Friday, September 24, 2010

Let the buyer beware

THE term Caveat Emptor is a Latin phrase used in economics, which means "let the buyer beware'. The reasoning behind this philosophy is that the ultimate protection for market transactions is the responsibility of the buyer. This I think is the real essence of the protection in market economies, as one can never truly provide legislation to protect the buyer against every possible infraction by sellers.

Last Monday I was a presenter at a regional conference on banking and credit put on by Consumers International in Barbados, and funded by the IDB. I think it was a very productive seminar, with much discussion on some of the issues that consumers face, and ultimately some of the challenges that lead to market failures. The conference delegates discussed ways to improve consumer protection in relation to the predatory banking practices in the Caribbean.


Banking practices
Ironically the day after the conference ended the Business Observer published an article titled "Jamaican banking region's worst". At first glance it would seem that the World Bank report was saying that Jamaica's banks were the worst in a group of bad banks, but when one reads further it actually shows that Jamaicans embrace banks less than other territories in the region. It showed that Jamaica had the lowest penetration of loans and deposits per 1,000 adult population count.

This is so although there are many branches of the various commercial banks scattered across Jamaica. I believe that there are explanations such as the greater use of instruments through securities dealers and the tendency for many to engage in community-based banking, referred to as "partner".

Whatever the reason, however, one thing that cannot be discounted is the fact that the Jamaican banks are predatory in their pricing towards consumers. Since they are no longer able to make money from the easy pickings of GOJ securities, they have now turned on the hapless consumer who is charged for even thinking of making a withdrawal, or deposit, or even thinking. Such is the nature of Jamaica, where, as a docile bunch of people we allow politicians, banks, and everyone to step all over us in the name of harmony. I would much rather say we dont want to stand out from the crowd.

In other progressive countries, such as the US we all aspire to reach, consumers are a belligerent bunch of people who understand the real meaning of the term Caveat Emptor. So whether it is their politicians, banks, or retailers they give them a piece of their mind when they feel shafted. And in those progressive countries they are supported by the media, rather than wallowing in the alleged misdeeds of others at the drop of a hat.

The fact is that the only way for true market economy development and growth is through consumer development. The problem in the region is that we have a tendency to regulate everything in the name of protecting our poor citizens, who cannot do a job of protecting themselves as the slave mentality still permeates the society. So we must ensure that everything government touches is biased towards welfare, that is, giving a man a fish rather than teaching him to fish.

So for example, education is always a favourite topic for politicians who profess that no one has to pay for education (even if it's just $10,000 or $20,000 per year) but they don't say where the funding will come from.

Here is another example of over-regulation: at the end of the mid-90s financial crisis in Jamaica, regulations were introduced to prevent the recurrence of the events leading to the crisis . In my own view, we went too far and had too much regulation, because we had to protect the naivety of the Jamaican population. The result, I believe, is that the over-regulation stifled capital innovation and development and may have contributed, in this way, to the rise of the Ponzi culture.

Market progress
One may argue that at least our financial system was not impacted negatively by the recent crisis, but then again we did not benefit from the growth before the crisis, and it is a well known fact that markets never move in a straight line as market progress is always tainted with pullbacks, or corrections. But always in the end the net effect is progress. This is the nature of the market economy, that market players overreach, and by doing so create bubbles along the way and there is consequently always pullback.

The irony is that the extent of the recent global financial crisis was caused by the regulators: contrary to the belief that it was the fault of the banks, the crisis (bubble) actually started in the Bill Clinton era, where the rules at Fannie Mae and Freddie Mac were relaxed to allow for the toxic mortgage-backed securities to seem like gold. To support the home expansion, Alan Greenspan reduced interest rates to 1 per cent, and to put the icing on the cake the rating agencies gave these toxic securities AAA rating. All the banks were doing was packaging the securities endorsed by the Federal Government and the ratings agencies. But such is the nature of the short-term memory of people where they will always only remember the last bad act, rather than the millions of good ones before.

