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Law Capping interest rates
Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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josimar wrote:In developed economies such as Japan , mortgage rates are offered at 1% and tenor is 30 Years . That's untrue. And if it is, to mi and fellow wanjiku, its like preaching gospel to pharaoh. Eti 1% say per month and not per year. ,Behold, a sower went forth to sow;....
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Rank: Elder Joined: 6/23/2009 Posts: 13,552 Location: nairobi
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muandiwambeu wrote:josimar wrote:In developed economies such as Japan , mortgage rates are offered at 1% and tenor is 30 Years . That's untrue. And if it is, to mi and fellow wanjiku, its like preaching gospel to pharaoh. Eti 1% say per month and not per year. Hii ndio ubaya ya kuishi Maragua au Yala and not being interested in global finance.. Its a fact that rates in Asia and Europe are at about 2 to 3 percent per annum with countries such as Japan having negative interest on borrowing! https://mobile.nytimes.c...tive-interest-rates.html
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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obiero wrote:muandiwambeu wrote:[quote=josimar]In developed economies such as Japan , mortgage rates are offered at 1% and tenor is 30 Years . That's untrue. And if it is, to mi and fellow wanjiku, its like preaching gospel to pharaoh. Eti 1% say per month and not per year. Hii ndio ubaya ya kuishi Maragua au Yala and not being interested in global finance.. Its a fact that rates in Asia and Europe are at about 2 to 3 percent per annum with countries such as Japan having negative interest on borrowing! https://mobile.nytimes.c...ive-interest-rates.html[/quote] Yawa my lord. I said this person known as @obiero is a smart chap, but now look. Interest rates can be any numeral, but to a Kenyan, your figures would cause a bank run. Would cause small banks to be in for it. Does that make sense? It will kill the credit in this mugai's nation. It will leave your stocks seriously beaten. Maragua people are very good potters and they know places. ,Behold, a sower went forth to sow;....
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Rank: Elder Joined: 6/23/2009 Posts: 13,552 Location: nairobi
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muandiwambeu wrote:obiero wrote:muandiwambeu wrote:[quote=josimar]In developed economies such as Japan , mortgage rates are offered at 1% and tenor is 30 Years . That's untrue. And if it is, to mi and fellow wanjiku, its like preaching gospel to pharaoh. Eti 1% say per month and not per year. Hii ndio ubaya ya kuishi Maragua au Yala and not being interested in global finance.. Its a fact that rates in Asia and Europe are at about 2 to 3 percent per annum with countries such as Japan having negative interest on borrowing! https://mobile.nytimes.c...ive-interest-rates.html[/quote] Yawa my lord. I said this person known as @obiero is a smart chap, but now look. Interest rates can be any numeral, but to a Kenyan, your figures would cause a bank run. Would cause small banks to be in for it. Does that make sense? It will kill the credit in this mugai's nation. It will leave your stocks seriously beaten. Maragua people are very good potters and they know places. Graham, Buffer's mentor did the study and found that no correlation exists between bank rates and the stock market.. The only positive correlation even applicable to Kenya is between the bills market and the exchange i.e higher Tbills, lower exchange prices and the inverse is true
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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obiero wrote:muandiwambeu wrote:[quote=josimar]In developed economies such as Japan , mortgage rates are offered at 1% and tenor is 30 Years . That's untrue. And if it is, to mi and fellow wanjiku, its like preaching gospel to pharaoh. Eti 1% say per month and not per year. Hii ndio ubaya ya kuishi Maragua au Yala and not being interested in global finance.. Its a fact that rates in Asia and Europe are at about 2 to 3 percent per annum with countries such as Japan having n egative interest on borrowing! https://mobile.nytimes.c...ive-interest-rates.html[/quote] Do you understand the meaning of negative interest rates and why it's used? FYI it doesn't apply to borrowings but deposits and it's mainly used by central/federal banks to force banks to lend If Obiero did it, Who Am I?
