Here are some statistics that jump out at me. For the past few quarters, the measure of tourism cherry-picked by the economics pundits was room revenue. That is the total monies collected from all tourism room rentals.
If you have a declining number of rooms rented, but you raise the price per room, you can show a positive increase in room revenue, in spite of the fact that you have had less visitors. This is what the Central Bank has been doing.
Raising the price per room is a double-edged sword, because it drives the number of room rentals even lower due to price shopping for rooms in cheaper destinations. So it has caught up to us. It is time to pay the piper. When room revenues decline, that means that room rentals have declined so much, that it shows a decrease in total revenues, and no amount of price-jacking can compensate for that.
Another notable statistic, is in the huge increase in domestic interest rates. What this means is that in order to sucker people into buying government bonds (a way to borrow money for the government without going to the banks), it gives an interest rate that is significantly higher than other bond issues or even bank savings. It has to do this in order to attract <strike>suckers</strike> buyers of the bonds. So it is spending more to service new debt.
And finally the third item of interest is the statistics of the improvement of non-performing loans. Non-performing mortgage and loans fell by 27.3 million dollars. That is not good news, because what has happened is that the institutions holding those loans, have sold them off on pennies on the dollar, and hence they can take them off the books. But they still have lost that money and that will eventually show up in the profit/loss columns.
As Mr. Hartnell said, there is economic gloom enveloping the country.
Oh man ... why does he say those stupid things? Doesn't he know that sovereign debt is not extended by many institutions without a Moody's rating? It is a huge red flag to international lenders.
Dunno and don't care. Maybe Pindling was off on his many nightly walking jaunts to do some hunting. He was an AC-DC fan.
But speaking of hitchhiking, I used to give Mr. Farrington, the old dance teacher rides around Nassau Town. He used to hitchhike on East Bay Street often spending the nights talking to the security guard at the rat-infested wharf at end of Deveaux Street. I think that his first name was Hubert. I was surprised to learn that he in fact was a famous Bahamian dancer.
He was a bit off his marbles and not entirely compos mentis, and he used to lecture me about the sins that IBM and big business wrought on the world (why he had it in for Felix and the boyz on Collins Avenue one never knows).
However he was run down with a car on the verge, and his noggin was smashed to pieces and it was a hit-and-run murder, and someone has the sin of taking the life of a wandering, half-crazy man on their soul. And the po-po did nothing because he was just an old man who was half crazy, running around town in his slippers, lecturing folks on the victimization of capitalism -- Comrade.
I don't mind blunders -- that is part of the human condition, and if someone fails while trying for a noble cause -- we all do that in our journey of Life. But the unforgivable is the criminal, and that describes every PLP government that this archipelago in the sun has ever known.
I understand that you are a PLP apologist, and nothing said or done, or even if your brain was seared in the crucible of Truth, nothing will excise the cult 666 PLP chip in your brain. You probably benefited monetarily while the rest Bahamians wallowed in the trough of the disenfranchised, consigned there by the very people that they elected to uplift them.
We could have had a much more enlightened and prosperous Bahamas if that Jamaican-born Haitian named Pendelaine never set foot on our soil.
In the land of the blind, the one-eyed Jack is King. His finance minister Sir William Allen delivered the only balanced budget in Bahamian history after the cocaine excesses of Lynden Oscar Swindling.
Hubiggity knew that the economy had to be diversified, and the forces of evil campaigned against it. He gave independence to the Central Bankers only to have the PLP leash them again.
He knew that the economy had to be kickstarted and he did a complete infrastructure renewal after years of PLP neglect.
Put that in your finance pipe and smoke it. Hubiggity was and wasn't many things, but he was a patriot who did the right things with the limited human capital that he had and the mafia criminality of the opposition that he faced.
Diverting conversation by asking other questions -- you too are guilty of the sins that you accuse others of. You have eyes but fail to see and ears but fail to hear. Pity. The Bahamas could have used more patriotic voices while Swindling was tearing apart the very social fabric of what made Bahamians wholesome -- the Truth.
