The good Prof is finally smoking some good herbs...the economy was hearded for a hard lending...i think the situation which was coming was worse..look at all my articles...the key words..crisis.. recession and probably public unrest...once again i'm challenging someone to show me where/which country were interest rates hiked and then chopped down latter has resulted in Stagflation?

In my fine prints I cant see where its written that my Bank could increase or reduce the monthly loan repayment.
Am I reading right?

@The deal ,wont this make the cost of getting credit for businesses higher and kill the businesses then ?
How will businesses expands ? what of those that are highly geared? death? no?

Wait till you see/hear the annual results for Kenol-Kobil then we can see if you will be able to use Kenol vs Total analogy.
You can't compare a company like Apple with a company operating in Kenya(or other developing country).The working environment there is quite different. Not that we dont have entrepreneurs here but those in developed countries have a head start.(everything on a silver plate )3 month LIBOR rate for example is curently below 0.5%
compare this now with our 11% for CBR rate ?

Cost of capital is what drives an economy you make it high you stall the economic growth

American crisis has been caused by factors other than high interest rate Key among them capitalism and liberalization.

They have failed to protect key/strategic industries and let foreigners (China and India) milk them(do the jobs and take the dollars.Im afraid we(kenyans) are doing the same and it will just worsen the situation in not too longtime.I saw chinese selling toys and hawkers items at the Nairobi International trade fair.This should not be allowed .Instead the Chinese should only be showing us how to make the machines for making these toys(technology transfer).

Our cotton industry is dead yet I saw in the trade fair that we have the technology and labour to revive it , only the political will is lacking. Being labour intensive this could create many jobs .Only that our fat cats are importing second hand (mitumba ) clothes to enrich themselves .

http://economyincrisis.o...sed-our-economic-crisis


Were the interest rate higher , then the crisis will have been unbearable to the Americans .