Author: NoddyNoddy
Date: Feb 13, 2008 15:55
> I heard the chief CBA turd on the wireless this afternoon bullshitting on
> about cost of borrowings.
Oh yeah? :)
> WTF is that all about?
You got me.
There is *no* cost of borrowings as far as the banks are concerned. Their
normal wholesale rate is 3 per cent under what the lender pays, and it's
locked in so whenever their rate rises so does the lenders.
> So here we have a licenced bank with Massive Gearing ratios 'pretending'
> they are raising money on the open market....
They do at times, but their is never a *cost* to them for doing so. Any rate
rises are always passed on to the lender so their margin remains constant.
> Well, if it is in fact needing to do that it's being completely and
> utterly mis-managed and is headed down the chute into bankers oblivion
> any time soon.
They do *lots* of crooked shit.
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