Is this the mysterious bullets-in-the-bag at the airport guy?
I would ask Mr. Bostwick Number 2 (ask any child what number 2 is) where Bahamians would get the capital to own the industries. We have a non-convertible currency, exchange controls, limits on exchange of funds, and no commercial and merchant banks to handle the business. In addition, we do not have a credit bureau, so businesses cannot float their paper to finance their activities. BISX is a moribund joke that harbours international swindlers and thieves (Brown, Davis, Bethel et al) making large scale Bahamian ownership impossible.
Bostwick #2 is deeply mistaken if he thinks that Bahamian compliance officers and investment managers involved in discretionary portfolios and fiduciary risk could sell their services elsewhere. A bank's book of business is a closely guarded trade secret and the field is not open to freelancers domiciled in another country.
My dear Tal, if you knew anything about economics at all, you would be aware of something called "The Solow Model" of economic growth. It is a principle of macroeconomics dedicated to long term economic growth irrespective of business cycle fluctuations.
What Hubiggety was doing, was creating the inputs for GDP growth. The Solow equation: Y = AF(K, L) where Y is is the GDP growth, K & L are the Capital & Labour inputs, F is the functional relationship of economic growth to capital and labour. A is the exogenous parameter related to technology or external factors (in the case of Baha Mar it is negative due to the mental retardation, stupidity, and gullibility of Perry Gladstone CriscoButt) .
So the economy was not growing and it required capital inputs according to economic principles, and that is where your fabled billion comes in. You need to spend it to make it.
It really doesn't matter who's pocket the initial investment ends up in, as long as it is generating economic activity.
If you recall, Hubigetty tried to diversify the economy with his "Third Pillar" platform along with the first equality referendum, only to be defeated at the hands of the PLP (Pernicious Lascivious Perverts) and came to the realisation that you can't make a silk purse out of a sow's ear with the human capital available to him thanks to the education policies of said PLP.
So, the only way to invest in GDP growth, was the tired old chestnut of tourism. PLP Bahamians were useless at math and science and learned stuff, but they could be taught to pull da curtain, sweep da floor and take da bags out to da taxi.
Anything else in trying to paint Hubigetty with the Baha Mar debacle, is pure sophistry on your part, and I think that you are intelligent enough to know that.
Fweddie has stated that he thinks that his fellow Bahamians are low fences and for all I know you might even be Fweddie. However the PLP techniques of shifting blame and such that work so well to confuddle up the PLP supporters, doesn't work here.
The difference between the law partners, is that one is a brain dead zombie surrounded by thieves & cutthroats, and the other is a bullheaded patriot surrounded by minions toting cut hip from his wrath.
banker says...
There are lies, damn lies and statistics.
Here are some statistics that jump out at me. For the past few quarters, the measure of tourism cherry-picked by the economics pundits was room revenue. That is the total monies collected from all tourism room rentals.
If you have a declining number of rooms rented, but you raise the price per room, you can show a positive increase in room revenue, in spite of the fact that you have had less visitors. This is what the Central Bank has been doing.
Raising the price per room is a double-edged sword, because it drives the number of room rentals even lower due to price shopping for rooms in cheaper destinations. So it has caught up to us. It is time to pay the piper. When room revenues decline, that means that room rentals have declined so much, that it shows a decrease in total revenues, and no amount of price-jacking can compensate for that.
Another notable statistic, is in the huge increase in domestic interest rates. What this means is that in order to sucker people into buying government bonds (a way to borrow money for the government without going to the banks), it gives an interest rate that is significantly higher than other bond issues or even bank savings. It has to do this in order to attract <strike>suckers</strike> buyers of the bonds. So it is spending more to service new debt.
