South African National Credit Act

Before i start let me say i dont work in House or Car sales or any financial services company.

The single biggest reason for SA negative growth. Business and Consumer cannot access funds at the record low levels we find the interest rates at.

Housing knock on is that most house sales go subject to sale.
This becomes a chain of unsold houses.
Cars and Secondhand cars etc.
Business loans for Equipment/Plant all tied up by new rules that do only one thing insulate the banks from bigger losses.

From a slightly different view I've worked in HR and seen what unscrupulous lenders do to people's bottom line as they issue garnishee orders and eventually leave people with nothing.

Yes, they shouldn't have gotten into debt in the first place. But, with micro lends the person immediately signs a garnishee order with high admin costs, the minute they default the order is issued. Before the act as well one lawyer in particular used to charge 135% interest! It was all just so disgusting it used to leave me spitting - people were left in debt for life with interest and administration fees.

The spirit of the Act is to make sure that the person taking the loan can really afford to repay it. Yes it is really painful (I've been on the processing end as well) but at the end of the day it (hopefully) stops people getting into a worse and worse debt spiral.

Brace yourselves..
jan to march - 180,000 retrenchments excluding farming or agricultural related.
April to dec - 1,000,000 retrenchments...

global
jan to march - 50,000,000 retrenchments in all but africa
april to dec - 200,000,000 retrenchments in all but africa

face reality...walk away a winner...
the way we were doing business, am doing business...WILL HAVE TO CHANGE..
never mind the interest rate, credit act, government promises,...

most RSA banks will fold by dec 2009...

TECHNICALLY THEY ARE BANCKRUPT...BEEN DOING CHINESE ACCOUNTING to keep the share price high..
RMB (FNB) have shed some light on their losses >R3billion?
ABSA said something....

The reality, all the properties that the banks reposess, buy back on the sheriff auctions are being kept on the balance sheet, under Assets - debtors book, while nothing is shown under liabilities...

ie cosmo city shows R530,000 in debtors book, while the bank bought it back for R200,000 on the auction...
when are they going to show the R330,000 loss on the unit.

They were hoping that all the PIP's would have been "MOPPED UP" by investors.
It never happened, will never happen, now they are in ......


once they have bought the property back on the auction, they dont transfer it out of the owners name to the banks name...sure they do a few...to make it look like they are busy...

You right Andrew - we are in the poo.
Friend of mine an Attorney in Gauteng(smallish practise) doing 400 sequestrations per month.
Where will it end?

The best part...
they are giving increases to the doctors with money they still have to collect in taxes (who are going to pay tax) or borrow from overseas by issuing Government bonds (who will be buying)...

They going to borrow...tax shortfall this year R60bn

I have some pieces of leather i would like to trade for a few bars of soap. Perhaps a better way to work out the financial crisis Barter.

Maybe same free shares for a racetrack

Nightlights to swap for a few grumpy old men.

original tax and income collection was estimated by Grodon at +R660billion while he was at SARS..
vat, transfer duties, import duties, employee tax, company tax..

it now seems that they will only collect R400b this year...R700b next year...etc...

next year they will collect less...
the year after that they will collect even less...

remember...180,000 retrenched from jan to march...less employee tax...less vat..they dont have money to buy...

remember...1,000,000 will have lost their jobs by dec 2009...unions have agreed.....less employee tax...less vat...

all +800 JSE listed companies will/should/are going to post a tax loss..
all +800 JSE listed companies are going to carry the tax loss forward 2010,1011,2012....

where will they get money...
borrow...ok...someone is stupid enough to lend them money...but where are they going to get the money to repay the loans...employee tax, vat, company tax...