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98 Pages«<8485868788>»
Law Capping interest rates
ngapat
#1701 Posted : Tuesday, January 10, 2017 7:12:16 PM
Rank: Member


Joined: 12/11/2006
Posts: 718
Ericsson wrote:
ngapat wrote:
maka wrote:
@ngapat please let us know if they paid...this banks are crafty like @AA pointed out.

No payment yet. I had been receiving interests on my savings account every year since 2008 and I've not changed my account



Forced to transactional account that has no interest

Forced transactional account it is.
“Invest in yourself. Your career is the engine of your wealth.”
Angelica _ann
#1702 Posted : Tuesday, January 10, 2017 7:37:07 PM
Rank: Elder


Joined: 12/7/2012
Posts: 6,629
ngapat wrote:
Ericsson wrote:
ngapat wrote:
maka wrote:
@ngapat please let us know if they paid...this banks are crafty like @AA pointed out.

No payment yet. I had been receiving interests on my savings account every year since 2008 and I've not changed my account



Forced to transactional account that has no interest

Forced transactional account it is.

Pole smile
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
aemathenge
#1703 Posted : Tuesday, January 10, 2017 8:42:40 PM
Rank: Elder


Joined: 10/18/2008
Posts: 2,515
Location: Kerugoya
Razia Khan, The deeply respected Regional Head of Economics, Africa, at Standard Chartered Bank has this to say:

Rink:

Quote:
Populist policies have also played a role in weakening the performance of the financial sector.

In Kenya, the full impact of the adoption of loan rate caps and regulated loan-deposit spreads, introduced in 2016, will only be seen in 2017 or beyond.

Banks now face a maximum rate at which they are able to lend to clients.

Wherever loan rate caps have been introduced in the past, the effect has been the same.

If banks cannot price adequately for risk, they withdraw their lending, choosing to lend only to the safest and most established borrowers.

Small and medium enterprises as well as new start-ups with no established credit histories will likely face the brunt of this, meaning several growth and employment opportunities will be forgone somewhat needlessly.
obiero
#1704 Posted : Tuesday, January 10, 2017 8:48:48 PM
Rank: Elder


Joined: 6/23/2009
Posts: 5,619
Location: nairobi
aemathenge wrote:
Razia Khan, The deeply respected Regional Head of Economics, Africa, at Standard Chartered Bank has this to say:

Rink:

Quote:
Populist policies have also played a role in weakening the performance of the financial sector.

In Kenya, the full impact of the adoption of loan rate caps and regulated loan-deposit spreads, introduced in 2016, will only be seen in 2017 or beyond.

Banks now face a maximum rate at which they are able to lend to clients.

Wherever loan rate caps have been introduced in the past, the effect has been the same.

If banks cannot price adequately for risk, they withdraw their lending, choosing to lend only to the safest and most established borrowers.

Small and medium enterprises as well as new start-ups with no established credit histories will likely face the brunt of this, meaning several growth and employment opportunities will be forgone somewhat needlessly.

This was obvious to pedestrian observers including @spikes and @vvs
aemathenge
#1705 Posted : Tuesday, January 10, 2017 10:07:38 PM
Rank: Elder


Joined: 10/18/2008
Posts: 2,515
Location: Kerugoya
obiero wrote:
aemathenge wrote:
Razia Khan, The deeply respected Regional Head of Economics, Africa, at Standard Chartered Bank has this to say:

Rink:

Quote:
Populist policies have also played a role in weakening the performance of the financial sector.

In Kenya, the full impact of the adoption of loan rate caps and regulated loan-deposit spreads, introduced in 2016, will only be seen in 2017 or beyond.

Banks now face a maximum rate at which they are able to lend to clients.

Wherever loan rate caps have been introduced in the past, the effect has been the same.

If banks cannot price adequately for risk, they withdraw their lending, choosing to lend only to the safest and most established borrowers.

