The South African Reserve Bank finally started reducing interest rates by .5%. You can read the full SARB report at http://www.reservebank.co.za/ Here is some food for thought: (perhaps a conspiracy theory?) THE SUBPRIME CRISIS: During the past decade the United States firstly told Freddie and Fannie, their two biggest mortage lenders to lend money to people who shouldn't be loaned money, i.e. people with bad credit records; people who couldn't get credit; bankrupt people etc. This money to be used for buying houses. These people are called sub-prime borrowers. On March the 8th this year I wrote a detailed Blog entry called: Sub Prime Crisis; renewables; the price we pay; what you can do. Then they reduced interest rates to 1%. At 1% people bought houses and maybe were paying $83 per month on a $100,000 house. (Compare that with South Africans who would have been paying $1250 per month at 15%). Remember these people are already on the edge. Then the government increases in...
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