Swan fumbled the ball
Wednesday January 16, 2008
The blame game is already underway in Australian politics with opposition treasury spokesman Malcolm Turnbull declaring Wayne Swan has "fumbled the ball" with the banks lifting mortgage rates ahead of any official rise announced by the Reserve Bank of Australia next month.
With rising inflation, the banks declaring that costs have gone up due to the world credit crunch, the four major banks ANZ, Commonwealth Bank, National Australia Bank and the Westpac Banking Corp. all lifted their mortgage rate last week.
Mr Turnbull said, "Wayne Swan is being treated like a mug," by the Australian banks.
"They've taken advantage of his inexperience and he hasn't put the pressure on the banks that they need."
"If the banks were obliged to justify this rate rise, they'll be much more cautious about making it in the first place."
"In addition, if they justify it, then when financial conditions over three years improve then they will know that they'll have to reduce their rates."
"Peter Costello was not afraid of being called a bully by the banks, but Australian homebuyers benefited,"
"Wayne Swan is the man who has the ability and the moral authority to oblige them to make that justification and he has failed to do so."
"They've fumbled the ball already and Australian borrowers and Australian homebuyers are paying the price," he said.
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