WHY THE GREENS BILL WILL NOT GET TO THE TRUTH and WHY WE NEED A ROYAL COMMISSION INTO THE BANKS
Australian Bankers and regulators are keeping a dark dirty secret:
a massive SUB PRIME CATASTROPHE: 90% of Mortgage Loans have been written according to a cross-section of Sellers. Victims did not know these loans were INTEREST ONLY. That is the essence of this cleverly concealed plan by Bankers. The negative gearing factor is low as most people caught in this scam, earned less than $50,000 per annum per household and many were pensioners who owned their own home and had NO DEBT.
Banks held 1000 strong seminars to tell sellers to hit the TARGET MARKET: People aged 50 - 90 who owned their own home and had no debt. Their tax was low to negligible so the neg gearing factor was never really an advantage. Even young people were on less than $80,000 household income at the time of signing. No deposits were required and Banks used FHOG payment to fund the costs of obtaining a mortgage. Sellers are taught to practice on parents and ask young people to do the same.
Few loans are rejected. Most are unaffordable ticking time-bombs. So why is the Greens Bill problematic and why do we stick to our guns for a FULL BLOWN ROYAL COMMISSION INTO THE BANKS?
There re many answers to this, just see what occurred in WA in 2001 re a RC into Finance Brokers: Lawyers jailed as a result of the report, class actions and compensation ensured justice prevailed and lawyers were disbarred, and legislation was re-written with sweeping regulatory changes to the system. That is where BFCSA members are heading. Our predecessor RECA has achieved all of the above in the past across several states of Australia and in New Zealand.
The Greens draft was a a poor version of a PC and a gallant effort. The Bill was to force MalcolmTurnbull to agree. Remember the Greens did deals with the PM to get $100 million for other concerns, so they understand how to get favours. That was clever. I seriously doubt the PM will agree in any case to the Bill, but as always the document will be famous for that which is not there. The Greens have never called me as to what the real issues are. How could they know what questions to ask or read reports on this subject? Its a crime scene.
If the PM agrees then it will be on his terms and that is dangerous when free market believers are in charge and is the very reason all Australians will be affected by this man-made banking, finance and housing mess.
90% of loans written nowadays are INTEREST ONLY and Government is at great pains to suggest these are not LOW DOCS. That is FALSE. The file documents show en masse, the words 'Low Doc' written on every LAF. (Some are tick-box). One seller commented: If they stop the Low Docs we would have nothing to sell. if they reduce the age down to 50 or less, same outcome. Young people are not even in the market place as they have no home for security. Was this why the PM suggested parents out their own security on the line and risk wipe out?
Mortgage LOANS are identical to the 2008 USA SUB PRIME LOW DOC SCANDAL.
These disgraceful and deceitful IO's are indeed LOW DOC LOANS. BANKERS LIE TO APRA and produce FAKE DATA and STATS to assist the Government with propaganda, who in turn are lying to the people once again. The recently admitted 40% IOs is an escalation from 2014 when Banks suggested "only 10%" are Low Docs. Bankers are LIARS and yet they say the borrowers are Liars. Would anyone seriously trust a Banker right now?
PM Turnbull knows he is a loser for the next election, so he will be busy poisoning the well. Its politics. We know the routine well. I am seriously asking people to look at the evidence around them and think very keenly: Dig Deep in Thought. Ask the Greens to quantify what funding will be envisaged as being made available? Ask the PM to agree and quantify the funding. Its a reasonable question. Less money is not best at all. Otherwise we end up with a watered down token effort resembling "just another blxxxy Inquiry." No-one that is a victim of these banker engineered crimes wants a poor twin version of a pretend 'Claytons" RC.
For histories sake, we need to show we fought hard and long for the REAL McCOY. Others may disagree but they are in the minority it seems and they are not in my position: I am "at the coal-face." of serious investigations into really tragic and gob-smacking thousands of files and I have been blessed with the abilities to dig further. .I simply ask people to take a common sense approach for the greater good of the Nation.
This Scandal is not about the Greens or Mr Katter, this is all about the Banks and the PM's neo liberal policies. In 2001 I faced a rather large task to lift the thinking of the greater number of people, above their own files and cases and see the scandal for what it really is. To look at the future for the next generations of homelessness and for people to belong to something bigger than themselves. . 90% of the Australian bankers' loan books are INTEREST ONLY LOW DOCS and yes the effects can shake our economy for years to come. I leave those thoughts and explanations to the expert researchers and economists.