Bank De-Regulation to Blame for Current Home Loan Crisis 15/2/2008
Bank De-Regulation to Blame for Current Home Loan Crisis
Deregulation of banks and the financial system is largely to blame for the current home-loan crisis.
Institutions have been allowed to lure people into debt far beyond their capacity to re-pay. The loan industry should be regulated so that borrowers are left with sufficient to live on after they pay their mortgage even if interest rates go up.
Outrageous mortgages have also driven home prices up, as the amount people bid at auction is proportional to what they know the bank is prepared to lend them,.
The banks also exploit borrowers' financial naivety and their fears of missing out on the bandwagon of future price surges with misleading advertising for "restructured" loans and fixed rate terms that are gurranteed only to put more money in the banks' coffers at the expense of the well - being of the borrowers.
Their philosophy is obviously "there's a sucker born every minute".
Don't expect re-regulation of the banks to be advocated by the major parties: if you go to the disclosure returns on aec.gov.au you will see what the banks have given them in the way of political donations.
One Nation has always advocated re-establishment of a publically-owned bank and believes the Government's mandate is the well-being to the citizens of Australia, not the profits of the financial institutions. One Nation calls on the Government to make banks play by the same rules of common decency which everyone else is obliged to follow.