inevitably banks make the most money in recessions becuase their cost of credit has substantially increased. Ill explain this imperically. You notice when the RBA raises i/r bamks smash up i/r as soon as the annoucment comes out. When its a global recession and the RBA decreases i/r, banks decrease the first one or two the full amount and then they start decreasing it 50-75%; thus margins increases are huge - thats why banks are making soo much money.
And at the same time, which annoys me is that they dry credit up so no one else can make a dollar.
