Last week ASB parent borrowed

International dollar-denominated debt issuance was huge. Issuers included Hutchinson Whampoa $3.0bn, Commercial Bank of Australia $2.75bn, Spain $2.5bn, Svenska Handelsbanken $2.5bn, Iberdrola Ireland $2.0bn, Swedish Export Credit $1.5bn, Taqa Abu Dhabi $1.5bn, Tetroleos Mexica $1.5bn, Vale Overseas $1.0bn, and Petroplus $400 million.

week before,

International dollar debt issuers included Canada $3.0bn, Westpac Banking $5.3bn, and Country Garden $300 million.

????

The banks are finally listening to Bollard!

Does anyone know why the banks take so long to apply a rate cut to existing customers?

"effective for new customers on Tuesday and for existing customers on October 5."

Sorry,I think you will find they wish to get money out in the market to keep the party going. If they dont get it going they will be looking at billions of $ of losses in the housing market alone. It an illusion,bullshit the big 4 Aussie banks are facing massive losses in housing and will need more taxpayer assistance before this is over. The only answer they have is to borrow, create debt and peddle it to the innocent house buyer, its a bullshit game and the losers will be the taxpayer and the poor old holder of the mortgage. Eventually the banks will have to mark to market the loans and crash. This is why they are carrying the Crafar Family, option sell at auction collapse farm values to true value and banks have to write down billions of $ in bad loans. Its a game stacked in the banks favour and they still managed to stuff it up.

Wooopeee the stupid party is all on again...get the balloons and the toy thwistles...the paper hats ....cheap credit is flowing like honey and we can splurge us another residential property bubble of insanity and make dam sure this economic corpse remains in the morgue because by gum that's where our govt is determined to stuff it. To hell with encouraging savers. We have them in other countries and they can give us their savings for ever and ever at really cheap rates, right Bill English? So let's make it really crystal clear to those lenders, we don't give a rats rear end how much we waste on housing because you are so dumb you will keep giving us your money. You are stuffed. You will lose your investment. Ha ha.

It's not in the banks interest to get people 'hooked' and then 'ramp up' rates .. think about it.. The last thing banks want is for customers to start defaulting on loans. The OCR is at 2.5% so the banks have little option but to pass much of that on.