Banking System Reform (Separation of Banks) Bill 2018
Link to bill & explanation documents
This bill introduced by Sen. Bob Katter is to; re-establish confidence in the banking system, to separate retail commercial banking activities involving the holding of deposits from wholesale and investment banking involving risky activities and for other purposes.
the great upheavals in the Western democracies, the so-called free economies, which are really mixed economies occurred one of the greatest, being the Great Depression of 1929.
After the Great Depression, the issue was addressed by the Congress of the United States by implementing the glas-steagall Act of 1933.
The Glass-Steagall came in and it overcame it the vast bulk of those problems so that the American economy ran fairly effectively to make it 2, 3, 4 and 5 times the size of any other economy on earth, until Bill Clinton repealed the act in 1999 and put the USA on the path (you know the path paved with good intentions) for economic disaster.
After the end of the Glas-Steagall Act within two years the dot-com occurred; taking down trillions of dollars of savings and superannuation and retirement monies of Americans and the rest of the world, then in 2008 we're all familiar with the GFC, Indicating the necessity for glass-steagall legislation.
Recourse Lending
A type of loan that allows a lender to seek financial damages if the borrower fails to pay the liability, and if the value of the underlying asset is not enough to cover it. A recourse loan allows the lender to go after the debtor's assets that were not used as loan collateral in case of default.
-Investopedia-
If you can't make the house repayments, then the house is taken off you and sold out from under you below the list value, so the bank has the debt and you become a wage slave for the rest of your life. You carry that debt and that debt accumulates interest for the rest of your life, unless you accept bankruptcy. So essentially you are participating in a game with the banks, whereby the bank sets the rules (subject to changes at their discretion) and should you lose, you do not pass go.
Summary of the Bills Goals
Bills like this are instrumental in preventing predatory lending practices, and curbing excessive spending, not only of companies and those wealthy individuals, but also of the average Australians who are heavily leveraged.
It seems to me that we are all to happy to pass bills regarding hate speech, government endorsed compelled speech, restriction on internet usage, marriage bills and the like. I am amazed that a bill that would really benefit and protect people has not got more light in the media.
LB