Huge capital requirements to move and then you still have the useless old building.So, as long as you don't leave your office, all is well? Why do the banks still have their offices there? Move elsewhere!
preciselyExcept 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
the fake money the central banks create to provide liquidity "to the system" is exactly that, it gets loaned to banks at very preferential rates and they in turn loan it out to customers at whatever rates they canthat isn't banks lending out money that doesn't exist, the money they lend out do exist and the deposit still exists.
As someone who says he is an expert I find his responses and replies quite the opposite. I don't think he is able to reply with a solution.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.
I tend to agree obviously, which was why I was pushing him for a solution. He strikes me as one of those people who sees what he feels is a problem, and the problem must go away... but its not his baby to come up with a viable alternative solution.As someone who says he is an expert I find his responses and replies quite the opposite. I don't think he is able to reply with a solution.
I have thought in the past we need to back money with something, go back to the gold standard. I have moved away from that view and now fully support worthless electronic or paper money.precisely
the fake money the central banks create to provide liquidity "to the system" is exactly that, it gets loaned to banks at very preferential rates and they in turn loan it out to customers at whatever rates they can
i.e. they are lending out money that was not deposited, but printed
That scenario shouldn't be able to exist anymore as it would be considered reckless lending, as toxic bunny stated.But he's got a point. What will you replace it with.
I get a salary of R4000. I have to support a family of 8 where I am the only one with work, they live in poverty, I stay with my boss but still have to pay 800 for transport to see them, food also for myself. The roof leaks at my family house, there is no water because of draught, food is very expensive, kids need school stationary, my daughter is sick, gas stove is broken. No electricity. I go to Africa bank and they give me a loan of R25000 rand to fix and pay everything. That money finish. Now I have 3000 a month, and 1000 for Africa Bank. Now I borrow more money every month to survive. And so on.
It is a vicious cycle. A bank should NEVER have given someone with a salary of R4000 a R25 000 loan, never mind the stupid high interest rate. But they make a hell lot of money at the poor becoming even poorer.
What is the solution?
That scenario shouldn't be able to exist anymore as it would be considered reckless lending, as toxic bunny stated.
The problem is that these people then go to gangs or other loan sharks that don't operate according to the law.
My maid tried approaching us for a loan for her shack, to fix roof etc. And put tenants in, we asked her how she was sure those tenants would pay their rent, else she'd be messed up for loan repayments. Obviously we didn't give the loan as we knew it would probably be a write off, the bank didn't give either, she went with a loan shark and as is now trying to live off half her salary as rest goes to service interest.
Not our job to bail her out for her bad decision, especially when we warned her.
She hasn't resorted to crime though, instead she's trying to make a plan, trying to get the tenants out via community help, etc. And also doing extra work so she can have enough to live.
So were the banks the problem? No, they didn't loan as risk too high and were sure that she wouldn't be able to pay. This is post the act though, and she was honest with what the use was for and her income. Those who fake that can't really blame the bank.