So what's up with SA Banks

[Baster Brak]

So  just before the the new National Credit Act is introduced and SA banks went balistic, reclessly offering credit to unsuspecting consumers, doing everything possible to get you to get into as much debt as they could possibly sell you. No things are tight, interest rates are high and consumers are being suficated under the heavy burden of servicing this recklessly granted debt, and guess what the banks are doing, they are tightening the nose, trying everything to secure assets against the debt that they had so recklessly granted. Is'nt it amazing, growing up as a kid in a small town I remember that the bank manager was reveared with the same kind of respect as the dominee, now I actually think and believe that a scond hand car salesman is of higher moral fibre than a bank employee, I would rather have my mother working in a whorehouse than my brother working at the bank. What has happened to our banks

[Evan Andreou]

Living in Bosnia should fortunately insulate you from this.

Bear in mind that banks (like any other business) have targets to make ito loans/bonds/credit cards etc. issued; they wouldn't be giving so many out if we weren't kind enough to use the credit extended to us and then look for more.

 

Just because I qualify for a loan doesn't mean I should take it.

[Guest Big H]

Ja nee Baster Brak...... hulle deel sambrele uit as die son skyn en neem hulle terug as dit reen.

[Delgado]

So  just before the the new National Credit Act is introduced and SA banks went balistic' date=' reclessly offering credit to unsuspecting consumers, doing everything possible to get you to get into as much debt as they could possibly sell you. No things are tight, interest rates are high and consumers are being suficated under the heavy burden of servicing this recklessly granted debt, and guess what the banks are doing, they are tightening the nose, trying everything to secure assets against the debt that they had so recklessly granted. Is'nt it amazing, growing up as a kid in a small town I remember that the bank manager was reveared with the same kind of respect as the dominee, now I actually think and believe that a scond hand car salesman is of higher moral fibre than a bank employee, I would rather have my mother working in a whorehouse than my brother working at the bank. What has happened to our banks

[/quote'] One word bud!! GREED!!!

[Evan Andreou]

One word bud!! GREED!!!

 

Aint capitalism great?

[andre_ct]

if it's not credit cards, it's policies or cellphones that i amazingly qualify for...nothing seemed to have changed

[intern]

 

So  just before the the new National Credit Act is introduced and SA banks went balistic' date=' reclessly offering credit to unsuspecting consumers, doing everything possible to get you to get into as much debt as they could possibly sell you. No things are tight, interest rates are high and consumers are being suficated under the heavy burden of servicing this recklessly granted debt, and guess what the banks are doing, they are tightening the nose, trying everything to secure assets against the debt that they had so recklessly granted. Is'nt it amazing, growing up as a kid in a small town I remember that the bank manager was reveared with the same kind of respect as the dominee, now I actually think and believe that a scond hand car salesman is of higher moral fibre than a bank employee, I would rather have my mother working in a whorehouse than my brother working at the bank. What has happened to our banks

[/quote'] One word bud!! GREED!!!

 

The greed of whom? No bank forced anyone to take credit or to buy a car they could not afford or to borrow money they did not want. The greed at play here is the greed of the CONSUMER. Banks do what banks do; indeed, our banks are nowhere near as reckless as those of overseas, maintaining as they do a debt/capital ratio of 10:1. Five large US investment banks were permitted by the federal reserve to move up to gearing of 30:1 and even more (these are organisations like Lehman Bros, Bear Stearns, JP Morgan chase...remember them? Consigned to history).

So, don't go blaming the banks while you drive you fancy car that you can't  afford to put petrol into, or go home to your swish neighbourhood where you can't afford to put food on the table which hasn't been paid for.

If consumers are too foolish to see beyond the end of their noses, they have to shoulder the blame too. And if that means the bank coming to claim that which is the banks...well, it is within its rights...

 

[intern]

Remember too, that our banks have for the longest time endured a constant pasting that they 'don't make money available easily enough'. Counter that against the observation that they recklessly lend...

 

BTW I hate the banks as much as anyone else should, I just don't think the consumer can run and hide and shift the blame for their piss-poor situation on to organisations doing their business as usual.

 

[JPW#]

 

The worst is a few years ago, a ceo of a "famous bank in SA" got 5.7 mil as a bonus and he complained and said...."how can I keep up my standard of living with such a small amount!"  hehe.... phew!   Well, its small amounts seeing that the top guys at Edgars earn 110 mil a year hehe.

JPW#2008-11-14 11:57:18

[Beesboer]

The greed of whom? No bank forced anyone to take credit or to buy a car they could not afford or to borrow money they did not want. The greed at play here is the greed of the CONSUMER. Banks do what banks do; indeed, our banks are nowhere near as reckless as those of overseas, maintaining as they do a debt/capital ratio of 10:1. Five large US investment banks were permitted by the federal reserve to move up to gearing of 30:1 and even more (these are organisations like Lehman Bros, Bear Stearns, JP Morgan chase...remember them? Consigned to history).So, don't go blaming the banks while you drive you fancy car that you can't? afford to put petrol into, or go home to your swish neighbourhood where you can't afford to put food on the table which hasn't been paid for.If consumers are too foolish to see beyond the end of their noses, they have to shoulder the blame too. And if that means the bank coming to claim that which is the banks...well, it is within its rights...

 

 

Agree. It's a business same as any other. Stop spending and you will not have a problem, but if you need the credit to fund your bling then pay up as well.

[calabash]

There are not many other countries in the world where you pay do deposit cash! My US bank fees are less than half of my SA fees.

