The dangerous lives of bankers working in Joburg

Jabulani22

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Feb 11, 2017
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#63
Define a reasonable interest rate...
I did my best to answer so far , its only reasonable that you start your counter with justification of usury , its how discussion/debate works .
Otherwise one side would list their points and the counter would just be picking at any little fault without a true comeback on the merits of the opposing side of the discussion/debate.
 

ToxicBunny

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#65
I did my best to answer so far , its only reasonable that you start your counter with justification of usury , its how discussion/debate works .
Otherwise one side would list their points and the counter would just be picking at any little fault without a true comeback on the merits of the opposing side of the discussion/debate.
But I can't until you define what you feel is reasonable... Since I feel the nca covers the concept very well and is reasonable if not even beneficial towards the customers..
 

Jabulani22

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#66
But I can't until you define what you feel is reasonable... Since I feel the nca covers the concept very well and is reasonable if not even beneficial towards the customers..
So not willing to express your own views to further the conversation , twice now you have hidden behind similair things , usury should be illegal thats my view. rebut it or dont , justify usury or dont.
 

ToxicBunny

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#68
So not willing to express your own views to further the conversation , twice now you have hidden behind similair things , usury should be illegal thats my view. rebut it or dont , justify usury or dont.
My own view is that the nca is a perfectly good piece of legislation and protects the vast majority of people.... Now define a reasonable interest rate that you feel would be non predatory and prevent poverty and crime.
 

aleksandar

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Jun 14, 2014
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#69
I think over the years laws were updated to prevent unreasonable interest and that probably reduced exploitation.
However people borrowing are the problem.

Once upon a time colleague asked me if I could help him fake pay slip in order he can get a loan.
Gave him long lecture why that would be wrong but he was still not convinced.

More recent example was regarding fridges:
Our died (mother board, consequence of old age (11 years) and load shedding) instead of buying new one I decided to find motherboard and fix it.
In discussion with my maid she mentioned that her brother is buying new double door fridge and that it is on credit.
Again we had a discussion about it, high interest, hidden costs and all, still she did not manage to convince him not to do it.

One thing that I feel strongly is that all medical type loans should be at prime or at discount.

Coincidentally my colleague was stabbed for his phone while leaving FNB in CBD 3 years ago. Luckily it was not bad.
 

rietrot

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#70
I could but it would be more fun for you to find out how predatory lending practices could push people into crushing debt (also known as poverty).
Not like people aren't responsible adults that should be free to make their own decisions? If you don't like usury just don't use it.
 
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NarrowBandFtw

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#71
Not like people aren't responsible adult that should be free to make there own decisions? If you don't like usury just don't use it.
One person deciding to live a financially responsible life makes no difference to others living reckless lives and finding excuses to become criminals.

Having said that, I don't really have an issue with 'usury', I'd rather stamp out fractional reserve banking which is the real culprit.
 

rietrot

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#72
My own view is that the nca is a perfectly good piece of legislation and protects the vast majority of people.... Now define a reasonable interest rate that you feel would be non predatory and prevent poverty and crime.
The NCA has some problems. It is essentially a form of price controls, it sets maximum service fees for example and this makes so that there's no price discovery and all lenders and banks just charge the monthly maximum R57 for anything, also initiation fees is ridiculously high. But other than being nanny-state price controls, it is a good piece of legislation protecting us from ourselves.
 

rietrot

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#73
One person deciding to live a financially responsible life makes no difference to others living reckless lives and finding excuses to become criminals.

Having said that, I don't really have an issue with 'usury', I'd rather stamp out fractional reserve banking which is the real culprit.
There's nothing wrong with fractional reserve banking. If bank had to keep 100% of all deposits they won't be able to lend out any money. If you are depositing money into a bank and expecting any interest in return they have to do something with it. Like lend it to other people.

It is obviously reckless at extreme fractions and banks going bankrupt should not be bailed out.
 

pinball wizard

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#76
I remember when I was at Standard Bank I used to dread having to go to Simonds. The "best" was arriving at the parking lot, walking through that tunnel, getting into a Standard Bank minibus taxi and being taken to the Marshall Street office.
I remember when threads in N&CA were moderated and stayed roughly on topic.

I thought this was a banking practises thread judging from the first few pages, then I read the OP and title.
 

rietrot

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#77
Lending out money that has been deposited is not the problem, lending out money that does not exist is the problem with fractional reserve banking.
You don't understand what fractional reserve banking is. This is the internet conspiracy version and it is wrong. Except maybe if you are talking about reserve banks that create money, but that is the "gold standard" argument about whether they should back it with a physical commodity.

Didn't mean to come of to harsh, it still early, and I also believed many of the conspiracy theories about usury and fractional reserve banking.

Edit2 The money supply does expand because of fractional reserve banking as the same money gets deposited and lend out again and again. But that isn't banks lending out money that doesn't exist, the money they lend out do exist and the deposit still exists.
 
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ToxicBunny

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#79
The NCA has some problems. It is essentially a form of price controls, it sets maximum service fees for example and this makes so that there's no price discovery and all lenders and banks just charge the monthly maximum R57 for anything, also initiation fees is ridiculously high. But other than being nanny-state price controls, it is a good piece of legislation protecting us from ourselves.
Precisely this, it has a few issues of course, but by and large it stops the predatory lending practices and protects idiots from themselves as much as is realistically possible.
 

Candystore

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Jan 23, 2009
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#80
So, as long as you don't leave your office, all is well? Why do the banks still have their offices there? Move elsewhere!
 
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