ScoMo completely loses the plot

You have to give SA Treasurer some credit for chutzpah in announcing the SA Major Bank Levy.  If it was good enough for ScoMo, who couldn’t ever explain the impost apart from needing the money and no one likes the banks, it was good enough for Tom.

But am I the only one who thinks that ScoMo has completely lost the plot? Evidence was abundant in the Budget Speech which we must assume he wrote because no Treasury bureaucrat would use that loony language or make those very “progressive statements” – for example, about the government looking after us all.  Oh please.

But then this little homily popped up on my Facebook page.  Apart from the fact he can’t spell, this is really quite bizarre stuff from a Liberal politician.

I really wonder what he is smoking?  At this stage, he seems to have more in common with Red Ted Theodore than Peter Costello.

 

 

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It is vital that we protect vulnerable Australians from predatory credit card practises which seek to make a quick buck from people’s misfortune, and compound their financial hardship.

Before the end of this calendar year, the Turnbull Government will introduce a suite of measures to force credit card providers to scrap unfair practices.

 
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34 Responses to ScoMo completely loses the plot

  1. Suburban Boy

    With respect, Judith, you can’t lose something that you never had in the first place.

  2. Craig

    And this policy reduces debt and deficit by how?

  3. RobK

    It’s a pretty defined demographic that feels it needs protection from credit card sharks. The “sharks” persist but just take “fairer” bites of the unwary in a longer “fairer” supervised march to serfdom.

  4. Myrddin Seren

    Let us remind ourselves of this laser-like insight:

    Senior Liberal speaks out against Turnbull: ‘The party will be decimated’

    “The Turnbull government is at war with the people. This is a government which hates their own constituents. The Liberal Party has lost touch with what it stands for and will be decimated unless it changes tack. Across the next electoral cycle the Liberals will lose power federally and in every state with the exception, perhaps, of Tasmania.”

    Those are not the words of the opposition, but of one of the Liberal Party’s leading strategists of the past 20 years.

    Mr Greene said the party’s drift from its base was compounded by the lack of professional political operatives now working in parliamentary offices.

    I have never seen a set of government ministers more captured by their departments,” he said.

    Pretty sure ScoMo and J-Bish would be high on the long list of ministers being lead around the paddock by their departments. ScoMo seems to be a walking advertisement for Lucy Turnbull’s beloved Grattan Institute.

  5. john constantine

    I would actually agree with being able to disable the ‘Pay-wave’ function on a credit card.

    Going into debt by just waving your smartphone at a robot terminal is brave new world stuff.

    The cashless society passes a lot of potential control over proles lives to the artificial intelligence software of the big banks.

    The ability of the feckless libs to address this issue before the shorten foundation issues federal government guarantees to the union super funds to operate credit cards and supply consumer credit to their clients is unfortunately, zero.

    Bash the banks, prepare the proles for the disruptive entry of union super funds with blockchains and shorten government backing.

  6. john constantine

    Their facebook uses artificial intelligence software to exploit the emotions of the vunerable to lock them into facebook and facebook approved political views.

    Once the skynet software can process the movements and spending triggers of proles, the onselling and debtbuilding possibilities are endless.

    “We notice you are walking past your best friends favorite shop, it is her birthday tomorrow, if you love her you will drop in and buy her something nice that will make her happy”
    Just paywave it, we will lift your credit limit for this special occasion.

  7. john constantine

    Once your phone is your credit card, vunerable people can’t even leave their credit cards at home to prevent impulse shopping, or even cut up their credit cards, they have to be alert and disciplined all the time.

  8. Art Vandelay

    Typical from the Socialist Lite Party.

    There have also been ads (paid for by taxpayers of course) on TV lately extolling the government’s plan to get multinationals to pay more tax. The ads make a number of economically illiterate claims that would be more suited to the Greens rather than a conservative party.

  9. cui bono

    So it’s the Coalition government delivering this stuff, not the Turnbull government.
    Re-branding about a year late.

  10. I don’t find this all that bad a thing. I know of people who can’t afford a credit card, but the banks keep issuing them regardless and upping their credit, getting them into further debt, even if they have no ability to pay.

    Years back, someone that I know was getting a constant credit increase, spending to the limit and paying off just the minimum. When it became too much and they finally came to their senses, they then had an impossible time getting the card cancelled and, as soon as it was, a week later a new card was issued to them.

    The banks prey on these people and there are far too many of them. Banks especially do this if they think they have a chance to claim on property because of marriage etc.

  11. .

    I don’t find this all that bad a thing. I know of people who can’t afford a credit card, but the banks keep issuing them regardless and upping their credit, getting them into further debt, even if they have no ability to pay.