Small and medium enterprises as well as new start-ups with no established credit histories will likely face the brunt of this, meaning several growth and employment opportunities will be forgone somewhat needlessly.

This was obvious to pedestrian observers including @spikes and @vvs

But not to Kenia001
obiero
#1706 Posted : Tuesday, January 10, 2017 10:41:13 PM
Rank: Elder


Joined: 6/23/2009
Posts: 5,619
Location: nairobi
aemathenge wrote:
obiero wrote:
aemathenge wrote:
Razia Khan, The deeply respected Regional Head of Economics, Africa, at Standard Chartered Bank has this to say:

Rink:

Quote:
Populist policies have also played a role in weakening the performance of the financial sector.

In Kenya, the full impact of the adoption of loan rate caps and regulated loan-deposit spreads, introduced in 2016, will only be seen in 2017 or beyond.

Banks now face a maximum rate at which they are able to lend to clients.

Wherever loan rate caps have been introduced in the past, the effect has been the same.

If banks cannot price adequately for risk, they withdraw their lending, choosing to lend only to the safest and most established borrowers.

Small and medium enterprises as well as new start-ups with no established credit histories will likely face the brunt of this, meaning several growth and employment opportunities will be forgone somewhat needlessly.

This was obvious to pedestrian observers including @spikes and @vvs

But not to Kenia001

LOL
MaichBlack
#1707 Posted : Wednesday, January 11, 2017 8:45:50 AM
Rank: Elder


Joined: 7/22/2009
Posts: 7,109
obiero wrote:
aemathenge wrote:
Razia Khan, The deeply respected Regional Head of Economics, Africa, at Standard Chartered Bank has this to say:

Rink:

Quote:
Populist policies have also played a role in weakening the performance of the financial sector.

In Kenya, the full impact of the adoption of loan rate caps and regulated loan-deposit spreads, introduced in 2016, will only be seen in 2017 or beyond.

Banks now face a maximum rate at which they are able to lend to clients.

Wherever loan rate caps have been introduced in the past, the effect has been the same.

If banks cannot price adequately for risk, they withdraw their lending, choosing to lend only to the safest and most established borrowers.

Small and medium enterprises as well as new start-ups with no established credit histories will likely face the brunt of this, meaning several growth and employment opportunities will be forgone somewhat needlessly.

This was obvious to pedestrian observers including @spikes and @vvs

It was not @Obiero.

This has been one of the main arguments on this thread. We have been trying to tell people this will definitely happen but they have been saying never ever and even telling us their M-shwari maximum loans have been increased!

But may be now that the heat has hit the M-Shwari kitchen, they might finally see the light. But I am not holding my breath.
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
MaichBlack
#1708 Posted : Wednesday, January 11, 2017 8:52:05 AM
Rank: Elder


Joined: 7/22/2009
Posts: 7,109
Problem: President Uhuru will probably not reverse these before the election for obvious reasons and after the elections, we don't know who will be the president and whether he or she will have the tyranny of numbers in parliament.

The country might be screwed longer than we anticipate and for what??? Political reasons!!!
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
wukan
#1709 Posted : Wednesday, January 11, 2017 10:42:12 AM
Rank: Member


Joined: 11/13/2015
Posts: 242
MaichBlack wrote:
Problem: President Uhuru will probably not reverse these before the election for obvious reasons and after the elections, we don't know who will be the president and whether he or she will have the tyranny of numbers in parliament.

The country might be screwed longer than we anticipate and for what??? Political reasons!!!



Forget about the reversing of the rate caps, it received strong support even from CORD. The earliest you will see the lifting of the caps is around the year 2021. Uhuru will win the re-election even with massive voter apathy.

This is Zambia voter apathy with rate caps in 2015

Quote:
In her final remarks Electoral Commission of Zambia (ECZ) Chairperson, Justice Ireen Mambilima, said the average voter turnout in the recent presidential by-election was about 33 per cent. In some constituencies, out of about 33, 000 registered voters, one learns that only about 8, 000 registered voters actually voted. Justice Mambilima said this was the lowest voter turnout Zambia has ever experienced for many years.

