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Law Capping interest rates
Rank: Member Joined: 12/1/2007 Posts: 539 Location: Nakuru
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Kausha wrote:Last 8 years debt growing more than GDP growth. Previous 6yrs it was the opposite. Have we been procuring growth with borrowed money? At an individual level, how do you shield yourself from this? Considering the investment environment is at its riskiest; interest rate capping is making fixed securities unattractive; forex is also on a tight rope... What is one left to do? For investors as a whole, returns decrease as motion increases ~ WB
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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winmak wrote:Kausha wrote:Last 8 years debt growing more than GDP growth. Previous 6yrs it was the opposite. Have we been procuring growth with borrowed money? At an individual level, how do you shield yourself from this? Considering the investment environment is at its riskiest; interest rate capping is making fixed securities unattractive; forex is also on a tight rope... What is one left to do? I dont get this thing of fixed income being unattractive...kindly explain.. possunt quia posse videntur
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Rank: Member Joined: 12/1/2007 Posts: 539 Location: Nakuru
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maka wrote:winmak wrote:Kausha wrote:Last 8 years debt growing more than GDP growth. Previous 6yrs it was the opposite. Have we been procuring growth with borrowed money? At an individual level, how do you shield yourself from this? Considering the investment environment is at its riskiest; interest rate capping is making fixed securities unattractive; forex is also on a tight rope... What is one left to do? I dont get this thing of fixed income being unattractive...kindly explain.. I said fixed to mean TBills and bonds, fixed deposits... All offering low yields... sub 10% For investors as a whole, returns decrease as motion increases ~ WB
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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winmak wrote:maka wrote:winmak wrote:Kausha wrote:Last 8 years debt growing more than GDP growth. Previous 6yrs it was the opposite. Have we been procuring growth with borrowed money? At an individual level, how do you shield yourself from this? Considering the investment environment is at its riskiest; interest rate capping is making fixed securities unattractive; forex is also on a tight rope... What is one left to do? I dont get this thing of fixed income being unattractive...kindly explain.. I said fixed to mean TBills and bonds, fixed deposits... All offering low yields... sub 10% Tbills not Bonds.... possunt quia posse videntur
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada
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maka wrote:winmak wrote:maka wrote:winmak wrote:Kausha wrote:Last 8 years debt growing more than GDP growth. Previous 6yrs it was the opposite. Have we been procuring growth with borrowed money? At an individual level, how do you shield yourself from this? Considering the investment environment is at its riskiest; interest rate capping is making fixed securities unattractive; forex is also on a tight rope... What is one left to do? I dont get this thing of fixed income being unattractive...kindly explain.. I said fixed to mean TBills and bonds, fixed deposits... All offering low yields... sub 10% Tbills not Bonds.... She could be true. If you are a @wanjiku like him and put your 10,000 in a 15 year Bond then she better buy gunia mbili za njugu karanga and sell by the roadside. Bonds are for wazito...guys like @Ben Gethi,@Y-goro and I...people who could plant 100 Mio in a 15 year paper and earn free Kes. 1,000,000 per month for 15 years!!!!!!!! Portfolio: Sold You know you've made it when you get a parking space for your yatcht.
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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Impunity wrote:maka wrote:winmak wrote:maka wrote:winmak wrote:Kausha wrote:Last 8 years debt growing more than GDP growth. Previous 6yrs it was the opposite. Have we been procuring growth with borrowed money? At an individual level, how do you shield yourself from this? Considering the investment environment is at its riskiest; interest rate capping is making fixed securities unattractive; forex is also on a tight rope... What is one left to do? I dont get this thing of fixed income being unattractive...kindly explain.. I said fixed to mean TBills and bonds, fixed deposits... All offering low yields... sub 10% Tbills not Bonds.... She could be true. If you are a @wanjiku like him and put your 10,000 in a 15 year Bond then she better buy gunia mbili za njugu karanga and sell by the roadside. Bonds are for wazito... guys like @Ben Gethi,@Y-goro and I...people who could plant 100 Mio in a 15 year paper and earn free Kes. 1,000,000 per month for 15 years!!!!!!!! Wazito kama wewe!!!! Yet a potential gain of 10K is keeping you excited and making you sleepless! Quote:Portfolio: KQ 6,200 You know you've made it when you get a parking space for your yatcht. If Obiero did it, Who Am I?
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Rank: Elder Joined: 7/22/2009 Posts: 7,910
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maka wrote:http://kenyanwallstreet.com/imf-says-rate-cap-bill-will-adversely-affect-kenyas-economy Quote:However, the IMF team was concerned that the recent amendments to the Banking Act that set limits on deposit and lending rates are likely to have an adverse impact on Kenya’s economy. From their experience in other markets, such interest rate controls have been ineffective and gave rise to unintended negative consequences including reduced access to financing for the SMEs and an increase in informal lending at much higher interest rates.
“Interest rate limits could also reverse the remarkable increase in financial inclusion that has benefited a large proportion of Kenya’s population. These adverse effects could lead to lower economic growth and undermine efforts to reduce poverty. In addition, interest rates limits undermine the effectiveness of monetary policy aimed at ensuring price stability and supporting sustainable economic growth.” noted the IMF team.
I will not add anything lest I rattle some fellows who make up for the lack of knowledge with raw emotions!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 3/19/2010 Posts: 3,505 Location: Uganda
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In my lack of knowledge raw emotions reaction, I got an increase in my 2 safaricom mshwari lines, KCB Mpesa limit Barclays is always calling me to extend a loan to me, what does this mean for those with greater knowledge in regards to rates capping? In the words of Michael Joseph, Kenyan market is peculiar, mpesa failed in south Africa but it's a cash cow in Kenya, if rates capping failed elsewhere, it may not necessarily fail in Kenya, Our biggest failure is corruption, not rate capping punda amecheka
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Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada
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Swenani wrote:Impunity wrote:maka wrote:winmak wrote:maka wrote:winmak wrote:Kausha wrote:Last 8 years debt growing more than GDP growth. Previous 6yrs it was the opposite. Have we been procuring growth with borrowed money? At an individual level, how do you shield yourself from this? Considering the investment environment is at its riskiest; interest rate capping is making fixed securities unattractive; forex is also on a tight rope... What is one left to do? I dont get this thing of fixed income being unattractive...kindly explain.. I said fixed to mean TBills and bonds, fixed deposits... All offering low yields... sub 10% Tbills not Bonds.... She could be true. If you are a @wanjiku like him and put your 10,000 in a 15 year Bond then she better buy gunia mbili za njugu karanga and sell by the roadside. Bonds are for wazito... guys like @Ben Gethi,@Y-goro and I...people who could plant 100 Mio in a 15 year paper and earn free Kes. 1,000,000 per month for 15 years!!!!!!!! Wazito kama wewe!!!! Yet a potential gain of 10K is keeping you excited and making you sleepless! Quote:Portfolio: KQ 6,200 You know you've made it when you get a parking space for your yatcht. You dont air balls on the rock by the riverside to dry them...that 6,200 could anything divided by 100s or 1000s. Kepp laughing mate! Portfolio: Sold You know you've made it when you get a parking space for your yatcht.
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