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Rank: Elder Joined: 6/23/2009 Posts: 13,552 Location: nairobi
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Swenani wrote:obiero wrote:muandiwambeu wrote:[quote=josimar]In developed economies such as Japan , mortgage rates are offered at 1% and tenor is 30 Years . That's untrue. And if it is, to mi and fellow wanjiku, its like preaching gospel to pharaoh. Eti 1% say per month and not per year. Hii ndio ubaya ya kuishi Maragua au Yala and not being interested in global finance.. Its a fact that rates in Asia and Europe are at about 2 to 3 percent per annum with countries such as Japan having n egative interest on borrowing! https://mobile.nytimes.c...ive-interest-rates.html[/quote] Do you understand the meaning of negative interest rates and why it's used? FYI it doesn't apply to borrowings but deposits and it's mainly used by central/federal banks to force banks to lend @swenyani let me take you to school http://www.investopedia....-interest-rates-work.asp
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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obiero wrote:Swenani wrote:obiero wrote:[quote=muandiwambeu][quote=josimar]In developed economies such as Japan , mortgage rates are offered at 1% and tenor is 30 Years . That's untrue. And if it is, to mi and fellow wanjiku, its like preaching gospel to pharaoh. Eti 1% say per month and not per year. Hii ndio ubaya ya kuishi Maragua au Yala and not being interested in global finance.. Its a fact that rates in Asia and Europe are at about 2 to 3 percent per annum with countries such as Japan having n egative interest on borrowing! https://mobile.nytimes.c...ive-interest-rates.html[/quote] Do you understand the meaning of negative interest rates and why it's used? FYI it doesn't apply to borrowings but deposits and it's mainly used by central/federal banks to force banks to lend @swe nyani let me take you to school http://www.investopedia....interest-rates-work.asp[/quote] Asante sana Quote:Negative interest rates are an unconventional monetary policy tool first deployed by Sweden's central bank in July 2009, when it cut its overnight deposit rate to -0.25%. The European Central Bank (ECB) followed in June 2014, when it lowered its deposit rate to -0.1%. Other European countries and Japan have joined the negative-rate club, resulting in $10 trillion worth of government debt carrying negative yields, according to Fitch It only applies to deposit. Soma uelewe sio kumaliza. From my limited understanding, negative interest rates apply when banks are not willing to lend to wanjikus and prefer "hoarding" or parking the money with central bank. The central bank then punishes them by charging the commercial banks(not wanjiku's) a negative interest rate on their deposits in order to encourage commercial banks to lend to wanjiku's like you but not at a negative interest rate ofcourse. Investopedia is not an authority on such matters though! If Obiero did it, Who Am I?
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Rank: Elder Joined: 6/23/2009 Posts: 13,552 Location: nairobi
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Swenani wrote:obiero wrote:Swenani wrote:obiero wrote:[quote=muandiwambeu][quote=josimar]In developed economies such as Japan , mortgage rates are offered at 1% and tenor is 30 Years . That's untrue. And if it is, to mi and fellow wanjiku, its like preaching gospel to pharaoh. Eti 1% say per month and not per year. Hii ndio ubaya ya kuishi Maragua au Yala and not being interested in global finance.. Its a fact that rates in Asia and Europe are at about 2 to 3 percent per annum with countries such as Japan having n egative interest on borrowing! https://mobile.nytimes.c...ive-interest-rates.html[/quote] Do you understand the meaning of negative interest rates and why it's used? FYI it doesn't apply to borrowings but deposits and it's mainly used by central/federal banks to force banks to lend @swe nyani let me take you to school http://www.investopedia....interest-rates-work.asp[/quote] Asante sana Quote:Negative interest rates are an unconventional monetary policy tool first deployed by Sweden's central bank in July 2009, when it cut its overnight deposit rate to -0.25%. The European Central Bank (ECB) followed in June 2014, when it lowered its deposit rate to -0.1%. Other European countries and Japan have joined the negative-rate club, resulting in $10 trillion worth of government debt carrying negative yields, according to Fitch It only applies to deposit. Soma uelewe sio kumaliza. From my limited understanding, negative interest rates apply when banks are not willing to lend to wanjikus and prefer "hoarding" or parking the money with central bank. The central bank then punishes them by charging the commercial banks(not wanjiku's) a negative interest rate on their deposits in order to encourage commercial banks to lend to wanjiku's like you but not at a negative interest rate ofcourse. Investopedia is not an authority on such matters though! New concepts are sometimes hard to comprehend.. We will take it slowly http://www.bbc.co.uk/news/business-32284393
