Please understand the man. What
he meant is that Nigerian's are
shy from investing in the real
sector where lives (including
theirs can be touched). You need
to understand how many people
Dangote and the likes are
feeding to comprehend that
merely buying stocks does not
really touch lives as much as
investing in making 'dunlop
slippers'.
Buying stocks is more or less
intelligent gambling but it is very
good for us to buy stocks so as
to maintain the value of our
companies in the eyes of people
any way since a company making
lots and lots of profit does not
really care how much their stock
is valued so far as they bought
50% of it to protect them from
being swallowed from behind
by a warren buffet or 'no
nigerian counterpart yet' .

What Sanusi did nd wat he said
even though wit tears are d
bitter truth, pple lik paddylo can
go 2 hell, does he even
undastand wat it was 4 bank
staffs comin 2 your office nd
homes advertisin share loans
where your 30% equity
contribution was d setup. Let me
xplain d transaction dynamics, u
bring in 30% of d amt u want 2
invest then they giv u 70% u buy
d shares nd they hold it as
collateral nd ask u to sign dat
wen d shares lose 20% of its
current value they sell. Paddy lo
question 4 u, who bears dis 20%
loss? If not d unsuspectin
investor who was tricked nd
pressurised 2 buy @ even
unrealistic price, or do u rily tink
dat Zenith bank shares were
realistic @ 62naira.

wazobia-ng:

Please lets understand one thing. Creation of wealth is putting your money in the real sector. Like setting up a barbing salon, building a hospital, school, making slippers, building road. If not for the future money to be made but for even the immediate salary that you will pay the workers that will build and manage the business you are setting up. You know how many families are fed with salary from road construction, advert agencies, web development, hospitals, name them. FOR THE AVOIDANCE OF DOUBT, winning a contract is not creation of wealth but implementing the contract is creation of wealth.

So if you buy stocks @ 10 Naira or 40 Naira in the secondary market, how many people have you employed, how many families have you fed. None. Because you just bought the 50k ordinary shares or whatever they call it of the company. But when you buy @ the primary market, especially when it is oversubscribed, some people might still tell u that you have not created any wealth. I wouldn't like to go into that. Buying from the secondary market means buying the same stock which has the same price (50k or 1 Naira as the case may be) in the eyes of NSE at an agreed price between you and the seller, irrespective of how much the seller bought it. Do I really need to go on to make the two arguers understand?

Please understand the man. What he meant is that Nigerian's are shy from investing in the real sector where lives (including theirs can be touched). You need to understand how many people Dangote and the likes are feeding to comprehend that merely buying stocks does not really touch lives as much as investing in making 'dunlop slippers'.

Buying stocks is more or less intelligent gambling but it is very good for us to buy stocks so as to maintain the value of our companies in the eyes of people any way since a company making lots and lots of profit does not really care how much their stock is valued so far as they bought 50% of it to protect them from being swallowed from  behind by a warren buffet or 'no nigerian counterpart yet' .

Really guys, shut up and go and make some pure water, raise pigs or something like that.

lelele:

@wazobia-ng

You have raised valid issues, but the issue is that Sanusi did the right thing the wrong way.  I guess he just wanted to be unnecessarily popular. To think that five banks were grossly affected but he caused panic and unrest amongst investors, directors, shareholders e.t.c. The whole exercise was given too much publicity, he could have cleansed the industry without people outside knowing. That guy didn't even think before acting, people within the banking sector knew what was happening (Inter-bank rates for some bank had gone very high). Sanusi just wanted to be popular, what an idiot.  

