M-mbabe
JF-Expert Member
- Oct 29, 2009
- 13,203
- 23,027
My personal view....
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The recent revelation by the CRDB bank CEO that his bank has embarked on cut back measures on its lending towards the business appears to have sparked off memories of the 2007 - 2008 global financial crisis which culminated into considerable shrinkage to the global economy. You all may recall that it were the respective governments stimuli and bailouts that came to the rescue of the financial institutions, sparing the economy from total and catastrophic collapse.
The factors that led to that global financial downturn then appear to mirror the circumstances that our CRDB's learned CEO has recently revealed to us.
Let me provide here a brief recap of what transpired leading up to the last global "recession" by quoting what the former chairman of the UK’s Financial Services Authority, Lord (Adair) Turner stated in February 2013:
“The financial crisis of 2007 to 2008 occurred because we failed to constrain the financial system’s creation of private credit and money.”
Now, a million dollar question for us here in Tanzania at this moment is - is our economy going to stay safe if what the CRDB CEO has revealed to us is anything to go by? Do the powers that be have a back up plan (stimulus packages, bailouts, etc) in anticipation of any unwanted eventualities?
Am worried.....in fact scared to death of the demon that is possibly lurking out there, waiting to pounce and hurt not only our country's economy but also our micro welfare. This is compounded by a horrible fact that many people (be it from within the govt or business community) are scared of voicing their opinion which would otherwise have helped to arrest the trend before it gets out if control.
Something needs to be done. And fast!
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
The recent revelation by the CRDB bank CEO that his bank has embarked on cut back measures on its lending towards the business appears to have sparked off memories of the 2007 - 2008 global financial crisis which culminated into considerable shrinkage to the global economy. You all may recall that it were the respective governments stimuli and bailouts that came to the rescue of the financial institutions, sparing the economy from total and catastrophic collapse.
The factors that led to that global financial downturn then appear to mirror the circumstances that our CRDB's learned CEO has recently revealed to us.
Let me provide here a brief recap of what transpired leading up to the last global "recession" by quoting what the former chairman of the UK’s Financial Services Authority, Lord (Adair) Turner stated in February 2013:
“The financial crisis of 2007 to 2008 occurred because we failed to constrain the financial system’s creation of private credit and money.”
Now, a million dollar question for us here in Tanzania at this moment is - is our economy going to stay safe if what the CRDB CEO has revealed to us is anything to go by? Do the powers that be have a back up plan (stimulus packages, bailouts, etc) in anticipation of any unwanted eventualities?
Am worried.....in fact scared to death of the demon that is possibly lurking out there, waiting to pounce and hurt not only our country's economy but also our micro welfare. This is compounded by a horrible fact that many people (be it from within the govt or business community) are scared of voicing their opinion which would otherwise have helped to arrest the trend before it gets out if control.
Something needs to be done. And fast!