Money Money Money
So the government might waive all debt. People are demonstrating outside the parliament building in support of it.
I’m kind of neutral about it. But hey I’m just 20 years old and don’t know a thing about this issue. I don’t even have a credit card!
I know enough to feel like it could be a good thing and also a bad thing. It’s great that it would relieve financial stress on many people. But I heard the total amount of debt in Kuwait is 3 million KD 1.2 billion KD. Therefore, this would cause inflation so the cost of everything will go higher and that’s not good!
Also, I think if this were to go ahead only loans that were taken before June 30 would be waived. Because I think it’s despicable what many people are doing ever since news of this issue came out. People are taking loans just because they’re confident that they won’t ever pay it back. Sick people.
I just wish more important issues be discussed. Like giving Bedouns citizenship or amending a law so that non-Kuwait children of Kuwaiti mothers be granted citizenship as well. These would be the first two things I would pursue if I was ever elected.
December 6th, 2006 at 11:12 am
Waiving debt would be the most ignorant, uncivilized and catastrophic move any government has done in Kuwait so far. Besides playing havoc with the economy in more aspects than one could even begin to contemplate, the mind boggles at how Kuwaitis actually consider their country to be their own personal ‘estate’! It’s a country.. a HOMELAND for crying out loud! And one with a DEPLETING single source of income!! How people can think of nothing else but milking it dry as fast and as much as they can just never ceases to amaze me. Allah yaster and the voice of reason of the minority ultimately prevails.
December 6th, 2006 at 10:13 pm
Sa7 lsaaaaaaaaaaanich sugar….
and I like that security word!! ay sahy
December 7th, 2006 at 2:25 am
The Kuwaiti (yeah, and the others) government is running an embarrassing surplus. Repaying the debt is probably not meant to relieve the needy, but rather to improve the Banks’ positions.
While it may be wrong from a behavioral perspective, when did Kuwaitis behave rationally ? (I take liberty with generalizations, please forgive).
The regulators (central bank? or whatever) might have even suggested this.
BTW KWD3 million sounds unreasonably low. You sure it’s not 1,000 times as much ?
December 7th, 2006 at 10:34 am
shorof, yes i kind of thought of that too.. this issue was so randomly brought by the MPs..
Deem, hehe ;P
3obad, its 1.2 billion KD.. i corrected it.. but how would the banks take this as an advantage.. please explain cuz i know nothing of economics ;P hehe
December 7th, 2006 at 3:06 pm
The banks would just LOOOOVE this because a) it would pay off bad debts that the banks were having trouble collecting and b) because they could then turn around and start giving out NEW loans with NEW interest after having wiped the slate clean! Also.. a surplus is never a problem. In Kuwait’s case a surplus is just what it needs to develop more and more alternative sources of income for the days when oil will be finished or obsolete if a new, cheaper source of energy is discovered (as it most certainly will be eventually). That is, if Kuwait and Kuwaitis consider this to be a country and would like to see it flourish for centuries ahead rather than just the few years it takes them and their children to go on spending sprees at its expense!
December 7th, 2006 at 11:21 pm
A couple of days ago there were brochures spread with every newspaper by the Kuwaiti Economics Society, it had a brief of what would happen if the government agreed on dropping all debts. All of the terms on those brochures make sense. However, a lot of people have disregarded the simplest term of which dropping them debts will only cause more harm than good, and no justice will be accomplished by that action.
December 8th, 2006 at 2:46 am
shorof, so ur saying that the government PAYS for the debts? as in gives the money owed to the banks??? i thought that waiving the debt would mean that it would be like the person never even took the loan! well i guess that makes sense.. its not the banks’ fault.. wow.. so they would really love it..
MAC, can u please scan that brochure for me? or post it or something..
the problem with kuwaitis is that we are so self-centered that it isnt funny.. we genuinely do not care about anyone but ourselves.. that really needs to change.. but i feel that the only way that will happen if something really bad causes us to rethink our priorities and stop putting ourselves first and the rest of the country waaaaay down in the list..
p.s. i aint generalizing, obviously there are many kuwaitis who are not like that.. but they’re not enough..
December 8th, 2006 at 9:34 am
I will look it up for you.
December 8th, 2006 at 11:59 am
I think they’re not going to do this coz some ppl don’t have loans so how’ll they compensate them…although if u compare the debts with the fuel income its nothing…piece of cake…anyways no one is satisfied….i hope they’ll do it coz i’ll have the chance to get new loans more incentive for me…..:)
December 8th, 2006 at 3:49 pm
MAC, thanks
Maze, it might be a big deal but if it does go through it would mean that we can pretty much do anything we want as long as we continue to play with the government and they comply with our ridiculous requests
December 13th, 2006 at 11:46 am
I work at a bank in Kuwait and i know what is going on. Everyone is talking extreme loans and end up investing in the stock market expecting to make millions in no time. They end up losing everything and selling all they have including their homes and end up with nothing. The stock market is greatly abused here and has ruined many lives and destroyed many homes. I have heard of many of the locals hoping another “Saddam” incident would happen so that all debts are waived. If the government waives their loans, then they will think its ok to borrow money and lose it cos the government got them covered. The government should not accept to their demands. You know what they say “give a mouse a cookie, he will come back for milk” (Harrison Ford, Air Force One:P)
Btw, its my first time here and I like ur blog
So i added u on my blogroll, lots of other great blogs there too.
Cheers!
December 17th, 2006 at 4:41 pm
Sorry snooks.. I couldn’t find it for you.
December 21st, 2006 at 7:45 pm
no probs bro.. thanks for trying