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| Thread ID: 55965 | 2005-03-23 22:43:00 | I hate banks | KiwiTT_NZ (233) | PC World Chat |
| Post ID | Timestamp | Content | User | ||
| 337353 | 2005-03-24 05:12:00 | When you get on the gravy train,just like 95% of politicians,you dont want to get off.How much they are in cahoots,who knows. | Cicero (40) | ||
| 337354 | 2005-03-24 05:40:00 | Playing with the OCR is all a big con-trick to deceive us into thinking we are a sovereign state with our destiny in our own hands. The reality is that every man woman and child is in debt to foreigners to the tune of ~ $24,000 per head. Then there is all the rest of industry, and real estate owned by overseas corporations. We are all mere puppets dancing on the end of strings :rolleyes: |
Terry Porritt (14) | ||
| 337355 | 2005-03-24 09:30:00 | Oh dear oh dear oh dear . :help: It is perfectly possible to borrow in overseas currency if you want to - not personal loans of course . But the overseas lender is going to want an interest rate just below our local rates - and you take a foreign exchange risk too . That is the risk return they require to invest in NZ . I remember businesses and a few farmers borrowing from European and American banks in the early 90s . Then the NZ $ slid downhill and suddenly their loans grew by 10% . The interest was low but oh dear oh dear . . . . . . . . . It is true banks do debt swops between currencies, and borrow overseas . But do not assume that the interest rate is the same as within the nation doing the lending . There is a risk premium attached to lending to a small country . Why would any European bank lend to a NZ bank at 2 . 5% when that same European bank can get Government stock at 6% from the NZ Government? And you cannot have it both ways: either the overseas banks, fundmanagers and investors investing here get the high return, or they go elsewhere . And local banks are not immune from this pressure . They have to pay enough to justify the loan risk . At present, the $US is weak, and will get weaker still . Our $ only looks strong, but it is helped by our strong economy . Essentially the risk required to get 6% in NZ, rather than 2 . 5% in Germany, is low, so the money flows . This is a huge and complex topic . I readily confess I get confused myself . One thing I do know is that banks don't make huge sums out of interest . Their profits come from selling insurance, trading debt instruments, and exchange rate trading . |
Winston001 (3612) | ||
| 337356 | 2005-03-29 00:40:00 | Thanks Winston, Learning everyday | KiwiTT_NZ (233) | ||
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