How do you determine Credit Worthiness?
With a good credit rating does it mean you will not default?
A credit history will allow your creditors to assess your risks,
And charge you an appropriate interests,
But it will never determine in future if you will not default.
So what is the use of Credit Ratings?
The ability to assess your risk profile,
Your risk appetide so to be able to determine the costs involved,
The cost of borrowings.
Does a poor credit ratings mean a higher cost of borrowings,
Or your access to funds is limited?
How does your creditor understand your credit standing?
Do banks really study your risks involved?
How to limit risks and maximise returns?
In a liquidity market, how to limit NPL?
How to control the inflow of hot money?
Maximising growth and controlling inflation.
In the New Economy, how to maximise capital?
Do we really need to recapitalise markets?
How to reach equilibrium where demand = supply for maximum profits?
Is the poor denied the access to funds?
How do we correct this perception?
How do governments balance their budgets?
How do we get out of this financial turmoil?
Do we really have to depend on the FEDs?
Will the USA have a balanced budget and bring confidence to the markets?
What can the IMF do to instill confidence?
The fundamentals are still sound,
But there is a lack of confidence in the markets,
What must we do?