While a winner in such high voter apathy political elections can celebrate having won a political election, it is clear that such a winner wins with a minority vote. Such a vote doesn’t give a winner confidence that one is a popular political representative in a given area. Such a situation threatens democracy dispensation as democracy promotes majority rule.


This is the voter turnout after lifting of the rate caps 2016

Quote:
Zambians have turned out in large numbers to vote in the general elections, observers say is the closest contest in the country’s history.

Most polling stations opened at 06:30 Hours and are expected to close at 18 Hours in the evening.

Some voters in the capital Lusaka made their way to the polling stations as early as 04 Hours.

Many observers have said the early turn out might cast doubts of voter apathy which has characterised the recent elections in Zambia.
Swenani
#1710 Posted : Wednesday, January 11, 2017 11:29:13 AM
Rank: User


Joined: 8/15/2013
Posts: 11,231
Location: Vacuum
wukan wrote:
MaichBlack wrote:
Problem: President Uhuru will probably not reverse these before the election for obvious reasons and after the elections, we don't know who will be the president and whether he or she will have the tyranny of numbers in parliament.

The country might be screwed longer than we anticipate and for what??? Political reasons!!!



Forget about the reversing of the rate caps, it received strong support even from CORD. The earliest you will see the lifting of the caps is around the year 2021. Uhuru will win the re-election even with massive voter apathy.

This is Zambia voter apathy with rate caps in 2015

Quote:
In her final remarks Electoral Commission of Zambia (ECZ) Chairperson, Justice Ireen Mambilima, said the average voter turnout in the recent presidential by-election was about 33 per cent. In some constituencies, out of about 33, 000 registered voters, one learns that only about 8, 000 registered voters actually voted. Justice Mambilima said this was the lowest voter turnout Zambia has ever experienced for many years.

While a winner in such high voter apathy political elections can celebrate having won a political election, it is clear that such a winner wins with a minority vote. Such a vote doesn’t give a winner confidence that one is a popular political representative in a given area. Such a situation threatens democracy dispensation as democracy promotes majority rule.


This is the voter turnout after lifting of the rate caps 2016

Quote:
Zambians have turned out in large numbers to vote in the general elections, observers say is the closest contest in the country’s history.

Most polling stations opened at 06:30 Hours and are expected to close at 18 Hours in the evening.

Some voters in the capital Lusaka made their way to the polling stations as early as 04 Hours.

Many observers have said the early turn out might cast doubts of voter apathy which has characterised the recent elections in Zambia.


They vote yearly?
"If you're tired of arguing with strangers on internet, try talking to one of them in real life"-Barack Obama 10th January 2017
muandiwambeu
#1711 Posted : Wednesday, January 11, 2017 11:44:37 AM
Rank: Member


Joined: 8/28/2015
Posts: 573
Swenani wrote:
wukan wrote:
MaichBlack wrote:
Problem: President Uhuru will probably not reverse these before the election for obvious reasons and after the elections, we don't know who will be the president and whether he or she will have the tyranny of numbers in parliament.

The country might be screwed longer than we anticipate and for what??? Political reasons!!!



Forget about the reversing of the rate caps, it received strong support even from CORD. The earliest you will see the lifting of the caps is around the year 2021. Uhuru will win the re-election even with massive voter apathy.

This is Zambia voter apathy with rate caps in 2015

Quote:
In her final remarks Electoral Commission of Zambia (ECZ) Chairperson, Justice Ireen Mambilima, said the average voter turnout in the recent presidential by-election was about 33 per cent. In some constituencies, out of about 33, 000 registered voters, one learns that only about 8, 000 registered voters actually voted. Justice Mambilima said this was the lowest voter turnout Zambia has ever experienced for many years.

While a winner in such high voter apathy political elections can celebrate having won a political election, it is clear that such a winner wins with a minority vote. Such a vote doesn’t give a winner confidence that one is a popular political representative in a given area. Such a situation threatens democracy dispensation as democracy promotes majority rule.