Similarly in Jamaica, it was the fiscal policy of high interest rates that led to the financial crisis we faced. The fact is that banks are nothing more than market players trying to sell a product — money — and they will always seek the highest price if the market allows it. The call therefore to crucify the banks (for doing a market function) with regulations is nothing more than an emotional response which has never truly had any long-term benefit. I am the first to admit that the bank's pricing policies are predatory, but the best ways to improve markets are (1) through competition; (2) information; and (3) consumer education.

Any other way will only lead to short-term relief, which simply distorts the market and will lead to another bubble. The bank charges survey that was done by the CAC is one example of what is needed to reduce the charges by the banks, as faced with consumer pressure they were forced to revise down their fees. If we want to see market development then we must give the CAC more resources and regulatory authority over consumer-related issues.

So the emotional arguments about the need to place strict regulations on banks will be nothing more than a futile long-term effort. It seems, however, that human beings are prone to continue making the same mistakes over and over again, as the tendency is always for politicians the world over to play to the cries from the loudest mouth rather than rational reason. I guess politicians are also only market players catering to the demands of their constituents. This is why economic and social progress is always greater in societies with a more educated and aware population, as they know what is best in the long term and place pressure on politicians to represent their ideas.

So it is clear to me that despite the ranting of many who believe banks, politicians, etc. should be muzzled with regulations, if we pursue that path - as a globe - we will only be setting ourselves up for the next round of market failure. And with the efficiency of globalisation, the next one will be worse than what was just experienced. In fact the US is trying to fix the problem with the same policies that caused the problem. So in the end the only true protection against economic and social failure is Caveat Emptor.

80 comments:

Anonymous said...

Great web site you have got here.. It's hard to find high-quality writing like yours nowadays. I honestly appreciate people like you! Take care!!

Review my web page: diet that works

Anonymous said...

Very good blog! Do you have any helpful hints for aspiring writers?
I'm hoping to start my own site soon but I'm a little lost
on everything. Would you advise starting with a
free platform like Wordpress or go for a paid option? There
are so many choices out there that I'm totally confused .. Any recommendations? Thank you!

Also visit my weblog bmr calculator for women

Anonymous said...

Hi there! I just would like to give you a big
thumbs up for the excellent information you have got here on this post.

I am returning to your web site for more soon.

Here is my webpage; bmi calculator for adults

Anonymous said...

Hey just wanted to give you a brief heads up and let you know a few of the images aren't loading properly. I'm not sure why but I think its
a linking issue. I've tried it in two different browsers and both show the same results.

my site: bmi calculator men

Anonymous said...

Terrific article! That is the kind of info that are supposed to be shared around the internet.
Disgrace on the seek engines for no longer
positioning this post higher! Come on over and seek advice from my site .
Thanks =)

Feel free to surf to my webpage ... good diet plans for women

Anonymous said...

Hello, There's no doubt that your blog could be having web browser compatibility issues. When I take a look at your site in Safari, it looks fine but when opening in I.E., it has some overlapping issues. I simply wanted to give you a quick heads up! Besides that, great site!

my webpage perfect waist to hip ratio

Anonymous said...

I enjoy what you guys are up too. This type of clever work and coverage!
Keep up the fantastic works guys I've added you guys to my own blogroll.

Here is my weblog: chapter 7 bankruptcy florida

Anonymous said...

Hey I know this is off topic but I was wondering if you knew of any widgets I could add to my blog that automatically tweet my newest twitter updates.
I've been looking for a plug-in like this for quite some time and was hoping maybe you would have some experience with something like this. Please let me know if you run into anything. I truly enjoy reading your blog and I look forward to your new updates.

My blog Diets That Work Fast For Women

Anonymous said...

Hello i am kavin, its my first time to commenting anywhere, when i read this piece of writing i thought i could also create comment due to this good
post.

My blog post: what is a Graduate certificate

Anonymous said...

