done to its citizens. After all, when left to their own devices, most corporations demonstrate social consciences and change things for the good of society voluntarily.
    Do they bullshit!! This is the continuation of the 'Predator Theory'. The powerful eat up the weak and lick their lips at the thought of more to come.
    Banks, Insurance companies and Super funds need to be reined in and controlled. More importantly, politicians need to be reined in and given a clear message, 'YOU CANNOT GET AWAY WITH RIPPING OFF YOUR CONSTITUENTS'.
    Labor is not perfect and does some stupid things at times, but credit where it is due. Mr Shorten and his mates forced this Enquiry on the government and it has shown what a disgrace those in power are. Now let us see if Mr Shorten and his mates will follow it up and force the creation of a national ICAC and a financial industry commission which will make those 'bastards' play fairly.
    TREBOR
    6th Aug 2018
    11:53am
    I won't hold my breath waiting for shorten and co to do much - they're way too busy pushing through the Great Socialist Equalisation Revolution - by shoving some down into the gutter so their chosen ones can rise above it...
    MICK
    6th Aug 2018
    1:02pm
    Correct andromeda. Labor has its bad behaviour as well but this is nothing compared to what the current LNP government has done over the past 6 years and the debt it has raked up for the nation. I can't believe that even the right wing propaganda media could let $600 billion ride but that is what it has done.
    maelcolium
    6th Aug 2018
    11:28am
    What would you expect? This guy was an executive with the Property Council of Australia for so many years, his opinions have been formed similar to those of Turnbull's while working for the giant squid (Goldman Sachs). And then he announces that GST shouldn't apply to female sanitary products to show how in tune he is with normal folk yeah right. When will people realise that the cabinet is made up of these people who fully support free markets and trickle down theories which have no basic in fact but are ideologies and entirely anti-social? Remember these parasites at the polling booth and don't forget that the Abbotista and his ilk are lurking in the wings. Pauline Hanson has nothing on these guys.
    TREBOR
    6th Aug 2018
    11:40am
    I cannot tell a lie - I HELD that bank up at the point of an armed contract and demanded they pay ME fees for handling my money......
    disillusioned
    6th Aug 2018
    11:49am
    This LNP mob will blame anyone but their own incompetence for the mess this country is in after 5 or so years of their "rule". Remember, Turncoat et al were the ones who actively resisted a Royal Commission into Banking, etc. Try getting a better deal for anything these days when they're all in bed with each other! Who can trust the pollies again when all they seem interested in is feathering their own nests complements of the Public Purse? Not me, that's for sure!
    TREBOR
    6th Aug 2018
    11:57am
    "Need for more players"? How many, Scottie (beam me up - not a trace of intelligent life here) - let's make the Big Four The Big Eight... yeah - that'll really change the nature of the oligarchy running the show.

    Talk about economically illiterate - not to mention socially illiterate....

    I'm positive that if the business Unions (all closed shops) said to tell the public the moon was made of our national gold reserve in safe keeping, he'd do it.