    I find this hard to believe.

    The banks prey on these people and there are far too many of them. Banks especially do this if they think they have a chance to claim on property because of marriage etc.

    What?

  12. Biota

    Simple solution- debit card. Then you can’t spend what you don’t have.

  13. I find this hard to believe.

    What’s hard to believe? That there are people who fall into a spiralling debt trap?

    What?

    If there is say joint ownership in a home and one half goes into credit card debt, the bank can call on that home for recovery of debt.

  14. .

    If there is say joint ownership in a home and one half goes into credit card debt, the bank can call on that home for recovery of debt.

    They can’t call on it. They have to sue for it.

    What’s hard to believe? That there are people who fall into a spiralling debt trap?

    Yes it is. Banks are not only subject to the consumer credit code or whatever it is called these days, but banks don’t make money off recovering assets as debts, they lose an ability to continuously lend out monies with compound interest, but if they are leveraged 20:1, they cannot take too many losses or they will be insolvent. They have strong internal and external motivation to lend responsibly.

  15. They have strong internal and external motivation to lend responsibly.

    I’m telling you exactly what happened to a close friend that I helped out. It was many years ago, but it was very real. That particular bank was doing exactly what I stated.

    And who do you think has the better ability and a bottomless pit of money to sue for debt? And why do we still read about banks and the way they treat their customers?

    You’re the first person I’ve ever encountered that appears to think banks are above reproach.

  16. .

    Banks are not above reproach, but these stories of irresponsible lending have consequences. Banks cannot give out bad loans business wide or they fail as a business.

    And who do you think has the better ability and a bottomless pit of money to sue for debt? And why do we still read about banks and the way they treat their customers?

    So you agree that they cannot “call” a property unless it is mortgaged? Banks treat their customers like crap because they are large organisations full of fallible people who don’t communicate properly with each other. There is no plan to treat customers like sacks of shit. Australia generally sucks for customer service anyway. This was never planned either.

  17. Howard Hill

    I don’t find this all that bad a thing. I know of people who can’t afford a credit card, but the banks keep issuing them regardless and upping their credit, getting them into further debt, even if they have no ability to pay.

    So you’re saying the bank put a gun to their heads and they had no choice to refuse?
    Did they not have the intelligence to cut the card up and throw it in the bin?

  18. So you agree that they cannot “call” a property unless it is mortgaged?

    In my example, that was the case. And you’ve just answered why this happens. Do you think that the tellers and others do this because they like to do this? No. it’s part of the corporate requirements and management at all levels fall into lock step to meet corporate goals and push these things.

    I have no issue with banks making a profit, but I do when it comes to how they accomplish this. The ends do not justify the means.

  19. So you’re saying the bank put a gun to their heads and they had no choice to refuse?
    Did they not have the intelligence to cut the card up and throw it in the bin?

    Oh to be as perfect as you are. I don’t profess to understand how people fall into these traps, but they do and there is always someone ready to take advantage.

    Tell me, why did the acting commissioner of taxation Andrew Mills, get caught up in an alleged $165 million scam? Did someone put a gun to his head? Did he not have the intelligence to not get involved?

    Why do so many supposedly well respected individuals of society go bad?

  20. Diogenes

    I wonder if those twits at Treasury modelled the fall in the reveipts from the 15% super earnings tax. Collegues with 1st State share options have seen a 5-10k fall in the value of their super

  21. Howard Hill

    I don’t profess to understand how people fall into these traps

    These are not traps. A trap would imply that something has been hidden from the victim. Everyone knows the consequences of spending money you don’t have or cannot repay.

    So we should all suffer to cover for the consequences of the stupid?
    At what point do we stop trying to protect the chronically stupid from themselves?

  22. These are not traps. A trap would imply that something has been hidden from the victim. Everyone knows the consequences of spending money you don’t have or cannot repay.

    You are so perfect. You must be a personal friend and business acquaintance of our PM, another person that understands the common man (not).

    So we should all suffer to cover for the consequences of the stupid?
    At what point do we stop trying to protect the chronically stupid from themselves?

    Yes, the bankers etc would suffer, but not perhaps the common man. If our PM keeps getting so many chances, why not those who suffer from his hubris?

  23. struth

    Personal choice and responsibility.
    No one makes you use a particular bank.
    This is purely socialism.
    Government control of business.
    This is why we have private companies banging on about diversity.
    Keeping on the right side of those now actually in control of their business.
    The government.
    It’s all over people.

