Did you hear that parliment intends to regulate the profit spreads for banks. The banks are currently making 12 shillings interest from every 100 shillings you deposit. This is on top of the CBR rate of 18%.
Banks are thus very angry, like a scorned wife, when parliament proposes to cut that cheese down to size and also force the same banks to give you something decent for your deposits in banks.
The banks thus are hooding the cash to starve the government of cash it raises through bonds and bills until the government behaves.
If you have the cash now, you are king. This are the times when I and others claim the cash to be king if you know how to make better use of it.
Am searching for...got it.
From Buisness daily.
Barely four months after having to cope with a sudden surge in interest rates, the banking sector will open 2012 with the dark cloud of looming lending rate controls hanging over its head.
Parliament, in its last sitting on December 22, witnessed a heated debate that was sparked by Gem MP Jakoyo Midiwo’s proposal to limit the maximum lending rate to four percentage points above the Central Bank Rate (CBR).
If passed into law, the new rule would also force lenders to pay interest on savings of at least 70 per cent of the CBR.
Wisdom to detect when share prices hit rock bottom.
When interest on bonds keep going up, you know the bear run is on high street. When interest on bonds start leveling, the bear has met the bull and they have hit rock bottom. When the interest rates on bonds start coming down, the bull has overpowered the bear and you better be riding the bull.