Hey! Quick question that's totally off topic. Do you know how to make your site mobile friendly? My web site looks weird when viewing from my apple iphone. I'm trying to find a
template or plugin that might be able to correct this problem.
If you have any recommendations, please share. Thanks!


Here is my web blog ... online graduate certificate programs

Anonymous said...

Nice post. I used to be checking continuously this weblog and I'm impressed! Very useful information specially the closing section :) I take care of such info much. I used to be looking for this particular information for a very lengthy time. Thanks and good luck.

Here is my web-site :: raspberry ketones diet

Anonymous said...

Hello there, just became alert to your blog through Google, and found that it's really informative. I am going to watch out for brussels. I will appreciate if you continue this in future. Many people will be benefited from your writing. Cheers!

Here is my homepage - resting metabolic rate calculator

Anonymous said...

My family every time say that I am killing my time here at web, but I
know I am getting experience all the time by reading thes fastidious articles.


Have a look at my homepage healthy diet plans

Anonymous said...

Hello there! Do you know if they make any plugins to help
with SEO? I'm trying to get my blog to rank for some targeted keywords but I'm not seeing very good success.
If you know of any please share. Many thanks!


My site; raspberry ketone Reviews

Anonymous said...

We stumbled over here coming from a different website and thought I might
as well check things out. I like what I see so now i'm following you. Look forward to checking out your web page repeatedly.

Review my website bmi calculator for adults

Anonymous said...

Excellent article. Keep posting such kind of info on your blog.
Im really impressed by your site.
Hello there, You have done a fantastic job.

I will definitely digg it and in my view suggest to my friends.
I'm confident they'll be benefited from this web site.


Take a look at my page bmr calculator to lose weight

Anonymous said...

Great delivery. Great arguments. Keep up the great spirit.


Feel free to visit my blog; airplane simulator games

Anonymous said...

Hi there, its fastidious article on the topic of media print,
we all know media is a impressive source of facts.



Here is my blog post; airplane simulator game

Anonymous said...

I'm truly enjoying the design and layout of your website. It's a very easy on the eyes which makes it much more pleasant for
me to come here and visit more often. Did you hire out a developer
to create your theme? Outstanding work!

Feel free to surf to my blog; Registry cleaner

Anonymous said...

Quality articles or reviews is the crucial to interest the viewers to pay a quick visit the website, that's what this web page is providing.

Feel free to visit my blog post - healthy diet

Anonymous said...

Hello! I know this is somewhat off topic but I was
wondering which blog platform are you using for this site?
I'm getting tired of Wordpress because I've had issues with hackers and I'm looking at options for another platform. I would be great if you could point me in the direction of a good platform.

Here is my site ... healthy diet Plans

Anonymous said...

Amazing! Its truly remarkable piece of writing, I have got much clear idea concerning from this post.



Feel free to visit my web page ... ways to lose weight fast

Anonymous said...

Terrific article! That is the type of info that are meant to be
shared across the net. Shame on Google for not positioning this put up higher!
Come on over and talk over with my website .
Thanks =)

Take a look at my web blog :: easy diets that work

Anonymous said...

When I originally commented I clicked the "Notify me when new comments are added" checkbox and now each
time a comment is added I get several emails with the same
comment. Is there any way you can remove people from that service?
Thanks a lot!

Feel free to surf to my web site - diets that work fast for women

Anonymous said...

I am truly happy to read this weblog posts which carries lots of helpful data, thanks for providing these kinds of statistics.


My web page: Diets That Really Work

Anonymous said...

Hi, I do think this is an excellent site. I stumbledupon it ;) I may come back once
again since I book marked it. Money and freedom is the
best way to change, may you be rich and continue to guide others.



Feel free to visit my web page ... easy diets that work

Anonymous said...

Great post.

Feel free to surf to my blog - topics for research paper

Anonymous said...

Highly descriptive blog, I loved that bit. Will there be a part 2?