This is the voter turnout after lifting of the rate caps 2016

Quote:
Zambians have turned out in large numbers to vote in the general elections, observers say is the closest contest in the country’s history.

Most polling stations opened at 06:30 Hours and are expected to close at 18 Hours in the evening.

Some voters in the capital Lusaka made their way to the polling stations as early as 04 Hours.

Many observers have said the early turn out might cast doubts of voter apathy which has characterised the recent elections in Zambia.


They vote yearly?

And even if they do, the many yoked are happier than the uncredit worthy few attempting and unqualified too. Before the reality sinks to them it will be next 10yrs plus. And by then, we will have learnt how to survive without or with, such that it won't matter at all to them. If you aren't credit worthy go packing, akuna cooperative affair here any more. This is Kenya for you. Hakuna mkate nusu.Sad
,Behold, a sower went forth to sow;....
MaichBlack
#1712 Posted : Wednesday, January 11, 2017 3:41:20 PM
Rank: Elder


Joined: 7/22/2009
Posts: 7,109
wukan wrote:
MaichBlack wrote:
Problem: President Uhuru will probably not reverse these before the election for obvious reasons and after the elections, we don't know who will be the president and whether he or she will have the tyranny of numbers in parliament.

The country might be screwed longer than we anticipate and for what??? Political reasons!!!



Forget about the reversing of the rate caps, it received strong support even from CORD. [color=red[The earliest you will see the lifting of the caps is around the year 2021. Uhuru will win the re-election even with massive voter apathy.[/color]

This is Zambia voter apathy with rate caps in 2015

Quote:
In her final remarks Electoral Commission of Zambia (ECZ) Chairperson, Justice Ireen Mambilima, said the average voter turnout in the recent presidential by-election was about 33 per cent. In some constituencies, out of about 33, 000 registered voters, one learns that only about 8, 000 registered voters actually voted. Justice Mambilima said this was the lowest voter turnout Zambia has ever experienced for many years.

While a winner in such high voter apathy political elections can celebrate having won a political election, it is clear that such a winner wins with a minority vote. Such a vote doesn’t give a winner confidence that one is a popular political representative in a given area. Such a situation threatens democracy dispensation as democracy promotes majority rule.


This is the voter turnout after lifting of the rate caps 2016

Quote:
Zambians have turned out in large numbers to vote in the general elections, observers say is the closest contest in the country’s history.

Most polling stations opened at 06:30 Hours and are expected to close at 18 Hours in the evening.

Some voters in the capital Lusaka made their way to the polling stations as early as 04 Hours.

Many observers have said the early turn out might cast doubts of voter apathy which has characterised the recent elections in Zambia.

If he wins, rate caps will be suspended THIS year. If he doesn't win, it is anyone's guess what will happen. It will depend on who the next president will be, his/her grasp of economics and which between popularity and reality/economics matters to him/her most!!!

I miss Kefake!!! He would never play such games just for votes! He was an economist first and politician second. And his vast knowledge and experience were a big plus!!!
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
muandiwambeu
#1713 Posted : Wednesday, January 11, 2017 4:10:27 PM
Rank: Member


Joined: 8/28/2015
Posts: 573
MaichBlack wrote:
wukan wrote:
MaichBlack wrote:
Problem: President Uhuru will probably not reverse these before the election for obvious reasons and after the elections, we don't know who will be the president and whether he or she will have the tyranny of numbers in parliament.

The country might be screwed longer than we anticipate and for what??? Political reasons!!!



Forget about the reversing of the rate caps, it received strong support even from CORD. [color=red[The earliest you will see the lifting of the caps is around the year 2021. Uhuru will win the re-election even with massive voter apathy.[/color]

This is Zambia voter apathy with rate caps in 2015

Quote:
In her final remarks Electoral Commission of Zambia (ECZ) Chairperson, Justice Ireen Mambilima, said the average voter turnout in the recent presidential by-election was about 33 per cent. In some constituencies, out of about 33, 000 registered voters, one learns that only about 8, 000 registered voters actually voted. Justice Mambilima said this was the lowest voter turnout Zambia has ever experienced for many years.

