Two Sitting Ducks Pining for the days when blogs were cutting edge

A Rant About Interest Rates, Banks & Australia’s Economy

Our bank today followed the lead of others and raised its mortgage interest rates. Such are the joys of existing within an oligopolist banking system. Sure, it can be said that if we're not happy we can shop around for lower rates but considering that all the banks conveniently act in lockstep with one another, combined with the charges and penalties, time and effort associated with switching, there's really no point.

All that is left for the poor customer is to take it up the arse.

Of course, the banks argue that this is simply a reflection of rises in the cost of borrowing following the US sub-prime situation. I contend that perhaps the banks shouldn't be so desperate to preserve their extremely nice profit margins and try putting customers, not shareholders, number one for a change. Such a strategy would lead to happy customers, more customers, more profits and happy shareholders. But I guess long-term strategies are of no interest to rich board members simply looking to secure their next performance bonus from the shareholders.

The problem with the Australian economy now is that it is geared towards two income families. Anybody who is not in a position to benefit from two household income earners will struggle to make ends meet. I worry what this might mean for our society on a broader level? How will kids be brought up if their parents are both out all day, every day working to pay for the mortgage? How do pensioners continue to make ends meet? How do entrepreneurs who have taken a risk by sacrificing an income to build a business make ends meet?

I'm sick of hearing about the Australia's economic prosperity, I'm sick of hearing about the boom. It is misleading, as this boom is actually the generation of a dual-stream economy, featuring the haves and the have-nots. All well and good for the haves, and I guess the have-nots just have to suffer and accept their fate.