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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obiero wrote:muandiwambeu wrote:obiero wrote:muandiwambeu wrote:[quote=josimar]In developed economies such as Japan , mortgage rates are offered at 1% and tenor is 30 Years . That's untrue. And if it is, to mi and fellow wanjiku, its like preaching gospel to pharaoh. Eti 1% say per month and not per year. Hii ndio ubaya ya kuishi Maragua au Yala and not being interested in global finance.. Its a fact that rates in Asia and Europe are at about 2 to 3 percent per annum with countries such as Japan having negative interest on borrowing! https://mobile.nytimes.c...ive-interest-rates.html[/quote] Yawa my lord. I said this person known as @obiero is a smart chap, but now look. Interest rates can be any numeral, but to a Kenyan, your figures would cause a bank run. Would cause small banks to be in for it. Does that make sense? It will kill the credit in this mugai's nation. It will leave your stocks seriously beaten. Maragua people are very good potters and they know places. Graham, Buffer's mentor did the study and found that no correlation exists between bank rates and the stock market.. The only positive correlation even applicable to Kenya is between the bills market and the exchange i.e higher Tbills, lower exchange prices and the inverse is true Wachana na graham, masomo yake ni ya kale. Let's look around here at home, pre-interest caps equity was trading at forties. Post caps, lower interest rates now trades at twenties. Lakini nitakupea assignment ya Leo jioni. Examine the impact of interest rates capping on kenya's top ten banks pre and post caps and give explanation to you observation. (Minimum ten pages) 1mark. ,Behold, a sower went forth to sow;....
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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obiero wrote:Swenani wrote:obiero wrote:Swenani wrote:[quote=obiero][quote=muandiwambeu][quote=josimar]In developed economies such as Japan , mortgage rates are offered at 1% and tenor is 30 Years . That's untrue. And if it is, to mi and fellow wanjiku, its like preaching gospel to pharaoh. Eti 1% say per month and not per year. Hii ndio ubaya ya kuishi Maragua au Yala and not being interested in global finance.. Its a fact that rates in Asia and Europe are at about 2 to 3 percent per annum with countries such as Japan having n egative interest on borrowing! https://mobile.nytimes.c...ive-interest-rates.html[/quote] Do you understand the meaning of negative interest rates and why it's used? FYI it doesn't apply to borrowings but deposits and it's mainly used by central/federal banks to force banks to lend @swe nyani let me take you to school http://www.investopedia....interest-rates-work.asp[/quote] Asante sana Quote:Negative interest rates are an unconventional monetary policy tool first deployed by Sweden's central bank in July 2009, when it cut its overnight deposit rate to -0.25%. The European Central Bank (ECB) followed in June 2014, when it lowered its deposit rate to -0.1%. Other European countries and Japan have joined the negative-rate club, resulting in $10 trillion worth of government debt carrying negative yields, according to Fitch It only applies to deposit. Soma uelewe sio kumaliza. From my limited understanding, negative interest rates apply when banks are not willing to lend to wanjikus and prefer "hoarding" or parking the money with central bank. The central bank then punishes them by charging the commercial banks(not wanjiku's) a negative interest rate on their deposits in order to encourage commercial banks to lend to wanjiku's like you but not at a negative interest rate ofcourse. Investopedia is not an authority on such matters though! New concepts are sometimes hard to comprehend.. We will take it slowly http://www.bbc.co.uk/news/business-32284393[/quote] I asked you to read to understand the articles you are posting not to finish reading them. These articles are basically saying the same thing I'm telling you. Quote:Perhaps the first thing worth stating is that negative interest rates are probably not coming to a High Street near you in the near future As you can see, it doesn't apply to a wanjiku even in EU Quote:One point worth spelling out is that we are not talking about negative real interest rates. That is where you have an interest rate that may be above zero but it is lower than inflation. That means that a borrower's total repayments have less purchasing power than the amount they first borrowed. I hope this is not what you are referring to Quote:That is not so unusual. As long as there is at least moderate inflation, central banks can get real rates below zero to stimulate economic recovery and there have been many episodes of that.
No. We are talking here about what economists call nominal interest rates below zero, making no allowance for rising (or falling) prices.