Feel free to visit my page local directory company

Anonymous said...

Magnificent goods from you, man. I've understand your stuff previous to and you are just too wonderful. I actually like what you've acquired here, certainly like what you're saying and the way in which you say it. You make it entertaining and you still care for to keep it sensible. I can't wait to read far more from you.

This is actually a great website.

My website research process paper

Anonymous said...

Hey There. I discovered your weblog the use of msn.
This is a very well written article. I'll make sure to bookmark it and return to read extra of your useful info. Thanks for the post. I'll certainly comeback.


Feel free to surf to my web site free yahoo white pages business search

Anonymous said...

You really make it seem so easy with your presentation but I find this matter to be actually something that I
think I would never understand. It seems too complex and very broad for me.

I'm looking forward for your next post, I will try to get the hang of it!

Here is my web page: acoustic guitar a chord

Anonymous said...

I every time emailed this web site post page to all my
contacts, for the reason that if like to read it next
my links will too.

my website acoustic guitar chord

Anonymous said...

naturally like your website however you need to check the
spelling on quite a few of your posts. Many of them are rife with spelling issues
and I to find it very troublesome to tell the truth nevertheless I'll certainly come again again.

My blog; http://sugarforum.jp/mediawiki/index.php?title=利用者:MahaliaBa

Anonymous said...

Thanks for finally talking about > "Let the buyer beware" < Loved it!

Here is my webpage: Rvtl Anti Aging Solution

Anonymous said...

Attractive section of content. I just stumbled upon your
website and in accession capital to assert that I get in fact enjoyed account your blog posts.

Anyway I'll be subscribing to your augment and even I achievement you access consistently rapidly.

Review my site - diet That works

Anonymous said...

Thank you, I've just been searching for info about this topic for ages and yours is the best I've came upon till now.
However, what about the bottom line? Are you certain in regards to the source?


Stop by my homepage - upgrade computer charlotte nc

Anonymous said...

Hi Dear, are you actually visiting this website on a regular basis,
if so after that you will without doubt obtain good knowledge.


my web blog :: list of local directory listing

Anonymous said...

Wonderful article! That is the kind of info that should be shared around the web.
Shame on Google for no longer positioning this submit higher!
Come on over and visit my website . Thanks =)

Feel free to surf to my website :: Dermarose

Anonymous said...

Hello to every one, the contents existing at this web site are truly amazing for people
knowledge, well, keep up the good work fellows.

Look into my homepage: Wrinkle cream

Anonymous said...

I rarely create responses, but after looking at through a few of the responses here "Let the buyer beware".
I do have a couple of questions for you if you don't mind. Is it only me or do a few of the remarks appear like they are left by brain dead visitors? :-P And, if you are posting on other places, I would like to keep up with you. Could you make a list of the complete urls of your shared sites like your linkedin profile, Facebook page or twitter feed?

Review my blog post - find a real estate agent

Anonymous said...

This paragraph is truly a good one it helps new the web viewers, who are
wishing in favor of blogging.

my web site - directory of real estate resources

Anonymous said...

Greetings! This is my first visit to your blog! We are a collection of volunteers
and starting a new initiative in a community in the same niche.
Your blog provided us valuable information to work on.
You have done a extraordinary job!

My web blog ... muscle supplement

Anonymous said...

Good day! This is my first visit to your blog!
We are a group of volunteers and starting a new project in a community in the same niche.

Your blog provided us beneficial information to work on.
You have done a wonderful job!

Feel free to visit my blog Online Loans

Anonymous said...

What i do not understood is in truth how you're not actually a lot more well-favored than you may be now. You're
so intelligent. You know therefore considerably in the case of this subject, made me
individually imagine it from so many varied angles.
Its like women and men aren't fascinated except it is something to do with Girl gaga! Your individual stuffs excellent. All the time maintain it up!

Take a look at my web blog - Zinn collection review

Anonymous said...