    Now - about that stolen $130Bn hoarded for YOUR benefit in the caymans, Scott.... when is THAT coming home and into consolidated revenue just like the retirement fund, where any government can start screeching that consolidated revenue can't afford to keep paying YOUR pensions etc.
    TREBOR
    6th Aug 2018
    11:59am
    Or is that Hateful Eight??
    MICK
    6th Aug 2018
    12:36pm
    Governments past should never have allowed banks to buy out smaller players. Difficult to go back in time now but not impossible.
    TREBOR
    6th Aug 2018
    3:30pm
    My point is that the cure for the cancer is to add more cancer....... that'll tip it over the edge and create an immune response like Lorenzo's Oil... as long as the patient doesn't die first.
    ace
    6th Aug 2018
    12:02pm
    As usual, Morrison is of little or no use how embarrassing is it to have him wandering around making speeches in London !
    But he did make one good point we need to stop being passive ! Lets start with getting rid of him !! These are the same people who are trying to shut down GETUP by changing the law because the stood up to Govt !!
    BillF2
    6th Aug 2018
    12:11pm
    So Scott Morrison believes that more players in the banking industry will improve the industry, choice, etc. Pigs might fly. Just as in politics, the big boys don't want anybody taking business from them, and Scott Morrison is not going to change that situation. Money speaks louder than words!
    TREBOR
    6th Aug 2018
    4:10pm
    He has not an economic bone in his body, but I'm sure god will provide.. just like Allah when some poor old Musso is chopped at the firing squad - if wrong has been done Allah will set it right in a later life... sure...
    KSS
    6th Aug 2018
    12:23pm
    Australians already pay the 'lazy' tax every year on many many products simply because they fail to shop around: health, car, home, contents insurances, mortgage, utilities, phone plans, credit cards, loans, bank accounts, superannuation accounts, because they blindly renew policies and contracts without checking. No matter how simple the product, process, PDS may be, if people don't bother to check, compare and read the material they are given, they will still pay more than they need. Mr Morrison is correct and there is only so much any Government can do. The Government can put the framework in place but it is up to all of us to decide what is best for us in our personal circumstances. The Government simply cannot hand-hold people over every financial decision they have to make. he is right again in saying "no-one cares more about your finances than you do" - or at least that should be the way it is.
    MICK
    6th Aug 2018
    12:38pm
    Shopping around in a cartel is difficult. Try that on food. Yes, we do it but takes preparation, time and a lot of effort but saves a few bucks. It does not push down prices as the big players are in it for the mega profits and they control the game. Think farmers getting nix for produce...which is then sold for ridiculous prices.
    Joy Anne
    6th Aug 2018
    12:31pm
    What a load of Bullshite. Morrison has no idea and they were the ones trying to not have a Royal Commission.
    MICK
    6th Aug 2018
    12:39pm
    Quite so. People forget and we need to remind them as the right wing media ramps up to total propaganda mode to get this crooked illegitimate government back in.
    olbaid
    6th Aug 2018
    12:55pm
    There is truth in what Morrison says . Obviously hard to swallow judging by the majority of responses thus far
    MICK
    6th Aug 2018
    12:59pm
    Ha, ha, ha. Truth and Morrison cannot be used in the same sentence and pushing dishonest and corrupt behaviour back on individuals who do not have deep pockets to use the courts is nonsense.
    GrayComputing
    6th Aug 2018
    1:42pm
    Dear Olbaid. The frequent government rules changes that makes us worse of are the ones that that are hard to swallow.
    Most of us are in between a rock and a hard place.
    On a daily basis there are frantic back pedalling changes of rules on a by the government.
    No laws exist to help protect us from robber baron banks.
    So what we had planned for and thought we could achieve way back when, is now being demolished in front of our eyes.
    Only a super rich person a paid for Liberal Party Web troll ,like you appear to be, would come out in support of unspeakable plans and blame us comments by the glossy PR from unspeakable ministers.
    MICK
    6th Aug 2018
    1:54pm
    Quite so GrayComputing.
    Adrianus
    6th Aug 2018
    2:19pm
    olbaid, The ignorant fear what they don't understand. LOL
    olbaid
    6th Aug 2018
    2:41pm
    I think you may have hit the nail on the head Adrianus
    Knows-a-lot
    6th Aug 2018
    3:24pm
    Only an ignoramus or rich parasite would vote LNP.
    olbaid
    6th Aug 2018
    3:29pm
    Know-a-lot what an absolutely nasty thing to say.
    You have just insulted the majority of the population who voted LnP

    Aussies vote for party's based on their policies and what they offer to the country.

    Maybe one day soon labor will get back in , but for now their leadership and their policies are detrimental so I will not be voting for them
    TREBOR
    6th Aug 2018
    3:35pm
    I beg to differ on several points - olbaid is not all bad like some here, so cannot be a party stooge...

    As for fearing what they don't understand - it is not unreasonable for people to enter into an arrangement on a certain set of terms and expect that arrangement to be carried through n the same terms - unless and until mutual agreement is agreed upon.

