The problem is that they have opened up a whole new can of worms, by extending the guarantee to non-bank deposit-takers.
It's probably the Aussies fault, but whatever, it's crazy. A finance company with less than 5 billion is now able to offer securities with the same level of risk as those offered by the banks, at a higher interest rate. And what do they have to pay for the privilege? Nothing.
So where will the money tend to go? From the banks to the finance companies.
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