Clearly this week, and probably for the past three weeks, we have to point the finger at BANKS for poor lending practices, offering credit to those who can't afford it and granting mortgages that cannot be sustained in a credit crisis. Forget the AIG incentive, soft dollar party after the bail out. Yep, reps were rewarded with a little holiday despite the insurer nearly going under.
But this week's Friday Fuckwit goes to the Australian Government!
Currently Australian banks 'guarantee' bank deposits to the value of $20,000. This means that if you've been sensible and plonked your hard earned millions into a term deposit, only $20,000 of it is guaranteed safe, refundable . . . There has been a push given the current financial crisis to lift this guarantee to $100,000 however, the Rudd Government has decided in it's completely out of touch wisdom that to guarantee $20,000 more than meets the needs of Australian savers. (Tell that to all the clients we have who have pulled out of the equities market into Term Deposits).
At this point, I feel like singing Somewhere over the Rainbow or Bring in the clowns or Ego is Not a Dirty Word . . .
French banks have more than doubled the guarantee to 50,000 Euros, the equivalent of $68,000, Spain to 100,000 Euros but nope - good ol' Kev thinks that $20,000 is reasonable for bank secure deposits! How are banks to guarantee liquidity and avoid punters putting their hard earned readies under the bed in a biscuit tin?
Hell why do I care, I haven't got any savings over $20,000 and my cashcard was declined today!
Look out Thrifty . . Koala Knickers are on their way!