Bankruptcy Up, Liquidation Up, Bank Profit Up. Fair or not Fair?

Bankruptcy Up,

Liquidation Up,

Bank Profit Up.

Fair or not Fair?

Over one year, the interest rate has increased from nearly 0% to 5%. This is due to external factors, the Federal Reserve.

So, this is fate. Singapore cannot do anything to prevent high interest rates in the US. Things happen quickly and Singaporeans have to face the challenges.

What will the government do? Oh! It is affordable, bearable and blames bad luck, external factors.

Ordinary Singaporeans suffer from higher interest payments, yet the banks are happily receiving the extra income from heaven.

Fair or not fair. We have social contracts, we also respect commercial contracts to pay higher interest payments. People and companies, not able to pay loans and interest payments, can file for bankruptcies or liquidations.

Banks based on loan arrangements or interest terms, need to do nothing and just sit there to collect money. Wow! Is this a free lunch? Rules of law say borrowers must pay even if the interest rate goes up.

Free lunch will sooner or later stop. Banks realise interest collections have reached the peak. When there are more bankruptcies, more company liquidations, the economy will slow down and bad loans will increase.

Besides cost of living support, will It be too late to save the individuals and small businesses?

Comments

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