Is it any surprise that the banks claims that they can’t pass on the interest rate cuts, have been shot down by analysts who point to burgeoning margins on margins and corporate loans?

Last week, there was, yet again, another rate cut for Australian mortgage holders, and once again we get the message that banks will not be passing on the full cut due to “increasing cost of obtaining capital”. Verbal diarrhea I hear you say? I’m inclined to agree with you on that one.

It baffles me to think that every time there is a rate hike, the banks put the rate up instantly, but on the reverse side of the coin, nothing happens. It’s a blatant money grab that defies the law of fair trade in this country.

Then we have the Almighty Wayne ‘Super’ Swan coming out against the banks in all his might stating “Certainly I’m pretty disappointed with their decision or the decisions that have been announced so far” on Wednesday. He went on to say that “You know what they’re like, they do need a good kick up the bum occasionally.”

This comes from the treasurer of our country! His opinion is laughed at by bankers, and should not even be printed as it’s not worth the overpriced parliamentary paper it’s written on. What Wayne Swan needs to do is put something in place to demand that banks follow the lead of the reserve bank, as that is what they base their pricing on, otherwise keep his mouth shut. I understand that banks have a responsibility to their shareholders to return a profit, but they also have a responsibility to their customers to give fair business practice, which is clearl not taking place here.

Call me a conspiracy theorist, but do you think a backroom idea is for people to lock in fixed rates in the short term, and then bring in the rate cut to it’s existing customers? Possibly. The fact is that Wayne Swan needs to grow a pair, and do something about the people he is supposed to serve before corporate greed takes over, if it hasn’t already.

If you would like to voice your opinion to Wayne Swan, as I have here, his parliamentary email address is Wayne.Swan.MP@aph.gov.au

PD