I am not sure where you are getting your information, but great topic.
I needs to spend some time learning much more or understanding more.
Thanks for excellent information I was looking for this information for my mission.



My website whitepages business

Anonymous said...

I absolutely love your site.. Pleasant colors & theme.

Did you create this site yourself? Please reply back as I'm hoping to create my very own blog and want to find out where you got this from or just what the theme is named. Thanks!

My homepage - Free bodyuilding Supplements

Anonymous said...

Hello! This post could not be written any better! Reading through this post reminds me of my good old room
mate! He always kept chatting about this.
I will forward this post to him. Fairly certain he will have
a good read. Many thanks for sharing!

Feel free to surf to my blog - USA real estate agent directory

Anonymous said...

Does your blog have a contact page? I'm having problems locating it but, I'd like to send you an email.
I've got some creative ideas for your blog you might be interested in hearing. Either way, great website and I look forward to seeing it grow over time.

Here is my web site: upgrade computer charlotte nc

Anonymous said...

Informative article, just what I was looking for.

my homepage Ultra Slim Patch Diet

Anonymous said...

Nice post. I learn something totally new and challenging on sites
I stumbleupon every day. It will always be useful to read content from other
writers and practice something from their web sites.

my webpage ... Buy test force xtreme

Anonymous said...

I blog frequently and I seriously thank you for your content.
The article has truly peaked my interest. I will book mark your website and keep checking for new information
about once per week. I subscribed to your RSS feed as well.



Visit my homepage - local small buisness directory and white pages

Anonymous said...

Very shortly this web site will be famous amid all blogging and site-building visitors,
due to it's pleasant articles or reviews

My web site ... white pages local listings

Anonymous said...

Good article! We will be linking to this particularly great content on our site.
Keep up the good writing.

Review my blog post - samples of a research paper

Anonymous said...

I read this piece of writing fully on the topic of the difference
of most recent and earlier technologies, it's awesome article.

My website ... computer parts charlotte nc

Anonymous said...

I do not know if it's just me or if perhaps everybody else encountering issues with your blog. It appears as though some of the text within your posts are running off the screen. Can somebody else please comment and let me know if this is happening to them too? This may be a problem with my browser because I've had this happen before.
Thanks

Visit my weblog waist to height ratio

Anonymous said...

Hi! Do you use Twitter? I'd like to follow you if that would be ok. I'm undoubtedly enjoying your blog and look forward to new updates.


Also visit my site movie forums india

Anonymous said...

Howdy! I understand this is somewhat off-topic however I needed to ask.

Does managing a well-established website such as yours take a large amount of work?
I am completely new to blogging but I do write in my journal daily.
I'd like to start a blog so I will be able to share my personal experience and thoughts online. Please let me know if you have any kind of suggestions or tips for brand new aspiring blog owners. Appreciate it!

My blog post: click here

Anonymous said...

Heya i am for the first time here. I came across this board and I find It truly useful & it helped me out much.
I hope to give something back and help others like you
aided me.

Review my webpage; local business directories

Anonymous said...

You ought to take part in a contest for one of the highest
quality websites on the net. I'm going to recommend this website!

Check out my webpage - Muscle Rev Xtreme Trial

Anonymous said...

I have to thank you for the efforts you have put in writing this website.
I am hoping to see the same high-grade blog posts by you later on as
well. In fact, your creative writing abilities has encouraged
me to get my own website now ;)

Here is my site :: www.essay.com

Anonymous said...

I read this article completely concerning the resemblance of most recent and
earlier technologies, it's remarkable article.

Also visit my web blog ... Acai Juice Benefits

Anonymous said...

I was pretty pleased to uncover this site. I need to to thank
you for ones time just for this fantastic read!! I definitely liked every little bit of it and I have you book marked to check out new information
in your web site.

Also visit my blog - Sytropin

Anonymous said...

It's enormous that you are getting ideas from this piece of writing as well as from our argument made at this place.

