Name: CHAN, Sin Fong
Subject: Banks - Triple Dipped
Visit Time: 16/01/2008 2:28 AM
What a load of rubbish that due to the subprime crisis, banks have to pay more to raise or repay overseas borrowing? On the contrary, the interest rate in US has been dropping, and our currency versus the US increasing.
To illustrate this with a simplified example, if our currency has risen from 80 cents to 88 cents per US dollar, the increased percentage is (88-80)/80*100% = 10%. If the interest rate were to increase, not decrease in this instance, from 5% to 8% in US due to the subprime crisis, the increase is just only 3%. By repaying the loan in US dollars, the banks netted a gain of 7%. The banks are crying poor, but in fact they are making more money now than they claimed to have outlaid.
By charging more from the least afforded, the banks are evil and morally corrupted
To illustrate this with a simplified example, if our currency has risen from 80 cents to 88 cents per US dollar, the increased percentage is (88-80)/80*100% = 10%. If the interest rate were to increase, not decrease in this instance, from 5% to 8% in US due to the subprime crisis, the increase is just only 3%. By repaying the loan in US dollars, the banks netted a gain of 7%. The banks are crying poor, but in fact they are making more money now than they claimed to have outlaid.
By charging more from the least afforded, the banks are evil and morally corrupted
