12-13-2010, 05:36 AM
note also please
that it is really not GROWTH
when the net increase is for LOANS
which are offerred at extremely high
to my mind USORIOUS interest rates....
to get the population indebted.....
We did see how that worked out in the US, did we not?
So untill I see FIXED RATE 30 year mortgages at below 8% here
you will not be able to convince me that there is any real
12-13-2010, 05:39 AM
now I just logged into my AMEX account
and got a FRAUD ALERT notice
so I will have to call the number on the back of my card to talk with them
that is what we are all saying about this country!!
CLEAN IT UP!
we like it here
12-13-2010, 07:13 AM
Debt is not growth, and all the pretty buildings, fdables told by gubmint mouthpieces/institutions and anecdotes won't make it so tofolks who actually understand economics. A leased car is not wealth.
My Visa got hacked again last week...the third time in almost 3 years...right after a purchase at Ochoa. My debit card has been hacked twice. Kudos to the nice people at the Fraud Department of my cc company for the heads up someone from the DR was trying to buy $4400 worth of stuff from Best Buy.
I never ever had a problem with cc or dc hacking in the states.
I love this country. But it's a lot like The Picture of Dorian Gray. It's all pretty in many places on the outside, but there is a deeply flawed, ugly underbelly to many aspects of society.
12-13-2010, 10:55 AM
You can just as easy replace the Dominican based names/companies/sites with any part of the world and they'll fit like a glove! Nor Ban reservas neither La Sirena were at fault for your woes, most likely the Cardnet system red flagging prevented your charges from going ahead.
Originally Posted by mountainannie
As you posted, there are policies to follow for everything, even closing the account when is YOU 100%. This applies even in the USA and UK the same. Policies are there to prevent unauthorized things from happening in the first place. I see nothing wrong with there not being double the tellers at banks, since they can't go about hiring and training clerks just for the net few days it takes for that higher volume, when in fact people can just have their checks deposited directly to their accounts and withdraw at the bank's atm...
I see no flaws there!
12-13-2010, 11:04 AM
If you take a look at lending practices used by banks in the USA and that of DR, you'll see how formidable the banking system in the DR really is.
Originally Posted by mountainannie
To begin with, in the DR unless your collateral or property is enough to cover the risks by 200% or the bank is outright using you to obtain cheap property, your odds of getting a balloon loan are remote to none. Property claimed values are not set by the hustle and bustle of flippers, but buy the bank itself. Let me tell you! Banks in the DR consider property at values that removes about 50 to 60% of actual market going rates when it comes to them lending you!
Loans are offered at extremely high rates for the same reason there's no RE bubble to pop anytime soon in the DR. If you can't afford the loan, then that means you wouldn't stand a chance if things turn sour in the economy. Take the ratio at which Ban reservas was able to lower the % of bad loans during the worst of the economic crisis! That will tell you a thing or two about how well baked those high risk loans really are by tangible assets.
On the contrary growth based on 30 years and below 8% rates are exactly the furthest away from the profit principles based on safe and sound economics.
12-13-2010, 11:09 AM
Originally Posted by mountainannie
I'm 100% with you there! The current easy to crack credit/debit imported system is not good. Thatís where the DR is working on a new multi-pin, fraud-proof system for both merchants and clients. Removing some layers of fraud and adding some new regulations and e-currency will solve 99% of problems.
In the meantime do as 99% of Dominicans do: USE COLD HARD CASH!
12-13-2010, 11:15 AM
Originally Posted by cobraboy
Maybe a lot of people should bail out then and return when the fixes are completed?
Somehow the reverse is happening with alarming rates as of lately!
12-13-2010, 05:33 PM
I don't see a direct connection between solvent banks and a country depending on external cash loans and remittances to survive.
I'm not aware of anyone who's made any statements that banks in the DR are on the brink.
I am aware that folks claim...rightly so...that huge debt does not a sound economy make no matter how pretty (and empty) the new buildings are.
12-13-2010, 06:00 PM
Read on the BBC the other day that the EU central bank has annouced that a country's private lenders will pay back future bailouts - or at least the country that is bailed out must pay the EU central bank first even if it means defaulting on other debts.
Way to reduce confidence.
But confidence needs reducing.
False confidence is not a good thing.
Hmmmm - trouble at mill.
12-13-2010, 06:15 PM
I am placing a video below to help explain what exponential growth is and why the DR economy is on the same trajectory. Once you've watched the video, it'll help you understand my charts and posts regarding the explosive moves in DR GDP on the upside These explosive moves are a precursor to crashes. Here's why.
<object width="480" height="385"><param name="movie" value="http://www.youtube.com/v/EXd66gP53fk?fs=1&hl=en_US"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/EXd66gP53fk?fs=1&hl=en_US" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="480" height="385"></embed></object>
Now that you've seen the video, you can better understand my charts and commentary as the one that follows:
One notices immediately the rapid rise in DR GDP in the enclosed area. It has also been a debt based production. The DR is tracking both Zimbabwe and Iceland in term of growth. Since it tracks their growth, it eventually will track their decline.
The inclination of the ascent is not as great as Zimbabwe (yet) but it is greater than Iceland's inclination prior to its collapse. Thus, the DR is situated between Zimbabwe and Iceland. As a result, one can state that the decline in DR GDP can be placed anywhere between 40 to 90%. In the '84-'85 time period, GDP dropped 50%. Thus, to state a drop in the range from 40 to 90% is not without historical precedent.
Can DR GDP continue rising? It most certainly can continue rising in an explosive manner as it has been exhibiting in AREA 3. It then would be following in Zimbabwe's footsteps. The pundits and cheerleaders will herald this continuation movement as proof positive of the resiliency of the DR economy.
Such a massive spike in DR GDP continued on an ongoing basis is the perfect set-up for an even greater decline in a very short period of time. At the rate at which GDP rises, it also falls.
Last edited by Onions/Carrots; 12-13-2010 at 06:24 PM.
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