    The problem raised by GrayComputing is the arbitrary and mostly negative changes made to pre-existing agreements, and all of these seem to be damaging the prospects of the retiree and those entering the workforce now... who will one day be retirees, and under the current regime of part-time etc, will NEVER establish either a solid nest egg for retirement or a solid foundation in assets on which to live in retirement - I stress without selling them off since they are there to be enjoyed in life as the fruits of years of effort, and not just some politician's plaything because the politicians stuffed the economy.

    That's just me being nice, Paddy....
    TREBOR
    6th Aug 2018
    4:13pm
    Now let's get back to that industrial relations issue - just like entering into an agreement, people enter into a workplace agreement, awards or substitute - and there are rules - and the principal one laid down by St Howard himself was that no worker could be worse off under a workplace agreement than if under Award full.

    What we have now is rampant management standover and thuggery - in that they demand a new agreement on their terms alone and without proper negotiation - and without instant agreement by the serfs - they simply sack the lot and re-hire.

    No wonder St Howard removed the guns from the decent, loyal, hard-working people of this nation .....
    TREBOR
    6th Aug 2018
    4:16pm
    Same applies here with banks AND with government - NO changes may be entered into as regards an agreement without mutual agreement based on full knowledge.

    All the changes to banking and to retirement packaging were done to the customer without agreement - just a clear example of standover and thuggery.....

    How the chickens fly home to roost and land like Emus on the shot-house, once these types of clown start ranting about organised labour being thugs, and using standover and blackmail etc.... the sword always cuts both ways.....

    When you set out to seek a royal commission of revenge and standover, first dig two graves - one for those you attack - and one for yourself.... you'll need more for yourself.....
    Adrianus
    6th Aug 2018
    2:16pm
    I say we do away with Royal Commissions. It seems the results are never satisfactory. Hardly anyone was satisfied with the RC into Union Corruption.
    MICK
    6th Aug 2018
    2:24pm
    So does your government employer...unless it is against Labor and unions. The it's ok.
    Hide the truth. Attack any opposition. The operation of a dictatorship. Coming to Oz.
    Knows-a-lot
    6th Aug 2018
    3:26pm
    We need MORE Royal Commissions - into the telecommunications industry, the medical profession, the insurance industry as well as the financial sector.
    TREBOR
    6th Aug 2018
    3:37pm
    That's because the royal commission int Unions was a lie from the start, and was nothing but a calculated attack using taxpayer money on organised labour and on the current leader of the Opposition as a past Union head....

    Even the coward John Howard advised against it.... and he created the environment in which such personal attack nonsense holds sway in place of industrial relations.... it's called management thuggery aided by government thuggery.
    floss
    6th Aug 2018
    2:19pm
    The Old Trickle Down System know it well having changed a wheel on a truck full of cattle all you will get is covered in bull shit.
    olbaid
    6th Aug 2018
    2:38pm
    Trickle down works as has been proven recently in the US
    The corporate tax cuts has seen GDP frowth at a record 4.1% instead of the forecast 3% without the cuts
    Corporare profits have increased 20% with dividends and share price growth enriching the US shareholders and average worker's pension accounts
    Also record jobs in the US with full employment
    Knows-a-lot
    6th Aug 2018
    3:29pm
    The fruits of that growth go primarily to the rich. Corporate profits and dividends benefit only the wealthy. This is evinced by the fact that the gulf between rich and power is widening.

    Record jobs - at near slave-labour hourly rates...
    TREBOR
    6th Aug 2018
    3:38pm
    Teickle down what?

    I'm afraid you are thirty odd years behind the times.... it's never worked yet....
    olbaid
    6th Aug 2018
    3:43pm
    Trebor - I just explained. Proof that trickle down economic works. Just look at the results in the US since the tax cuts
    TREBOR
    6th Aug 2018
    4:18pm
    More to do with locking the gates, methinks.....
    olbaid
    6th Aug 2018
    5:19pm
    if you say so Trebor. You will believe what you want to believe and ignore the facts. Up to you
    TREBOR
    6th Aug 2018
    5:30pm
    This could provide some reading...

    https://www.thebalance.com/unemployment-rate-by-year-3305506

    Be interested to see where the trickle-down has worked - every time a tax cut comes in unemployment has risen in the US.