And finally the third item of interest is the statistics of the improvement of non-performing loans. Non-performing mortgage and loans fell by 27.3 million dollars. That is not good news, because what has happened is that the institutions holding those loans, have sold them off on pennies on the dollar, and hence they can take them off the books. But they still have lost that money and that will eventually show up in the profit/loss columns.
As Mr. Hartnell said, there is economic gloom enveloping the country.
On Tourism ‘softness’ exposed with 7% room revenue fall
Posted 6 July 2016, 1:12 p.m. Suggest removal
banker says...
Oh man ... why does he say those stupid things? Doesn't he know that sovereign debt is not extended by many institutions without a Moody's rating? It is a huge red flag to international lenders.
On 'Fire Moody's if Bahamas is given a downgrade'
Posted 6 July 2016, 12:50 p.m. Suggest removal
banker says...
Dunno and don't care. Maybe Pindling was off on his many nightly walking jaunts to do some hunting. He was an AC-DC fan.
But speaking of hitchhiking, I used to give Mr. Farrington, the old dance teacher rides around Nassau Town. He used to hitchhike on East Bay Street often spending the nights talking to the security guard at the rat-infested wharf at end of Deveaux Street. I think that his first name was Hubert. I was surprised to learn that he in fact was a famous Bahamian dancer.
He was a bit off his marbles and not entirely compos mentis, and he used to lecture me about the sins that IBM and big business wrought on the world (why he had it in for Felix and the boyz on Collins Avenue one never knows).
However he was run down with a car on the verge, and his noggin was smashed to pieces and it was a hit-and-run murder, and someone has the sin of taking the life of a wandering, half-crazy man on their soul. And the po-po did nothing because he was just an old man who was half crazy, running around town in his slippers, lecturing folks on the victimization of capitalism -- Comrade.
On Bahamas facing Moody's downgrade threat in two months
Posted 5 July 2016, 10:27 p.m. Suggest removal
banker says...
Plan to save the Bahamas:
1) Default on the national debt
2) Appoint an offshore judge to re-structure the debt with cents on the dollar
3) Immediately after the default, dollarize the economy
4) Entirely computerise the civil service
5) slash the civil service by 65%.
6) Divest BahamasAir
7)Privatise ZNS
8) Declare the webshops illegal and freeze and seize the assets of the perpetrators
9) Empower a special prosecutor to jail all government corruption since Independence and seize those assets for the treasury
10) Modernise the legal code, do an upgrade from BananaRepublic 1.0 to Civilised 1.0
11) Change the constitution for gender equality
12) Tax the churches
On Don’t make Moody’s a ‘political football’
Posted 5 July 2016, 1:56 p.m. Suggest removal
banker says...
Another blind Cabinet minister bought and sold in the pockets of cronies. Sighhhh.
On Minister to activists: Don’t deny us jobs
Posted 5 July 2016, 1:49 p.m. Suggest removal
banker says...
I don't mind blunders -- that is part of the human condition, and if someone fails while trying for a noble cause -- we all do that in our journey of Life. But the unforgivable is the criminal, and that describes every PLP government that this archipelago in the sun has ever known.
I understand that you are a PLP apologist, and nothing said or done, or even if your brain was seared in the crucible of Truth, nothing will excise the cult 666 PLP chip in your brain. You probably benefited monetarily while the rest Bahamians wallowed in the trough of the disenfranchised, consigned there by the very people that they elected to uplift them.
We could have had a much more enlightened and prosperous Bahamas if that Jamaican-born Haitian named Pendelaine never set foot on our soil.
On Bahamas facing Moody's downgrade threat in two months
Posted 5 July 2016, 1:41 p.m. Suggest removal
banker says...
In the land of the blind, the one-eyed Jack is King. His finance minister Sir William Allen delivered the only balanced budget in Bahamian history after the cocaine excesses of Lynden Oscar Swindling.
Hubiggity knew that the economy had to be diversified, and the forces of evil campaigned against it. He gave independence to the Central Bankers only to have the PLP leash them again.
He knew that the economy had to be kickstarted and he did a complete infrastructure renewal after years of PLP neglect.
