LETTER: Bank would be wise to cut rates
An immediate 500 basis point drop could prevent a liquidity trap
Graham Turner, in his eponymous book The Credit Crunch: Housing Bubbles, Globalisation and the Worldwide Economic Crisis describes the debt crisis of the last decade. He also describes Japan’s unsuccessful battle against deflation.
In SA, the government, state-owned enterprises (SOEs) and the consumer are wallowing in debt. Companies on the JSE such as Brait are working to reduce debt from overleveraging acquisitions. At the same time property prices are deflating. The property index continues to fall. Realtors talk of a buyers market. Liquidations are increasing and unemployment mirrors the great depression...
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