12292: Re: 12281: HAITI: CREDIT UNIONS : Poincy comments (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: "[iso-8859-1] Jean Poincy" <caineve@yahoo.fr>



Now that the bubble bursts, the depositors are
absolute loosers. I understand that the government
wanted to do something good by attempting to regulate
the Credit Unions; however that turns out to have the
exact consequences they were trying to prevent.

If the government's intention was to protect the big
banks they were unable to anticipate the impact on the
depositors themselves whom were to be protected in the
first place. That seems to be a lack of wisdom in
public affairs and that's a shame.

One did not need to have an investigation nor find a
formula to explain or justify those excessive interest
rates. One does not need a degree in economics to feel
there was something wrong with it. If Ayitians agreed
to do it, they knew they were taking a risk that's
worth it due to the high return in a place where
people are unemployed, production level is at the
bottom pit and all sectors in the population are
threatened by poverty.

That was a way out, but they did not know how long it
would hold. They all knew there was a dark cloud. If
no one blew the horn about regulating it things would
still be smooth and people would still be happy. Not
that I am saying the government should have remained
passive, but they could intervene silently and with
measures to protect the depositors without causing too
much alarm.

The government could concert with the head of these
institutions to find a way that would ensure a safe
return of the depositors' money. One simple way could
be to impose a security deposit by each while
absorbing them in the main stream of the banking
system. Since the damage is done, the government cand
take the initiative to bail them out if they are
bankrupt and I doubt they are.

Those who run these institutions are just scared to
loose whatever they earned. At this point they rather
do times in jail and come out very rich while the
depositors remained the real loosers. Whatever one
says, it was survival and everyone wanted to use it to
their benefits. No economic theories are necessary to
explain the state of a people holding the survival
rope.

The way things are right now, they are to be kept
around if they want to protect the depositors' initial
investment. If they continue alarming these
institutions or nothing concrete is being done the
people (depositors) will let expose their delirious
state.

Where were the economists when the whole thing
started? Why couldn't they say anything or propose a
means to ensure the people's money? Now that things
are shaky, they all get on the bandwagon to blow their
horn and cause more alarm in the "I knew it" and "I
told you so" tune. Why can't they join together and
devise a way to resolve the problem? What have they
proposed besides regulating? Regulating does not work
all the time and definitely not in this case.


Ayiti has lived, lives and will live
Mozeb
http://www.regeneration-dayiti.org


___________________________________________________________
Do You Yahoo!? -- Une adresse @yahoo.fr gratuite et en français !
Yahoo! Mail : http://fr.mail.yahoo.com