Banks Are Your Friends

[agstar77]

Can't afford to pass on 1/2 % only 1/4. Who says Canadian banks are better? So Harper gave the banks a 1/4 % gift, how nice. Why didn't they demand it be passed along to consumers as is the usual practice. Have the CEO s of the big banks taken a pay cut, if things are so tight? Please feel free to defend this .

[parsley]

Would liquidity be a factor?

[agstar77]

But we have been told over and over that our banks are so much better and more regulated, so why would they not be liquid. If this is true why would they not slashing execs pay and cutting costs? Surely they can't be leveraged that much?

[furrowtickler]

And who has a better plan? Pual Martin - he is probably in the Bahamas avoiding paying taxes at all.

[agstar77]

You don't get it . The rate cut was a necessary move, good. But why let the banks set their own monetary policy. Not a whimper from dear old , get rid of the trusts , Jimbo. Sent out a junior minister to speak to the press.

[parsley]

Considering they are not allowed to merge,a government decision, are therother considerations that come into play when setting interest rates?

[Fransisco]

agstar, easy credit and governments forcing banks to hand out easy credit created this mess. Why do you think doing more of the same will solve it?

[Fransisco]

And if you are considering growing a riskier crop than normal do you need to see more of a premium or less of a premium before you'll grow it?

As far as I can tell it's a heck of a lot riskier to loan somebody money today than it was a few month's ago.

[agstar77]

You are right about risk, but right now lowering rates is one of the only things the governments can do. We will all pay for this later on , but now confidence has to be restored.

[Zaphod]

Sure, let's follow Smilin' Jack's idea of nationalizing the banks or at least setting their rates and see how hard it will be to get credit in this country. Yikes, that man is scary.

[parsley]

"Yikes, that man is scary"

Perfect adjective.
Pars

[perfecho]

What I would like to know is, " how did all the banks decide, all at once ,to only pass on 1/2 of the savings.....would this not be collusion, which is supposed to be a no-no? Or is this a central bank decision?

[Hopperbin]

And go figure, my Royal Bank shares are down 9 1/4% today.