Labor's proposal to apply a levy to the instos to fund "victims" of bank misconduct is, I believe, the first of many steps towards substantial socialisation of massive private losses. The roadmap of policy evolution is familiar.
https://www.abc.net.au/news/2019-02-25/labor-hits-banks-with-640-million-levy/10844908?section=politics
$640m can buy a lot of financial counselling at $70 per hour. Who is to provide the counselling? Failed financial planners perhaps. Regardless, a counsellor can only do so much for a client that is actually underwater and within a market raked by collapsing asset values.
Politicians should consider easing bankruptcy conditions for those caught in this maelstrom because bankruptcy will be the only sensible course of action for vast numbers of underwater borrowers. If borrower bankruptcy processes were streamlined a tad financial institutions would be left with deflating assets in hand. This would trashing shareholder value and leading to further likely bail ins of both borrowers and shareholders. While this would not be a good look it would allow the losses to be realised and from there everyone should, in theory, be able to move on.
No parties moving into election mode will tell the whole truth on the emerging catastrophe which is co-joined to a massive debt bomb. Labor is flagging the issue but does not understand its depth and probably wants to keep it that way. In the meantime the Coalition is saying "nothing to see here, move on".
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Labor's proposal to apply a levy to the instos to fund "victims"...
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