The reason it is so strange is this: normally a potential lender can choose not to lend and just sit on the funds. That is equivalent to getting a nominal interest rate of zero. Not great, but surely better than an interest rate of less than zero. That is the basic idea behind the concept of the zero lower bound. Lenders refusing to lend to a wanjiku thus central bans introduced negative interest rates on commercial banks deposits held by central bank to force them to move money out and lender to wanjiku to stimulate economic recovery/growth Quote:Some examples are central bank policies. In the eurozone, in Denmark, Sweden, Switzerland and Japan, central banks have decided to have a negative rate on commercial banks' excess funds held on deposit at the central bank. In effect, private sector banks have to pay to park their money As you can see, the central banks are charging commercial banks a rate on deposit held with central banks aka negative interest rates on commercial banks deposits. So as-refer to above paragraphs -stimulate economic recovery...by encouraging banks to lend to wanjiku instead of hoarding the money with central banks Quote:Some examples are central bank policies. In the eurozone, in Denmark, Sweden, Switzerland and Japan, central banks have decided to have a negative rate on commercial banks' excess funds held on deposit at the central bank. In effect, private sector banks have to pay to park their money Quote:Low interest rates are of course unwelcome news to savers. Negative central bank rates have started to lead to some bank customers being charged a negative rate on their accounts, mainly businesses with large balances Rationale is the same, the primary objective is to stimulate economic growth because a rational investor would prefer his money to be invested in other sectors of the economy than to be deducted charges on his deposits. Now give me a link where borrowers(wanjiku's) have borrowed money and the banks keep on paying them an interest every month or year If Obiero did it, Who Am I?
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Rank: Elder Joined: 6/23/2009 Posts: 13,552 Location: nairobi
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muandiwambeu wrote:obiero wrote:muandiwambeu wrote:obiero wrote:muandiwambeu wrote:[quote=josimar]In developed economies such as Japan , mortgage rates are offered at 1% and tenor is 30 Years . That's untrue. And if it is, to mi and fellow wanjiku, its like preaching gospel to pharaoh. Eti 1% say per month and not per year. Hii ndio ubaya ya kuishi Maragua au Yala and not being interested in global finance.. Its a fact that rates in Asia and Europe are at about 2 to 3 percent per annum with countries such as Japan having negative interest on borrowing! https://mobile.nytimes.c...ive-interest-rates.html[/quote] Yawa my lord. I said this person known as @obiero is a smart chap, but now look. Interest rates can be any numeral, but to a Kenyan, your figures would cause a bank run. Would cause small banks to be in for it. Does that make sense? It will kill the credit in this mugai's nation. It will leave your stocks seriously beaten. Maragua people are very good potters and they know places. Graham, Buffer's mentor did the study and found that no correlation exists between bank rates and the stock market.. The only positive correlation even applicable to Kenya is between the bills market and the exchange i.e higher Tbills, lower exchange prices and the inverse is true Wachana na graham, masomo yake ni ya kale. Let's look around here at home, pre-interest caps equity was trading at forties. Post caps, lower interest rates now trades at twenties. Lakini nitakupea assignment ya Leo jioni. Examine the impact of interest rates capping on kenya's top ten banks pre and post caps and give explanation to you observation. (Minimum ten pages) 1mark. The current economic situation in Kenya is completely complex with billions being stashed in gunny bags by a corrupted lot
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 7/22/2009 Posts: 7,460
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muandiwambeu wrote:josimar wrote:In developed economies such as Japan , mortgage rates are offered at 1% and tenor is 30 Years . That's untrue. And if it is, to mi and fellow wanjiku, its like preaching gospel to pharaoh. Eti 1% say per month and not per year. 1% is given to the top 1% in society. The likes of Zuckerberg and crew! Even Obama's mortgage is/was at 4.xy% Mortgage rates for Zuckerberg and the ultra rich!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: 7/22/2009 Posts: 7,460
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obiero wrote:muandiwambeu wrote:josimar wrote:In developed economies such as Japan , mortgage rates are offered at 1% and tenor is 30 Years . That's untrue. And if it is, to mi and fellow wanjiku, its like preaching gospel to pharaoh. Eti 1% say per month and not per year. Hii ndio ubaya ya kuishi Maragua au Yala and not being interested in global finance.. Its a fact that rates in Asia and Europe are at about 2 to 3 percent per annum with countries such as Japan having negative interest on borrowing! https://mobile.nytimes.c...ive-interest-rates.html ^ Not true @Obiero!!! Negative interest rates are charged to banks by Central Banks not Banks to clients!!! The Central Bank charges banks an intrest when the bank keeps money at the Central Bank instead of paying the Bank interest. This discourages banks from holding cash (as opposed to lending). Kindly post a link showing a bank ANYWHERE IN THE WORLD giving loans to clients and charging negative interest rates!!! 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: 7/22/2009 Posts: 7,460
