Friday, April 11, 2008

Fees, Rates, Profits etc.

How many fallacies is it possible to cram into one article?

I don't know but Mike Duffy takes a crack at a new record with this post.

A sample:

Those currently crying poverty - and no doubt laughing behind closed doors - will break out the champers when they report another round of record multi-billion dollar profits.

How do those profits compare to their market capitalization?

One high-profile bank in Adelaide has pushed up account housekeeping fees by 25 per cent – from $8 a month to $10. And that’s not per customer, that’s per account.

All banks up the ante on a range of fees on such a regular basis one wonders why we deal with banks. Surely, we could get a better deal from the Mafia.

Excellent question, why do people still deal with that bank? Probably because they get something worth the ten bucks a month out of it.

On rates:

Wayne Swan was on the money when he suggested bank customers should vote with their feet and go to finance institutions that offer the cheapest money.

Sadly, the majority can’t – without paying ridiculous exit fees and set-up costs with the next bank up the road.

So the majority are stuck – forced to pay any price the bank sees fit to impose.

Perhaps people shouldn't take variable rate loans if they aren't prepared for the rate to vary.

Of course all this would merely be amusing if it wasn't for the call for "regulation."

He wants some sort of ridiculous interest rate tribunal.


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