Tuesday, April 15, 2014

Bhutanese Financial System Sucks!!!

Government gives money to banks. Banks gives money to only those who can produce mortgage. How are poor and young entrepreneurs going to produce that mortgage??? Why does our banks not lend based on business proposal and market feasibility??? I bet if any bank has conducted market feasibility studies or market research to help lend to good business proposals! Most of the borrowers who have taken money from banks have defaulted. Why? Because they had the luxury of mortgage for which the banks kissed their asses. 

Our financial system has become the business of assets and asses. The simple reasons is no matter however the money is used by the borrowers banks are safe with the mortgage?? And when the borrower defaults the banks simply confiscates the mortgage. The bank then sells that mortgage and makes money to be lent again to the borrowers who have mortgage. So the same money and assets are running in a cycle. Where is the new money made? NIL. 

That's why we have trade deficits. That's why we are importing more than we can export. That's why our young people are jobless and hopeless because they can't even become entrepreneurs since access to finance is controlled and beyond their reach. That's why we're witnessing the gap between the rich and poor is ever widening. That's why the middle class and the lower class are frustrated and creating all the social ills triggered by the greedy and discriminating behaviors of the rich. 

RMA thinks they are doing good job by controlling the banks but they are merely looking after the boring cattle. Banks are grazing comfortably on people's assets without doing any intelligent jobs of running the economy based on knowledge and innovation but simply on mortgage based lending. And to look after the cattle we don't need highly paid executives. A simple cattle herder can do. And we have plenty of cow herders. 

But ignorant Bhutanese people people are kept away through the veil of bourgeoisie tricks. The government along with the banks use lofty words of economic stimulus plan, growth rate, foreign exchange, interest rate, borrowings, which are nothing but useless archiac methods dragging our innocent people deep down to the financial doldrums. 

I can only see the war brewing between the agitated poor and greedy bourgeoisie in our society.

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