    I say again - it has never worked.... trickle-up works wonderfully.
    Adrianus
    7th Aug 2018
    10:38am
    The opposite to "the old trickle down theory" is "the new trickle up theory."
    With the new trickle up theory the less work you do the more you get paid.
    I think the majority of Australians will think this is a great theory.
    Another popular and similar theory which compliments this is the credit card which doesn't need to be repaid.

    I'm kinda dubious about the longevity of such theories.
    DeepBlue
    8th Aug 2018
    8:56am
    This TED talk by an extremely wealthy USA entrepreneur - who with some friends also owns a bank - sheds some light on trickle-down economics and suggests the necessary alternative to improve economic well-being for all, the rich, the poor and those in the middle; strengthening the economic power of the middle classes. See: https://www.ted.com/talks/nick_hanauer_beware_fellow_plutocrats_the_pitchforks_are_coming

    This is an economic strategy which banksters - operating within the present concept of banking - are extremely unlikely to support because it threatens their present scams and skullduggery.

    Banking as we know it now needs to end and be replaced by a new system of exchange that does not permit the criminality, corruption, insatiable greed and total disregard for other humans which the present system proliferates.

    A Royal Commission or other tweaking of the system will not solve the problem. This needs a revolution, a new economic strategy of exchange that does not require banks as we now know them.

    Money is a temporary store of human effort, creativity and enterprise. It gives a sense of value to what we do and create. It gives us the ability to trade with each other. In the modern world we do not need a bankster standing between us to trade value or wealth. We can do it directly. We no longer need banksters with all their convoluted attempts to create services or products principally designed to rob us of the wealth we have created.

    Robinson is right in the sense us consumers need to demand the services we need. The critical need now is to shut down the entire banking system and thereby save our economic-selves and rid the world of the main source of wars, criminality, death and human suffering. Banks are the most successful criminal and terrorist organisations, and presently, we pay them to do it.

    History shows there will never be an honest or equitable banking system. Banking has been the foundation stone of wars, religious divisions, terrorism, death, assassination and incalculable human suffering since the money changers had Jesus nailed to the cross after he tossed them out of the temple. Banking is a public institution we no longer need, and we can no longer afford to fund.

    People in Africa exchange value, run businesses and trade without banks. They use modern technology - mobile phones - to exchange value based on mobile phone credit as the "currency".

    It's time to think out of the box. Get rid of banks. They are the source of most of the world's inhumanity and early death. They are shifting the world back to a fuedal society with them at the top. They are destroying democracy by hijacking and twisting capitalist principals to benfit themselves.

    This entire circus needs to go; if we want the world to be a better place.

    In the 2008 bankers induced world financial collapse, Iceland fixed their version of the problem, not by bailing out the banks, but by giving the citizens the bailout money so they could pay out their debt to the banks. And they put the banksters into gaol.

    The citizens of other countries have also dealt a blow to the banks. Then banksters are fighting back and the threat of "too big to fail" is their catch cry. If Australians no longer want to be abused, ripped-off, murdered, compelled to a deprived retirement and early death, and our children sold into a life of economic slavery, we need to stand up to these psychopaths. Like little Iceland.

    It can be done. Modern technologies allow us to trade and to exchange value without the criminal banksters in the middle.

    We are smart. We can work out the answer to potential problems and address our exchange and value and investment needs without banksters using us as slaves and stealing the economic wealth created by our skill, effort and enterprise.