Put that in your finance pipe and smoke it. Hubiggity was and wasn't many things, but he was a patriot who did the right things with the limited human capital that he had and the mafia criminality of the opposition that he faced.
Diverting conversation by asking other questions -- you too are guilty of the sins that you accuse others of. You have eyes but fail to see and ears but fail to hear. Pity. The Bahamas could have used more patriotic voices while Swindling was tearing apart the very social fabric of what made Bahamians wholesome -- the Truth.
On Bahamas facing Moody's downgrade threat in two months
Posted 5 July 2016, 7:24 a.m. Suggest removal
banker says...
Is this the mysterious bullets-in-the-bag at the airport guy?
I would ask Mr. Bostwick Number 2 (ask any child what number 2 is) where Bahamians would get the capital to own the industries. We have a non-convertible currency, exchange controls, limits on exchange of funds, and no commercial and merchant banks to handle the business. In addition, we do not have a credit bureau, so businesses cannot float their paper to finance their activities. BISX is a moribund joke that harbours international swindlers and thieves (Brown, Davis, Bethel et al) making large scale Bahamian ownership impossible.
Bostwick #2 is deeply mistaken if he thinks that Bahamian compliance officers and investment managers involved in discretionary portfolios and fiduciary risk could sell their services elsewhere. A bank's book of business is a closely guarded trade secret and the field is not open to freelancers domiciled in another country.
On Ex-Senator renews call for Bahamian industry ownership
Posted 4 July 2016, 10:19 p.m. Suggest removal
banker says...
My dear Tal, if you knew anything about economics at all, you would be aware of something called "The Solow Model" of economic growth. It is a principle of macroeconomics dedicated to long term economic growth irrespective of business cycle fluctuations.
What Hubiggety was doing, was creating the inputs for GDP growth. The Solow equation: Y = AF(K, L) where Y is is the GDP growth, K & L are the Capital & Labour inputs, F is the functional relationship of economic growth to capital and labour. A is the exogenous parameter related to technology or external factors (in the case of Baha Mar it is negative due to the mental retardation, stupidity, and gullibility of Perry Gladstone CriscoButt) .
So the economy was not growing and it required capital inputs according to economic principles, and that is where your fabled billion comes in. You need to spend it to make it.
It really doesn't matter who's pocket the initial investment ends up in, as long as it is generating economic activity.
If you recall, Hubigetty tried to diversify the economy with his "Third Pillar" platform along with the first equality referendum, only to be defeated at the hands of the PLP (Pernicious Lascivious Perverts) and came to the realisation that you can't make a silk purse out of a sow's ear with the human capital available to him thanks to the education policies of said PLP.
So, the only way to invest in GDP growth, was the tired old chestnut of tourism. PLP Bahamians were useless at math and science and learned stuff, but they could be taught to pull da curtain, sweep da floor and take da bags out to da taxi.
Anything else in trying to paint Hubigetty with the Baha Mar debacle, is pure sophistry on your part, and I think that you are intelligent enough to know that.
Fweddie has stated that he thinks that his fellow Bahamians are low fences and for all I know you might even be Fweddie. However the PLP techniques of shifting blame and such that work so well to confuddle up the PLP supporters, doesn't work here.
The difference between the law partners, is that one is a brain dead zombie surrounded by thieves & cutthroats, and the other is a bullheaded patriot surrounded by minions toting cut hip from his wrath.
On Bahamas facing Moody's downgrade threat in two months
Posted 4 July 2016, 9:59 p.m. Suggest removal
banker says...
>Sounds as if these unfinished projects are part of the chicom's strategy of practicing asymmetrical warfare to gain control over target nations.
You are absolutely correct. Holding the loans forever on unfinished projects is economic warfare. You can't go forward and you can't back out.
On Bahamas facing Moody's downgrade threat in two months
Posted 4 July 2016, 3:47 p.m. Suggest removal