[Man with no name]

 

So  just before the the new National Credit Act is introduced and SA banks went balistic' date=' reclessly offering credit to unsuspecting consumers, doing everything possible to get you to get into as much debt as they could possibly sell you. No things are tight, interest rates are high and consumers are being suficated under the heavy burden of servicing this recklessly granted debt, and guess what the banks are doing, they are tightening the nose, trying everything to secure assets against the debt that they had so recklessly granted. Is'nt it amazing, growing up as a kid in a small town I remember that the bank manager was reveared with the same kind of respect as the dominee, now I actually think and believe that a scond hand car salesman is of higher moral fibre than a bank employee, I would rather have my mother working in a whorehouse than my brother working at the bank. What has happened to our banks

[/quote'] One word bud!! GREED!!!

 

The greed of whom? No bank forced anyone to take credit or to buy a car they could not afford or to borrow money they did not want. The greed at play here is the greed of the CONSUMER. Banks do what banks do; indeed, our banks are nowhere near as reckless as those of overseas, maintaining as they do a debt/capital ratio of 10:1. Five large US investment banks were permitted by the federal reserve to move up to gearing of 30:1 and even more (these are organisations like Lehman Bros, Bear Stearns, JP Morgan chase...remember them? Consigned to history).

So, don't go blaming the banks while you drive you fancy car that you can't  afford to put petrol into, or go home to your swish neighbourhood where you can't afford to put food on the table which hasn't been paid for.

If consumers are too foolish to see beyond the end of their noses, they have to shoulder the blame too. And if that means the bank coming to claim that which is the banks...well, it is within its rights...

 

intern!! You're the only one here who seems to have a proper grasp of what the US banks did and the ability to differentiate with the SA banks. One thing though - JP Morgan Chase is the bank who came out of this whole mess the best. Lost less than 10% market cap!

 

intern!! Responsibility rests with the individual. No is also an acceptable answer. Manage your own finances. Funny how many people bitch about debt and how few discuss the current investment opportunities?

 

Baster Brak? Didn't figure you would be in financial problems, but remember, the NCA has debt councilors who can help you. Its only a phone call away!

 

[White Eagle]

One word bud!! GREED!!!

The greed of whom? No bank forced anyone to take credit or to buy a car they could not afford or to borrow money they did not want. The greed at play here is the greed of the CONSUMER. Banks do what banks do; indeed, our banks are nowhere near as reckless as those of overseas, maintaining as they do a debt/capital ratio of 10:1. Five large US investment banks were permitted by the federal reserve to move up to gearing of 30:1 and even more (these are organisations like Lehman Bros, Bear Stearns, JP Morgan chase...remember them? Consigned to history).
So, don't go blaming the banks while you drive you fancy car that you can't  afford to put petrol into, or go home to your swish neighbourhood where you can't afford to put food on the table which hasn't been paid for.
If consumers are too foolish to see beyond the end of their noses, they have to shoulder the blame too. And if that means the bank coming to claim that which is the banks...well, it is within its rights...

 

Agreed, the greed of the man in the street is a huge problem,BUT, the problem I have is that continued greed of individuals who run the banks and who saw the writing on the wall long before the sh$t hit the fan. It's one thing to stay within prescribed  ratios, but not when you are endangering shareholds investments and clients savings. They should be held accountable for the mess the world finds itself in now.

[linnega]

The National Credit Act only came about because consumers make poor decisions left to their own devices.  Banks and stores generally didin't provide reckless credit - they would never extend credit if they thought they could never recover the money - but they did overextend consumers.  As a result, some of the bigger retailers are having to write off 15-20% of their book.  What happened in the USA is different to what happens here.  A much larger proportion can safely secure credit against there income (as opposed to assets).  The problem was that US banks misjudged that level of income, and when it slowed had to turn to assets to recover their monies and the assets were nowhere close to covering the debt.  As a result many banks are teetering on the edge and some have shut down.

 

That all said, the driving force is the insatible appetite of the consumer to consume.  Look at the guys on this forum.  Many of you have wheels worth more than my bike and drive luxury cars, go on expensive holidays.  Most of this is funded by debt.  If you focussed on ensuring that the only debt you have is your bond and perhaps a car, then you could never be over your head in debt no matter the fluctuation in interest rates.  Still, I encourage you to spend, spend, spend - it just means a bigger bonus for me after Christmas.

 

[Spinnekop]

intern!! Responsibility rests with the individual. No is also an acceptable answer. Manage your own finances. Funny how many people bitch about debt and how few discuss the current investment opportunities?

 

 

Jadadidy, jadady blah....blah....crap.

 

True.  You and me know this.....

But we live in a world where temptation is ripe.......look but don't touch.  Touch but don't taste.......taste but don't swallow.

 

You give the banks a 50:1 ratio and they will get customers to take out loans.  EASY!! 

 

It's like putting Anriette in front of you.  Two peddles and you are so deep.....

Ag never mind......

 

MOET JY NIE FIKS WORD VIR MORE NIE??????????

Spinnekop2008-11-15 01:09:44

[linnega]

 

Agreed' date=' the greed of the man in the street is a huge problem,BUT, the problem I have is that continued greed of individuals who run the banks and who saw the writing on the wall long before the sh$t hit the fan. It's one thing to stay within prescribed  ratios, but not when you are endangering shareholds investments and clients savings. They should be held accountable for the mess the world finds itself in now.

[/quote']

 

That I definitely agree with.  The US banks should be liable for the losses sustained around world as their misjudgement has hurt most investors across the world.