    We just need to do it. Get our of the banks. The more money we giove to banks the more people die around the world and the more power we give them to push us into economic slavery. The fundamental principle of retail banking is to get everyone into as much debt as possible. We need to get out of this scam.
    Old Man
    6th Aug 2018
    2:21pm
    I don't agree with Morrison when he states that it's the customers who won't move and, by inference, that it's their fault. The problem with banks is that there are so few of them accessible to most Australians and they all offer much the same so what's the point of moving to another. If you have a mortgage the cost of moving when legal fees, application fees, stamp duty etc is added in, a small drop in interest rates doesn't compensate. There is no competition between banks. Watch them follow each other with fees and interest rates within a matter of days and convince anyone that they are independent of each other. If you don't have a mortgage but have salary, family allowance and sundry other income direct credited together with direct debits then moving is a very difficult task. It's just like big oil, they run their own race and no government of either persuasion has been able to do diddley squat about it.
    olbaid
    6th Aug 2018
    2:40pm
    OldMan - banks are businesses that need to make a decent return to its shareholders
    All this bank bashing and tighter controls has dented bank profitability.
    Analysts forecasting a 4% drop in CBA's earnings announcement on Wednesday - bad news for mom and pop investors and yours and my superannuation fund
    Old Man
    6th Aug 2018
    3:21pm
    I agree, olbaid, that banks are businesses but I believe that they are also monopolies with little to no real competition. Did those analysts say that the Royal Commission was going to cause the 4% drop or do you think that the worst drought in 60 years may have an affect. Businesses all over Australia are dropping turnover because of this horrendous drought so why not the banks which lend to farmers?
    Knows-a-lot
    6th Aug 2018
    3:31pm
    "Dented bank profitability"? What a joke! The bastards are racking in BILLIONS in profit.
    KSS
    6th Aug 2018
    4:49pm
    Profit is NOT a dirty word!
    TREBOR
    6th Aug 2018
    5:30pm
    Highway robbery is......................
    Knows-a-lot
    6th Aug 2018
    3:04pm
    Trust these incompetent nincompoop Lieberal morons to blame consumers instead of their corrupt and greedy mates in the financial sector. The mind boggles! The sooner these imbeciles are booted out of government the better.
    TREBOR
    6th Aug 2018
    4:18pm
    When all else fails - blame the victims.
    Crowcrag
    6th Aug 2018
    3:32pm
    Gosh! I am a govt. stooge! What is the salary? Interesting switch of roles - I was the Union Rep. in my workplace. I merely also observed that people complain about the nanny state. You cannot have it both ways. And if you wish to employ a tradie, do you not check their credentials etc available on several internet sites? If not, more fool you. I am no Morrison fan, but he is the treasurer and knows a lot more than you or I do, and therefore his public comments should be judged on merit rather than personal prejudice. I begin to tire of the same old vitriol hacked out like expectorant from the same old names, just because they can.
    Rae
    7th Aug 2018
    7:05am
    Yes indeed. Anyone who trusts a bank or borrows more than they can repay deserves to lose.

    The APRA legislation means anyone with savings or investments in banks may lose too.

    Morrison is right. It's time to get out of Australian banks and businesses if you want to avoid losing capital.
    dreamer
    6th Aug 2018
    4:47pm
    Scum morrison at it again as that idiot last week on Q&A we do it day by day that is to attack workers in any way they throwing money around like they are all ready going to run the super like the high court with Barnaby LoL us grey hairs don't forget when it comes to our super
    dreamer
    6th Aug 2018
    4:58pm
    Watched the RC today I believe it was NAB super under a different name even the lawyers where smiling and it wasn't for them
    travelman
    6th Aug 2018
    5:13pm
    Scott Morrison, you are intent on insulting the public, now blaming us for the banks criminal behaviour. you are a disgrace as politician. What are you doing? are you trying to loose the next election? If so, it is the best thing you can do for yourself.
    travelman
    6th Aug 2018
    5:23pm
    Scott Morrison, Just to add one thing, If you believe we are passive and part of the problem of our banks and need to more aggressive then we SHALL IN LARGE NUMBERS at the ballot box in 2019. You lot, Prime Minister and all will be delivered to the 'scrap heap' where you belong. Thank you for advice, we will carry that advice into the election, GOODBYE.
    dreamer
    6th Aug 2018
    5:34pm
    tr your are so right
    MD
    6th Aug 2018
    8:06pm
    "There is no one more committed to looking after your interest than you. You can't take yourself out of the game and listen to those who want to infantilise you by promising a cotton wool regulatory system, with nanny-like regulators, that rather than awakening and empowering your consumer power, will rock you off to sleep.”

