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Angelica _ann		#731 Posted : Friday, August 26, 2016 11:34:23 AM
Rank: Elder Joined: 12/7/2012 Posts: 11,935		MaichBlack wrote: President Uhuru has been a big disappointment on this one. He turned down the advice of Treasury and Central Bank for political reasons. He promised people lower interest rates in the last campaign and he is going to face them again. He knows this law is f#ked up (he was briefed by his technocrats) but he had politics/re-election to think about!! Central Bank as so pissed off they said they will not comment on the signing of the bill. Finance Secretary also refused to comment and referred questions to the Attorney General. Who are these other people who advised him to an extent of disregarding the advice of Treasury and CBK??? A president who is willing to mess the whole financial ecosystem to get re-elected is a big no for me! But this has guaranteed his re-election!!!! Politics and politicians, it is all about survival In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later* - H Geneen
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MaichBlack		#732 Posted : Friday, August 26, 2016 11:35:21 AM
Rank: Elder Joined: 7/22/2009 Posts: 7,872		KNM wrote: Oh forgot. The equilibrium? Expensive accounts, worse unemployment, increase in cost of goods and services. Yay interest caps! Now if only they could give me that loan I buy (insert whatever here)... I know! Let's force them to by law! Coz if we dug oursleves into this hole, we can get out by digging some more. The law will be reversed whenever - like it was done before - but unfortunately for Uhuru, he will have to go through parliament unlike Jacob Zuma's choice of Finance minister that spooked the market and he reversed the appointment ASAP! 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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MaichBlack		#733 Posted : Friday, August 26, 2016 11:42:34 AM
Rank: Elder Joined: 7/22/2009 Posts: 7,872		Angelica _ann wrote: MaichBlack wrote: President Uhuru has been a big disappointment on this one. He turned down the advice of Treasury and Central Bank for political reasons. He promised people lower interest rates in the last campaign and he is going to face them again. He knows this law is f#ked up (he was briefed by his technocrats) but he had politics/re-election to think about!! Central Bank as so pissed off they said they will not comment on the signing of the bill. Finance Secretary also refused to comment and referred questions to the Attorney General. Who are these other people who advised him to an extent of disregarding the advice of Treasury and CBK??? A president who is willing to mess the whole financial ecosystem to get re-elected is a big no for me*! But this has guaranteed his re-election!!!! Politics and politicians, it is all about survival I doubt this will help him. I doubt Cordishians will vote for him just because he signed the bill. His die hard supporters would still have voted for him either way. He has actually lost the votes of some people. Unfortunately for some and fortunately for others as @guru says, he will still be re-elected either way. 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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ecstacy		#734 Posted : Friday, August 26, 2016 11:45:11 AM
Rank: Elder Joined: 2/26/2008 Posts: 4,449		The banks were betting Uhuru would follow the text book advise which has taken the country nowhere in the last 3 attempts to address this issue. What are the anti-bill proponents proposing exactly?
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streetwise		#735 Posted : Friday, August 26, 2016 11:48:46 AM
Rank: Veteran Joined: 6/23/2011 Posts: 1,740 Location: Nairobi		A leader needs courage and UK has shown he has .
