Wednesday, May 25, 2011

PAP and Shylock's daylight robbery

Sibor at record low thanks to US FED

Two esoteric terms on my charts, Sibor and Prime lending rate. In short, Sibor is the loan interest rate banks charge to one another. Besides, bank pays an interest roughly around Sibor to our saving deposit. Prime rate is the interest what you Joe pay when you incur bank loans.

The implication of low sibor is you savers are short changed by negative interest rate if inflation taken. 

Spread of Sibor and Prime Rate Diverging : Banks are robbing our monies

Sibor is 0.44% and prime rate is 5.38% as in 2011 May. Instead of lending 0.44% interesting rate to poor people, our country is lending 5.38% injuring the poor. Instead of jailing those criminal bankers and speculators, we are giving them cheap monies of 0.44% interest so that they can further screw us.

The low Sibor rate may not be entirely the government's fault, but definitely our government is able to lower the prime rate, selectively, for the poor.

Offering Sibor rate to Citizen

A very simple way to offer low interest rate to the needy is for HDB to reduce the interest of mortgage to sibor level. By not doing it, our government is clearly guilty of robbing the poor enrich the elites.



Anonymous said...

Just found your website ....

When you say "Sibor is 5.38% and prime rate is 0.44% as in 2011 May", do you mean the other way around [ie. Sibor lower than prime]?

Nice blog you have ... keep it up ..

Veritas said...

Thanks, I will make the correction.