    Easy for our illustrious Treasurer to say - post fact. Doesn't everyone get a buzz tossing
    toilet rolls at everyone else AFTER the shit's hit the fan ? Although Scomo prides hisself on being know-all #1, it pains me to admit - he has a valid point - infantilization.
    Most comment above underscores his choice of pejorative given that the banks, for yonks, have been sticking up the lot of us. Where were you lot then, what were you doing that, endowed with all your derring do wisdom you failed to detect your bank having a lend - of everyone! Probably best if you just keep your heads down nibbling grass, ruminating over it and let nature take its course by recycling the process....BAHHHHH !
    TREBOR
    6th Aug 2018
    10:53pm
    Morrison is a typical politician/public servant - so surrounded by comfort and privilege that he has no real idea that ordinary folk don't have the time to argue the point with a bank person - all they want is an account and a fair deal from it, and when that is promised and then that promise is not met - they have every right to complain.

    How many ordinary folk have the time or the knowledge to go out and research all the ins and outs of a simple transaction like opening a bank account or having a superannuation scheme? they rely on advice from 'experts' - who are too often wolves in sheep's clothing.

    We should pay our politicians a much smaller retainer and offer them a bonus at year's end in return for their productivity.

    Your personal elitism and scorn for the ordinary folk is disgusting.

    MD obviously doesn't stand for Medical Doctor.
    MD
    7th Aug 2018
    9:33am
    Don't know "How many people have the time or the knowledge".... bah, bah,bah and don't care, would it make one iota of difference even were "ordinary folk" to have such an ability, much less apply it accordingly to ensure their own wellbeing ?
    But of course your "experts" ARE "wolves in sheeps' clothing" (that's a no brainer) it being the sure fire way of them gaining access to the fold by stealth - just another instance of 'Mary had a little lamb' given entirely new meaning like 'lambs to the slaughter'.

    And whom should we second to determine either of the pollies "retainer/bonus" you so eloquently allude to - you ? Or the rest of the flock ?

    Your overweeningly sanctimonious, pompous and regularly excessive diatribe makes my "elitism" seem small beer by comparison. Bottom's up & Cheers !

    Your perspicacity re 'MD' says it all, I'd love to stay and chew the fat but gotta go attend to some mulesing. Bahhhhh- ha!
    TREBOR
    6th Aug 2018
    10:43pm
    This one is like Joe's 'lifters and leaners' - a comment best left to a closed room of true believers and not open to public scrutiny. (LMAO)...
    MD
    7th Aug 2018
    9:39am
    Both "This one" and most other of your comments to boot sunshine - there's hope for you yet but it may cause a headache and (extraction) prove painful.
    PlanB
    8th Aug 2018
    8:52am
    About Banking practices -- take a listen here -- this bloke -- a Barrister -- has some guts and told it how it is -- what a lot of crooked scum --

    https://iview.abc.net.au/show/drum
    P$cript
    8th Aug 2018
    10:12am
    Governments have created the "competition is good for consumers" world, which gives us choice, but what is happening is my time is wasted chasing the best deal.
    Once you find what is the best deal, is it actually the best? If the company is making huge profits, does that mean they are efficient or ripping off customers, either way the deal should be better than what you are able to obtain, this then doesn't say much about the other companies deals.

    The number of times I have found a supposed better deal then contact the company I'm already with and tell them I'm leaving them they magical can match any deal, TIME WASTED!
    If they are able to all match the best then the only reason there is different deals is an attempt confuse to maximize profits.
    PlanB
    8th Aug 2018
    10:27am
    Yes P$rcipt, I know just what you mean -- and they hound you to come back to them


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