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KNM		#736 Posted : Friday, August 26, 2016 11:56:21 AM
Rank: Member Joined: 10/28/2008 Posts: 41		ecstacy wrote: The banks were betting Uhuru would follow the text book advise which has taken the country nowhere in the last 3 attempts to address this issue. What are the anti-bill proponents proposing exactly? VituVingiSana wrote: moneydust wrote: wukan wrote: Uhuru and his economic advisers grossly underestimated portfolio forex inflows. Waiting for the carnage to extend to the forex markets Clearly he chose populism instead of sense.By rolling the countrys' tradition of free market policies he has ignited a carnage that will be felt far and wide in the countrys' economy.He will now know what it means to be in a global market. Cant wait for the fire to filter to the currency market,shillingi yetu RIP The solution(s) is for GoK to: 1) Stop borrowing at high rates for projects. Rationalize the projects being funded using taxpayer funds eg NYS. 2) Stop borrowing to fund the recurrent expenditure eg commissions, cars, etc. 3) Rationalize the court system to defaulters are brought to book sooner. 4) Improve the collateralization system e.g. fake/duplicate Title Deeds, etc which makes it harder for GENUINE borrowers. 5) GoK should get out of the business of Business eg KQ, Uchumi, etc. All the other stuff is irrelevant as long as GoK spends money like it can be printed. Which it can. With inflationary results. How about that? NO. They want shortcuts. And they whip people into a frenzy. "Interest rates are high. Blame the banks!!" And it's working. Watch the reaction to this law. Schadenfreude (look it up). I will not rubbish greed as a factor in high rates. But mainly the high rates is a phenomenon. Pricing lack of efficiency due to the reasons outlined by VVS. The crowd will cheer your coronation as well as your beheading. People like a show, that's all.
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streetwise		#737 Posted : Friday, August 26, 2016 12:16:40 PM
Rank: Veteran Joined: 6/23/2011 Posts: 1,740 Location: Nairobi		We all agree the interest rates are pretty high and the banks make what I would call immoral profits. In the right environment those whose highest profits should be those who create value. When the bank takes money John1 and rents to John2 at 28 percent what value do they claim to have created
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KNM		#738 Posted : Friday, August 26, 2016 12:32:02 PM
Rank: Member Joined: 10/28/2008 Posts: 41		streetwise wrote: We all agree the interest rates are pretty high and the banks make what I would call immoral profits. In the right environment those whose highest profits should be those who create value. When the bank takes money John1 and rents to John2 at 28 percent what value do they claim to have created In the right environment. Your words. But surely would you call ours the right environment? Govt is binging on debt which is STOLEN anyway. This is the thing with our mentality. We don't comb through and see where we are being shafted. Case in point, fuel prices. For a long time we were shown that taxes were the main component of fuel price. But no. We put a cap. Last month hubris was exposed. Massive jump in prices. Why? Rise in tax. We are putting a noose on the wrong neck. REPEATEDLY. Government and its unsustainability is the problem. The crowd will cheer your coronation as well as your beheading. People like a show, that's all.
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KNM		#739 Posted : Friday, August 26, 2016 12:47:15 PM
Rank: Member Joined: 10/28/2008 Posts: 41		MaichBlack wrote: KNM wrote: Oh forgot. The equilibrium? Expensive accounts, worse unemployment, increase in cost of goods and services. Yay interest caps! Now if only they could give me that loan I buy (insert whatever here)... I know! Let's force them to by law! Coz if we dug oursleves into this hole, we can get out by digging some more. The law will be reversed whenever - like it was done before - but unfortunately for Uhuru, he will have to go through parliament unlike Jacob Zuma's choice of Finance minister that spooked the market and he reversed the appointment ASAP! I was of a similar opinion. Hii ni kuchekesha watu tu. The crowd will cheer your coronation as well as your beheading. People like a show, that's all.
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Nandwa		#740 Posted : Friday, August 26, 2016 12:49:10 PM
Rank: Veteran Joined: 11/17/2009 Posts: 1,049		streetwise wrote: We all agree the interest rates are pretty high and the banks make what I would call immoral profits. In the right environment those whose highest profits should be those who create value. When the bank takes money John1 and rents to John2 at 28 percent what value do they claim to have created Indeed we all do. Where we differ is the route to that destination - lower interest rates. About creating value or lack thereof; Think of the guy who works in Industrial area taunting the guy who works in the Hospital who matters most! Again the function of the Bank - giving the Money to John2 and bearing the disproportionate risk of either loosing it or getting engaged in endless hide and seek games or even in Courts, while still bearing full obligation to avail John1 his money back whenever he needs it, is a tricky situation. Just as absolute power corrupts leaders, so does absolute fanaticism blind the people from logic
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