  24. Howard Hill

    It’s not a matter of being perfect, it’s a matter of taking responsibility for ones own actions. Look right, look left, look right again before crossing the road. Remember that?

  25. It’s not a matter of being perfect, it’s a matter of taking responsibility for ones own actions. Look right, look left, look right again before crossing the road. Remember that?

    All well and good, in a perfect world. But the world is not perfect and nor are people. I believe in personal responsibility, but I also believe that institutions need to be responsible as well. Unfortunately, the latter can be, and are, as irresponsible as individuals.

    But why do you object so vehemently to that rather simple list of objectives?

  26. Shy Ted

    The “Coalition” Government! The “COALITION” Government. It’s the “Turnbull” Government everywhere else. Off to the salt mines ScoMo.

  27. Howard Hill

    But why do you object so vehemently to that rather simple list of objectives?

    Because government should stay the hell out of other peoples business affairs.
    It’s not the right of government to tell business how to operate for the sake of stupid people. This is what has led us to the overpowering, life stifling nanny state that we all enjoy, not! Government has killed this country with bullshit laws to protect the stupid from themselves and the stupid just keep getting dumber by the day. Where will it end?

  28. Where will it end?

    You’re over-analysing and over-reacting. All that those points reflect is an edict for banks to be responsible. It’s not taxing banks, nor adding an extra burden on taxpayers.

    You must either be in the banking industry, or lucky enough to never have had to deal with arseholery of the banking industry. All that list says is for banks not to be arseholes.

  29. Mark A

    bemused
    #2422340, posted on June 25, 2017 at 5:59 pm

    I’m not defending the banks specifically, they do the wrong thing many times and are not without faults.

    But.
    Having read the comments, I am convinced that the only one overreacting here is you, bemused.
    How is spending to the credit card limit and paying only the minimum repayment is the bank’s fault?
    How is it the bank’s fault when they try to recoup their losses from an obviously careless, irresponsible customer?

    Sheeesh, all I can guess is that you must have had a really sobering experience with the banks.

  30. Sheeesh, all I can guess is that you must have had a really sobering experience with the banks.

    It’s sobering from the point of view as to how the banks often treat vulnerable people. It’s all well and good to be critical unless you’ve actually see it happen.

    Me? I use virtually nothing but my credit card and owe nothing. What I saw from the original post rang no alarm bells whatsoever.

    What I can’t understand is why this was such an issue to Judith and how it was seen as such a horrible thing. Turnbull’s bank tax and the SA government’s one is far more serious and worthy of discussion.

    Judith didn’t even go into debating the issue, but simply implied that it was nothing but Communism.

  31. Ian

    “Turnbull Government”, “Turnbull Coalition”, certainly no trace of the Liberals these days.

  32. Tim Neilson

    A fairer system of charging interest“.

    So the government is going to regulate the way banks derive the vast preponderance of their revenue – interest from borrowers.

    This, from the geniuses who are giving us $40-50 billion a year deficits. What could possibly go wrong?

    And all to ensure that the banks don’t succeed in their nefarious plan to maximise their bad debts.

    Remind me again why a Peanut Head government would be so much worse than what we’ve got now.

  33. Habib

    What a load of patronising bollocks. If Scomo and the collective keep wiping arses (but missing the really messy bits anyway), no bastard will ever wipe their own. And the cost will of course be passed on. I haven’t used a credit card for decades, debit only, and don’t miss them one bit. Like pokies, piss and all the other evil debbil temptations, grow up, or go broke.

  34. James

    Credit cards are unsecured. The bank can’t take your house if you default. That’s one of the reasons credit card interest rates don’t always rise and fall in line with the cash rate – bad debts reduce the overall profit margin significantly.

    Even ignoring all the regulatory and reputational risk, it’s simply not in a bank’s interest to lend irresponsibly. One customer who writes off at say $5k (and that’s probably below industry average by a fair way), wipes out ALL the annual net revenue from 10 to 20 well behaved customers. Cards portfolios have huge running costs.

    For the same reason, banks don’t push limit increases on customers who display difficulty in servicing the debt. Quite the opposite – they have automatic credit limit decrease processes in place, to limit their exposure to bad debts. It doesn’t get publicised because it doesn’t fit the common ‘big bad bank’ narrative, but I can assure you it’s true.

    And finally, nobody is forced to apply for a credit card. And the rules are made abundantly clear when you do. And there are examples on every statement you receive telling you how long it will take to pay down the debt if you only pay the minimum. And ALL banks will provide hardship support if you show you genuinely need it.

    Honestly, people who blame banks for their own inability to behave like adults and take a bit of personal responsibility for their actions should grow the fuck up.

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