Thursday, July 15, 2010

Re: govt borrowing and the danders of debt financcing

less money circulating because government only its money in specific sectors and in infrastucture eg for the economic stimulus package they are doing more hospitals and classrooms not increasing salaries to workers. fewer investments because wangu the banks are more uncertain lending yu than the government so thats why you dont find bank people hawking loans and as my first statement says government dont invest it is me yu (the private sector). the net effect is a crowding out of the private sector. wangu can explain to yu the opposite (crowding in).
 

Munene




From: Rachel Wangu <wangu.mutua@viafp.org>
To: mlalahoi@googlegroups.com
Sent: Wed, July 14, 2010 5:14:16 PM
Subject: RE: govt borrowing and the danders of debt financcing

It means banks will be lending to the government so there will be less money available for individual borrowers like you and me. It also means that the interest rate charged by banks on loans to individuals like you and me will be much higher. So fewer people will be find getting loans from the banks attractive. SO there will be less money circulating in the economy. There will be fewer investments by normal people.  Etc etc.

 

 

 

 

From: mlalahoi@googlegroups.com [mailto: mlalahoi@googlegroups.com ] On Behalf Of caroline Wanjiru
Sent: Jumanne, Julai 13, 2010 1:33 PM
To: mlalahoi@googlegroups.com
Subject: [!! SPAM] govt borrowing and the danders of debt financcing

 

what are the effects of govt borrowing and debt financing in our country?

 

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