Who are the real Loan Sharks and who support them ?

• robertteh

  4 Oct 05, 22:13

  In order to encourage international banks to set up financial hub in Singapore, even if these foreign banks charge usurper's exorbitant crippling 24% interest, the government will close one eye.
  
  If this kind of staggering interest is ever charged by any one else they will be called ah long or loan shark straightaway and there will be outcry and case will investigate such lenders like the way case is pursuing the orchard road retailers for the smaller petty overcharge.
  
  One just wonder why case is not willing to act fair and prevent banks from overcharging crippling interest especially by one-sided arbitrary increases.
  
  It is very clear that our policies are always worked out to favour the big boys and foreign banks who are favorites of our MAS.
  
  No wonder the economy is getting from bad to worse.
• ndmmxiaomayi

  4 Oct 05, 22:23

  At least they are legal. I guess the difference is banks is one-off interest (24%), and loan shark is compound interest. Loan shark will roll and roll until the snow ball very big. Banks will also roll and roll, but not quite sure if it will be as huge as the loan shark loan. Correct me if I am wrong.
• robertteh

  4 Oct 05, 22:41

  Originally posted by ndmmxiaomayi:

  At least they are legal. I guess the difference is banks is one-off interest (24%), and loan shark is compound interest. Loan shark will roll and roll until the snow ball very big. Banks will also roll and roll, but not quite sure if it will be as huge as the loan shark loan. Correct me if I am wrong.

  By being made to legal to raise interest charge midway at usurper's crippling interest at 24% the bank is actually using its legal power to bankrupt poor people.
  
  If bank is given the protection or legal power to raise interest to 24% it should not abuse such power to bankrupt the poor borrowers. If anyone operates with state power behind it, it should be more moderate and reasonable in its lending rate.
  
  After all the state will not allow loan sharks tp charge such crippling interest which even without compounding can be crippling to people.
  
  By being allowed legally to raise interests of this kind, bank should not abuse its power and should practise moderation since it is not being treated as loan shark. Bank should not try to take advantage to be worse than loan sharks.