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@Obiero must be currently residing in "Maragua or Yala"! 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: Veteran Joined: 10/29/2008 Posts: 1,566
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Even good old common sense should tell us that its not possible that one can borrow money and then pay less than what they borrowed! End of discussion. Separately, an interest rate of 1% per annum with a 30 year tenor would mean - there shouldnt be any tenants, just take that house on mortgage and pay installments that are virtually equal to what rent would cost you. Isuni yilu yi maa me muyo - ni Mbisuu
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Rank: Veteran Joined: 3/26/2012 Posts: 985 Location: Dar es salaam,Tanzania
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MaichBlack wrote:obiero wrote:muandiwambeu wrote:josimar wrote:In developed economies such as Japan , mortgage rates are offered at 1% and tenor is 30 Years . That's untrue. And if it is, to mi and fellow wanjiku, its like preaching gospel to pharaoh. Eti 1% say per month and not per year. Hii ndio ubaya ya kuishi Maragua au Yala and not being interested in global finance.. Its a fact that rates in Asia and Europe are at about 2 to 3 percent per annum with countries such as Japan having negative interest on borrowing! https://mobile.nytimes.c...ive-interest-rates.html ^ Not true @Obiero!!! Negative interest rates are charged to banks by Central Banks not Banks to clients!!! The Central Bank charges banks an intrest when the bank keeps money at the Central Bank instead of paying the Bank interest. This discourages banks from holding cash (as opposed to lending). Kindly post a link show a bank ANYWHERE IN THE WORLD giving loans to clients and charging negative interest rates!!! He he he..Someone wants to insinuate that a bank will be paying you monthly for taking a loan with them..Interesting
“The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.”
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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MaichBlack wrote:obiero wrote:muandiwambeu wrote:josimar wrote:In developed economies such as Japan , mortgage rates are offered at 1% and tenor is 30 Years . That's untrue. And if it is, to mi and fellow wanjiku, its like preaching gospel to pharaoh. Eti 1% say per month and not per year. Hii ndio ubaya ya kuishi Maragua au Yala and not being interested in global finance.. Its a fact that rates in Asia and Europe are at about 2 to 3 percent per annum with countries such as Japan having negative interest on borrowing! https://mobile.nytimes.c...ive-interest-rates.html ^ Not true @Obiero!!! Negative interest rates are charged to banks by Central Banks not Banks to clients!!! The Central Bank charges banks an intrest when the bank keeps money at the Central Bank instead of paying the Bank interest. This discourages banks from holding cash (as opposed to lending). Kindly post a link show a bank ANYWHERE IN THE WORLD giving loans to clients and charging negative interest rates!!! Swiss alternative bank breaks negative rates taboo
German Bank Hits Rich Clients with Negative Interest Rates
Julius Baer splits negative rates between bank, clients and advisers
Danish bank charges ordinary customers for deposits as negative interest rates bite
RBS starts charging financial customers to park their cash
This is why I expect the euro to crash below parity vs USD unless they stop this negative interest rate policy lunacy!!!
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 6/23/2009 Posts: 13,552 Location: nairobi
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Wazua should pay me for the traffic I generate.. lol
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 6/23/2009 Posts: 13,552 Location: nairobi
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Wazua should pay me for the traffic I generate.. lol
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 7/22/2009 Posts: 7,460
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This is not different from what we are saying. In each of those links customers are being charged for DEPOSITS in the Bank!. Instead of being paid interest for their deposits, they are charged. And that is exactly what used to happen in Kenya (only that it was given other names like ledger fees, account maintenance fee bla bla bla). You could leave 30k for example in an account go to Kandahar and when you come back you find your new balance is 20k. What we are telling @Obiero, no bank anywhere in the world will give him a loan of x and expect him to pay less than x (a negative interest rate on the loan). And one wazuan has made this very easy on everyone and referred him to something called common sense. Surely, why would any bank want to give you 1,000,000/= and you pay back 900,000/= over a period of time while they take on the burden of processing, follow up, logistics etc. and bear all the risk of default!!?? 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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