Thursday, August 16, 2012

50-year home loan, a matter of time

Khaw Boon Wan said the 50-year home loan is a gimmick. It isn't, he was just showing his disdain.

It might not be popular now. UOB will just make it available and wait for the market to come around. This isn't like foodstuffs with expiry date. The bank is only worried about how MAS might react. The bank is in business to make money. It doesn't care about any thing else if it can help it. You want a bank to behave, you have to give it incentives. Personally I think banks must be put on a tight leash especially when the generation of old fashioned bankers depart from the scene. I worry that the young turks taking over are gun slinging cowboys. Unlike murderers, you can't hang bankers when they deserve to die. You cannot trust them with temptations.

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