Here is my web page :: http://puregarciniacambogiablog.org

Anonymous said...

Hi there, just became alert to your blog through Google, and found that it is really informative.
I am gonna watch out for brussels. I will be grateful if you continue this in future.

Many people will be benefited from your writing. Cheers!


Feel free to surf to my weblog ... Garcinia Cambogia Supplement

Anonymous said...

I read this article completely about the difference of hottest and previous
technologies, it's remarkable article.

my webpage; Test Force Xtreme

Anonymous said...

Incredible points. Great arguments. Keep up the good work.



Here is my homepage: Buy Power Pump XL

Anonymous said...

Fine way of telling, and pleasant paragraph to obtain
data regarding my presentation subject, which i am going to deliver in academy.


Also visit my blog post Pay day loan lenders

Anonymous said...

Appreciate the recommendation. Let me try it out.

Feel free to visit my site - how much should i weigh for my age

Anonymous said...

Remarkable! Its really remarkable post, I have got much clear idea about from this paragraph.


my blog Revitalize Cream

Anonymous said...

Wow, this post is nice, my sister is analyzing such things,
so I am going to tell her.

Here is my webpage :: Revitalize Skin Care

Anonymous said...

Exceptional post but I was wondering if you could write a
litte more on this subject? I'd be very thankful if you could elaborate a little bit further. Appreciate it!

Here is my web-site - Ripped Muscle Extreme Reviews

Anonymous said...

Have you ever considered about adding a little bit more than
just your articles? I mean, what you say is fundamental and everything.
However think of if you added some great photos or video clips to give your posts more, "pop"!
Your content is excellent but with pics and video clips, this website could
undeniably be one of the best in its field.
Awesome blog!

Also visit my webpage: Slim Helper Patch

Anonymous said...

I know this web page provides quality based posts and additional information, is there any other web page
which gives these information in quality?

Here is my blog post :: local small buisness directory and white pages

Anonymous said...

Whats up this is kind of of off topic but I was wondering
if blogs use WYSIWYG editors or if you have to manually code with HTML.
I'm starting a blog soon but have no coding knowledge so I wanted to get guidance from someone with experience. Any help would be enormously appreciated!

my webpage ... advokatska kancelarija

Anonymous said...

Hi superb blog! Does running a blog similar to this require a massive
amount work? I have very little knowledge of computer programming but I was hoping to start my
own blog soon. Anyway, if you have any recommendations
or techniques for new blog owners please share.
I understand this is off subject however I just wanted to ask.

Many thanks!

Stop by my page ... Privatkredit

Anonymous said...

Someone necessarily lend a hand to make severely posts I might state.
This is the very first time I frequented your website page and to this point?

I surprised with the research you made to make this particular put up incredible.
Wonderful job!

my homepage: buy raspberry ketone

Anonymous said...

Nice post. I was checking constantly this blog and I'm impressed! Very helpful info particularly the remaining section :) I take care of such information a lot. I used to be looking for this certain information for a very long time. Thank you and good luck.

Also visit my weblog - dirty grandpa loves to pound a hairy and wet teenage pussy

Anonymous said...

It's going to be ending of mine day, however before end I am reading this enormous piece of writing to increase my experience.

My web page - http://pornharvest.com/index.php?m=2139425

Anonymous said...

Today, I went to the beach with my kids. I
found a sea shell and gave it to my 4 year old daughter and said "You can hear the ocean if you put this to your ear." She placed the shell to her ear and screamed.
There was a hermit crab inside and it pinched her ear.
She never wants to go back! LoL I know this is entirely off topic but I
had to tell someone!

Also visit my website - weight loss and colon cleansing ()

raybanoutlet001 said...

michael kors handbags outlet
nike huarache
jordan shoes
ralph lauren outlet
golden state warriors jerseys
nike roshe
gucci sito ufficiale
reebok shoes
michael kors uk
ugg outlet
2017.7.26