While a winner in such high voter apathy political elections can celebrate having won a political election, it is clear that such a winner wins with a minority vote. Such a vote doesn’t give a winner confidence that one is a popular political representative in a given area. Such a situation threatens democracy dispensation as democracy promotes majority rule.


This is the voter turnout after lifting of the rate caps 2016

Quote:
Zambians have turned out in large numbers to vote in the general elections, observers say is the closest contest in the country’s history.

Most polling stations opened at 06:30 Hours and are expected to close at 18 Hours in the evening.

Some voters in the capital Lusaka made their way to the polling stations as early as 04 Hours.

Many observers have said the early turn out might cast doubts of voter apathy which has characterised the recent elections in Zambia.

If he wins, rate caps will be suspended THIS year. If he doesn't win, it is anyone's guess what will happen. It will depend on who the next president will be, his/her grasp of economics and which between popularity and reality/economics matters to him/her most!!!

He would never play such games just for votes! He was an economist first and politician second. And his vast knowledge and experience were a big plus!!!

Laughing out loudly Laughing out loudly Laughing out loudly Mavi ya kuku? So now you feel really kukuued?
,Behold, a sower went forth to sow;....
MaichBlack
#1714 Posted : Wednesday, January 11, 2017 4:25:26 PM
Rank: Elder


Joined: 7/22/2009
Posts: 7,109
muandiwambeu wrote:
MaichBlack wrote:
wukan wrote:
MaichBlack wrote:
Problem: President Uhuru will probably not reverse these before the election for obvious reasons and after the elections, we don't know who will be the president and whether he or she will have the tyranny of numbers in parliament.

The country might be screwed longer than we anticipate and for what??? Political reasons!!!



Forget about the reversing of the rate caps, it received strong support even from CORD. [color=red[The earliest you will see the lifting of the caps is around the year 2021. Uhuru will win the re-election even with massive voter apathy.[/color]

This is Zambia voter apathy with rate caps in 2015

Quote:
In her final remarks Electoral Commission of Zambia (ECZ) Chairperson, Justice Ireen Mambilima, said the average voter turnout in the recent presidential by-election was about 33 per cent. In some constituencies, out of about 33, 000 registered voters, one learns that only about 8, 000 registered voters actually voted. Justice Mambilima said this was the lowest voter turnout Zambia has ever experienced for many years.

While a winner in such high voter apathy political elections can celebrate having won a political election, it is clear that such a winner wins with a minority vote. Such a vote doesn’t give a winner confidence that one is a popular political representative in a given area. Such a situation threatens democracy dispensation as democracy promotes majority rule.


This is the voter turnout after lifting of the rate caps 2016

Quote:
Zambians have turned out in large numbers to vote in the general elections, observers say is the closest contest in the country’s history.

Most polling stations opened at 06:30 Hours and are expected to close at 18 Hours in the evening.

Some voters in the capital Lusaka made their way to the polling stations as early as 04 Hours.

Many observers have said the early turn out might cast doubts of voter apathy which has characterised the recent elections in Zambia.

If he wins, rate caps will be suspended THIS year. If he doesn't win, it is anyone's guess what will happen. It will depend on who the next president will be, his/her grasp of economics and which between popularity and reality/economics matters to him/her most!!!

He would never play such games just for votes! He was an economist first and politician second. And his vast knowledge and experience were a big plus!!!

Laughing out loudly Laughing out loudly Laughing out loudly Mavi ya kuku? So now you feel really kukuued?

He was just the one @muandiwambeu!

None of these guys (politicians) in government or opposition even comes close to Kefake!!!

