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Law Capping interest rates
Rank: Elder Joined: 12/4/2009 Posts: 10,808 Location: NAIROBI
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omhangla wrote:Ruto alisema hakuna law itakuwa reviewed. they should forget. The govt should just reduce its appetite for domestic borrowing and these banks will have enough money to lend. In fact the law should be reviewed to ensure that all interest, cost of loan, insurance, etc dont add up to more than 14% You believe and follow what Ruto says. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 7/8/2013 Posts: 126
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I dont believe Ruto, but I also dont trust the banks. Kenyans will adjust. These banks have proved that they cannot operate in an environment of self regulation
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Rank: Elder Joined: 6/23/2009 Posts: 14,226 Location: nairobi
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winston wrote:Its amazing how government has ignored the voice of experts, International financial institutions, its own treasury mandarins, the real devastating effects across the banking system and the economy...is it possible that the only voice they will listen to is that of bandits? After all isnt this a 'bandit' economy? Dereva ni mlevi na makanga ni mwizi. Gari inakimbizwa na haina brakes. What do you expect
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Rank: Elder Joined: 7/23/2008 Posts: 3,017
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@Tomboy, you are mixing Macro and Micro economics, thats why everyone is laughing at you. Think of it like this; Micro - Individual, ego, expect 45million answers to any question in Kenya because there are 45 million of us. I can buy a plot, or a mitumba car, or nyama choma and beer etc. Its none of your business as its my choice. In real sense, money is not wasted because as I waste the money, another individual is making profits. End result, no loss to the economy beyond the BOP in the case of imports (But lets leave international trade for now). Infact, it leads to economic growth resulting from the velocity of money (how many times a shilling changes hands in 1 hour, minute, day, second etc) Macro - Govt, state,read policy, the hidden hand that influences the actions of individuals. This is the bit thats not working for us as a country and will not work as long as we have politicians as leaders. We can do very little as individuals to change the macro economic policy in the shortrun. In the long run the only weapon we have is our single vote. "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Rank: Member Joined: 4/14/2010 Posts: 806 Location: Nairobi
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obiero wrote:winston wrote:Its amazing how government has ignored the voice of experts, International financial institutions, its own treasury mandarins, the real devastating effects across the banking system and the economy...is it possible that the only voice they will listen to is that of bandits? After all isnt this a 'bandit' economy? Dereva ni mlevi na makanga ni mwizi. Gari inakimbizwa na haina brakes. What do you expect Wah!
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Rank: Member Joined: 10/6/2015 Posts: 249 Location: Nairobi
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winston wrote:obiero wrote:winston wrote:Its amazing how government has ignored the voice of experts, International financial institutions, its own treasury mandarins, the real devastating effects across the banking system and the economy...is it possible that the only voice they will listen to is that of bandits? After all isnt this a 'bandit' economy? Dereva ni mlevi na makanga ni mwizi. Gari inakimbizwa na haina brakes. What do you expect Wah! jesu  Never lose your position in a bull market,BTFD.
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Rank: Elder Joined: 3/29/2011 Posts: 2,242
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mamilli wrote:winston wrote:obiero wrote:winston wrote:Its amazing how government has ignored the voice of experts, International financial institutions, its own treasury mandarins, the real devastating effects across the banking system and the economy...is it possible that the only voice they will listen to is that of bandits? After all isnt this a 'bandit' economy? Dereva ni mlevi na makanga ni mwizi. Gari inakimbizwa na haina brakes. What do you expect Wah! jesu And passengers are scrambling to board the vehicle to the uncertain destination "Things that matter most must never be at the mercy of things that matter least." Goethe
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Rank: Elder Joined: 10/18/2008 Posts: 3,434 Location: Kerugoya
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Obi 1 Kanobi wrote:@Tomboy, you are mixing Macro and Micro economics, thats why everyone is laughing at you.
Think of it like this;
Micro - Individual, ego, expect 45million answers to any question in Kenya because there are 45 million of us. I can buy a plot, or a mitumba car, or nyama choma and beer etc. Its none of your business as its my choice. In real sense, money is not wasted because as I waste the money, another individual is making profits. End result, no loss to the economy beyond the BOP in the case of imports (But lets leave international trade for now). Infact, it leads to economic growth resulting from the velocity of money (how many times a shilling changes hands in 1 hour, minute, day, second etc)
Macro - Govt, state,read policy, the hidden hand that influences the actions of individuals. This is the bit thats not working for us as a country and will not work as long as we have politicians as leaders. We can do very little as individuals to change the macro economic policy in the shortrun. In the long run the only weapon we have is our single vote. sasa wewe unaleta kazi kwa mchezo. You could, at least, have waited until after the erections, when some form of sanity returns to the Republic of Kenia and the Virtual Republic of Wazua.
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Rank: Member Joined: 2/20/2007 Posts: 767
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Obi 1 Kanobi wrote:@Tomboy, you are mixing Macro and Micro economics, thats why everyone is laughing at you.
Think of it like this;
Micro - Individual, ego, expect 45million answers to any question in Kenya because there are 45 million of us. I can buy a plot, or a mitumba car, or nyama choma and beer etc. Its none of your business as its my choice. In real sense, money is not wasted because as I waste the money, another individual is making profits. End result, no loss to the economy beyond the BOP in the case of imports (But lets leave international trade for now). Infact, it leads to economic growth resulting from the velocity of money (how many times a shilling changes hands in 1 hour, minute, day, second etc)
Macro - Govt, state,read policy, the hidden hand that influences the actions of individuals. This is the bit thats not working for us as a country and will not work as long as we have politicians as leaders. We can do very little as individuals to change the macro economic policy in the shortrun. In the long run the only weapon we have is our single vote. Dear Obi, this is the other myth propagated by our dear ' western economists'. To even imagine that micro and macro economics are two seperate entities is to confirm that the books our ' western economists' are reading have succeeded in brainwashing our thinking and seriously impaired our ability to interprete written matter into reality. That division of micro and macro is purely for teaching purposes but in reality micro feeds into macro and vice versa. Picture the micro situation of individuals buying mitumba cars. Multiply this one guy x 1million ( hypothetical). Suddenly,the country needs several million dollars to buy mitumba cars, several million to buy spare parts, and fuel ( half of it wasted in traffic jam). Then we hear, oh, dollar demand has gone up. Shilling depreciating. No dollars to pay loans and buy fuel. Simplistic example but illustrates my point. Viceversa applies. Govt regulates micro economy by putting in place policies at macro economic level. The two cannot be seperated. They should actually be taught as a mixed bag. That is the reality. Keep laughing ' western economists' but its the truth. They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Veteran Joined: 11/13/2015 Posts: 1,654
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aemathenge wrote:wukan wrote:There is nothing new under the sun. These usury laws were used in US in the 1970's Come again? I missed your comment. You can read more from Alan Greenspan himself on why they had to de-regulate banking laws to avail credit to all income groups
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