post election and short cover rally monday, page-18

Inflation is only slightly up due solely to the oil price and drought.
The oil price and drought have a flow on effect to consumers in which they push up prices of certain products due to the lack of supply of that product and the cost to produce and transport the product.
(bananas were a perfect example where a false interpretation of the CPI figures due to them being $12 a kilo...i mean who would buy at that price anyway)
So apart from these 2 cost pressures we in Australia do not have an inflation problem.
What we have in fact is what the USA is going through now,
yet we don't realise it yet as much.
Over borrowing, too much credit available to the wrong people, living beyond our means.
Company profits are high, wages are in check(barring the mining industry)so take out oil and drought related products and inflation doesn't exist.
The greed of the banking system has a lot to answer for the woes we have today.
Why should we bail them out for their folly(eg raising interest rates higher than the reserve raise)
Instead i suggest they cut their dividends, make their shareholders pay, then the executives will have some accountability.
Ruining a few extra thousand lives with an extra .25% point rise to preserve bank profits and shareholder returns are not on.
The greed of bankers will in the end be the cause of any downturn in any of the world economies.