The closest we can get to Kefake is Mukhisa Kituyi. But Kenyans in their own "wisdom" will not be giving him the job any time soon. So we will end up with what we deserve!!!
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
obiero
#1715 Posted : Wednesday, January 11, 2017 6:06:01 PM
Rank: Elder


Joined: 6/23/2009
Posts: 5,619
Location: nairobi
MaichBlack wrote:
obiero wrote:
aemathenge wrote:
Razia Khan, The deeply respected Regional Head of Economics, Africa, at Standard Chartered Bank has this to say:

Rink:

Quote:
Populist policies have also played a role in weakening the performance of the financial sector.

In Kenya, the full impact of the adoption of loan rate caps and regulated loan-deposit spreads, introduced in 2016, will only be seen in 2017 or beyond.

Banks now face a maximum rate at which they are able to lend to clients.

Wherever loan rate caps have been introduced in the past, the effect has been the same.

If banks cannot price adequately for risk, they withdraw their lending, choosing to lend only to the safest and most established borrowers.

Small and medium enterprises as well as new start-ups with no established credit histories will likely face the brunt of this, meaning several growth and employment opportunities will be forgone somewhat needlessly.

This was obvious to pedestrian observers including @spikes and @vvs

It was not @Obiero.

This has been one of the main arguments on this thread. We have been trying to tell people this will definitely happen but they have been saying never ever and even telling us their M-shwari maximum loans have been increased!

But may be now that the heat has hit the M-Shwari kitchen, they might finally see the light. But I am not holding my breath.

Tough times lay ahead
Ngalaka
#1716 Posted : Thursday, January 12, 2017 11:10:37 AM
Rank: Veteran


Joined: 10/29/2008
Posts: 1,087
For me this should have been obvious to all.

Govt poking its nose in free enterprise to control prices and set mark up caps is a recipe for disaster.

Even the common guy knows this.

Imagine if Govt were to dictate to local tomatoes farmers on what prices they should sell their produce.

The next thing would be farmers abandoning tomato farming and doing something else.

Ordinarily the market and its forces sets the prices for tomatoes based on prevailing factors at the time. That is why the price of tomatoes during the wet months is not the same during dry months.
Competition helps natural selection to thrive – as cost of production is never the same for all the players.

Same principle applies to Banking sector too.

I mean prior to this imbroglio, why wouldn’t the Govt have had some banks that it controls charge the favourable interest rates it wishes, then naturally we would've all trooped there. In Months the bank(s) would build the largest client base and thus compel the rest to naturally follow suit.

Even a keen businessman/woman would have seized that opportunity if it existed!
Isuni yilu yi maa me muyo - ni Mbisuu
wukan
#1717 Posted : Thursday, January 12, 2017 11:39:41 AM
Rank: Member


Joined: 11/13/2015
Posts: 242
The key thing investors are ignoring is the fact that CBK has turned to this

Quote:
A Forex exchange trader who requested anonymity, after the CBK banned traders from making any comments about the shilling worth, linked the shilling’s fall to the Government’s action of loosening its monetary and fiscal policies. “It is misleading to say that demand for dollars from oil importers is the reason for the weakening shilling. We have been importing oil for a long time now without such a drastic depreciation of the shilling. I figure out that a loosening monetary policy to finance our budget deficit is the reason for the weak shilling,” the trader said. Banking ACT He explained that since the banking amendment act came into place, CBK has been reluctant to tell the country about the money supply in the market. “Before the act came into effect, especially during the Kibaki era, we could easily tell the amount of money supply in the market. I remember in the last year of the Kibaki presidency, it was 21 per cent. But now, CBK is yet to give us the current rate. It is possible the money supply is high in the market in order to finance the deficit, hence weak shilling,” the trader said.
Read more at: https://www.standardmedi...ers-dollar-demand-rises


I know most wazuans are millenials and can't recall the last time KANU regime did that in 1992. The parabolic rally that resulted in 1993 was out of this world.
sparkly
#1718 Posted : Thursday, January 12, 2017 11:43:23 AM
Rank: Elder


Joined: 9/23/2009
Posts: 5,267
Location: Enk are Nyirobi
Ngalaka wrote:
For me this should have been obvious to all.

