I think we are definitely seeing signs that deregulation of our banking industry has some serious flaws.
The current economic crisis was significantly the result of a poorly regulated American financial system which allowed banks and other institutions to generate massive paper profits which eventually collapsed.
Here in Australia, these institutions are on a sounder footing. First, when interest rates are rising, they pass on more that the rate increases, which they are permitted to do. Now, yet again, when rates fall, they refuse to pass on all of that decrease.
The last time this happened, the banks overall only passed on 80% of the decrease with Malcom Turnball having the arrogance to basically claim that it was that only happened because he told them to. And now the banks are passing on even less of the rate cuts.
The banks and their shareholders profit but at the expense of the poor sods in the street. And it is all part of the same money-grubbing that brought the US system down. Prime Minister Kevin Rudd has spoken out about international corporate greed, but look at what is happening in our own backyard.
Unprincipled bastards - nothing has really changed since my days in the banking industry during the hedonistic 1980s.