Govt poking its nose in free enterprise to control prices and set mark up caps is a recipe for disaster.

Even the common guy knows this.

Imagine if Govt were to dictate to local tomatoes farmers on what prices they should sell their produce.

The next thing would be farmers abandoning tomato farming and doing something else.

Ordinarily the market and its forces sets the prices for tomatoes based on prevailing factors at the time. That is why the price of tomatoes during the wet months is not the same during dry months.
Competition helps natural selection to thrive – as cost of production is never the same for all the players.

Same principle applies to Banking sector too.

I mean prior to this imbroglio, why wouldn’t the Govt have had some banks that it controls charge the favourable interest rates it wishes, then naturally we would've all trooped there. In Months the bank(s) would build the largest client base and thus compel the rest to naturally follow suit.

Even a keen businessman/woman would have seized that opportunity if it existed!


Problem is that you buy the free market fallacy hook line and sinker. Regulation is a fact of life. Free market is only an appearance.
Life is short. Live passionately.
Ngalaka
#1719 Posted : Thursday, January 12, 2017 11:56:57 AM
Rank: Veteran


Joined: 10/29/2008
Posts: 1,087
sparkly wrote:
Ngalaka wrote:
For me this should have been obvious to all.

Govt poking its nose in free enterprise to control prices and set mark up caps is a recipe for disaster.

Even the common guy knows this.

Imagine if Govt were to dictate to local tomatoes farmers on what prices they should sell their produce.

The next thing would be farmers abandoning tomato farming and doing something else.

Ordinarily the market and its forces sets the prices for tomatoes based on prevailing factors at the time. That is why the price of tomatoes during the wet months is not the same during dry months.
Competition helps natural selection to thrive – as cost of production is never the same for all the players.

Same principle applies to Banking sector too.

I mean prior to this imbroglio, why wouldn’t the Govt have had some banks that it controls charge the favourable interest rates it wishes, then naturally we would've all trooped there. In Months the bank(s) would build the largest client base and thus compel the rest to naturally follow suit.

Even a keen businessman/woman would have seized that opportunity if it existed!


Problem is that you buy the free market fallacy hook line and sinker. Regulation is a fact of life. Free market is only an appearance.

Regulation yes, as in moderation.
NOT price control per se and mark-up macro management.
Isuni yilu yi maa me muyo - ni Mbisuu
sparkly
#1720 Posted : Thursday, January 12, 2017 12:57:57 PM
Rank: Elder


Joined: 9/23/2009
Posts: 5,267
Location: Enk are Nyirobi
Ngalaka wrote:
sparkly wrote:
Ngalaka wrote:
For me this should have been obvious to all.

Govt poking its nose in free enterprise to control prices and set mark up caps is a recipe for disaster.

Even the common guy knows this.

Imagine if Govt were to dictate to local tomatoes farmers on what prices they should sell their produce.

The next thing would be farmers abandoning tomato farming and doing something else.

Ordinarily the market and its forces sets the prices for tomatoes based on prevailing factors at the time. That is why the price of tomatoes during the wet months is not the same during dry months.
Competition helps natural selection to thrive – as cost of production is never the same for all the players.

Same principle applies to Banking sector too.

I mean prior to this imbroglio, why wouldn’t the Govt have had some banks that it controls charge the favourable interest rates it wishes, then naturally we would've all trooped there. In Months the bank(s) would build the largest client base and thus compel the rest to naturally follow suit.

Even a keen businessman/woman would have seized that opportunity if it existed!


Problem is that you buy the free market fallacy hook line and sinker. Regulation is a fact of life. Free market is only an appearance.

Regulation yes, as in moderation.
NOT price control per se and mark-up macro management.


Me thinks an i spread of 7℅ is modest moderation. No business can grow on usurious rates.
Life is short. Live passionately.
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