Awojobi A:

I can now see clearly why it may be difficult or forever impossible for us to get out of the woods in this ominously dark part of the world. It is sad, pathetic and tragic. Even the blind  knew that there was a lot of rot in our banking sector - how do you explain the unrealistic targets dished out to marketers for which a lot of the females have turned themselves into corporate love-peddlers to meet these 'sacred' targets. These MDs needed to drive deposit mobilisation to such a mad frenzy as that was the only avenue to create 'bad loans' which was written off in due course. Ofcourse, these 'bad loans' were caused by their friends and proxies naturally acting on their behalf. They consequently made good fortune to the extent that 2 of the sacked MDs had over 1,200 exotic houses between themselves scattered in exotic places all over the world.
Even Bill Gates, the erstwhile richest man in the world, has only 2 houses;most of his fortune has been channeled into the Melinda and Bill Gates Foundation and are being used to help poor countries around the world. Warren Buffet, erstwhile 4th richest man, also has 2 houses, but still lives in an old looking mansion that he first bought 40 yrs ago and has only 2 cars!

Meanwhile, the banks of these 2 useless MDs had become technically insolvent with a combined bad debt figure of over N300BN and their hapless marketers running helter skelter like mad men and women trying to meet impossible target so that prima facie the banks will still appear to be meeting the CBN statutory loan to deposit ratio of 40%.Although interest rates are still in double digits, the loans are not even being channeled to the real sector due to the greediness and corrupt tendencies of our bank MDs (which is not also helped by the 'poor' state of the Nigerian nation & several other 'Nigerian factors').  

A Sanusi now comes on board and exposes all these rot which Soludo, no doubt, also saw but he preferred to hobnob with these MDs rather than to go the whole hog of sanitising the system because he did not want to die. The truth is, it is only the person that is ready to die that can clean the Nigerian augean stable. Sanusi was aware of the consequences of his action, but he preferred to damn the consequences. Some of the consequences are what we are now seeing;'', northern agenda'' ''incompetence'' '', sack him'' bla, bla, bla. But the truth is we need a completely radical person, a Sanusi to put us on the straight road if we are ever going to make it as a nation. Let us remember that the US has predicted that there would not be a Nigerian nation anywhere on the map by the year 2020 if things continue like this!

To condemn Sanusi is to condemn the truth and the path of honour. Indeed, I sometimes wonder, if Jesus Christ comes back to the world again, would he not be crucified again? Nigerians, we really need to pray.

davidif:

[size=18pt]HOW THE HECK COULD A GROWN MAN BE CRYING?? I CAN'T IMAGINE TIM GEITHNER OR BERNANKE CRYING.[/size]

davidif:

[size=18pt]HOW THE HECK COULD A GROWN MAN BE CRYING?? I CAN'T IMAGINE TIM GEITHNER OR BERNANKE CRYING.[/size]

naijaking1:

Our own version of Bernanke is a deeply flawed and conflicted soul, he wakes up every morning unsure about his position as the chief iman of Kano mosque, or the governor of one of Sub-Sahara Africa's largest economy.

Where else in World would the governor of the central complaint about people making profits from stock trade? Stock trade, yes stock trades Only in Nigeria.

Thank God, the profit I made from AT&T, Google, and Coca-cola stocks are not within his reach.

Our own version of Bernanke is a deeply flawed and conflicted soul, he wakes up every morning unsure about his position as the chief iman of Kano mosque, or the governor of one of Sub-Sahara Africa's largest economy.

Where else in World would the governor of the central complaint about people making profits from stock trade? Stock trade, yes stock trades Only in Nigeria.

Thank God, the profit I made from AT&T, Google, and Coca-cola stocks are not within his reach.

paddy_lo:

[b]Frankly the dude is just a disappointment. . .Playing to the gallery is not the same as running a sound economy

Right now Sanusi should be thinking of policies that will,deepen our capital markets

He should be studying how to introduce derivatives based on equity,interest rates,exchange rates and so on so that Nigerian banks can effectively hedge their risks

He should take a look at thailands,singapore,malaysia,south Africas,even Kenyas stock market trades options on exchange rates and other stock and commodities

He should be thinking of how to set up a local commodities exchange to help farmers sell their goods more efficiently
Hell even Ethiopia has set up a new commodity exchange for farmers

Instead he is on t.v everyday lamenting and crying. . .

The people that support him sadly dont know any better
They think being a populist is the same as actually sitting down and performing

After Soludo,the CBN act gave a lot of powers to the Central bank Governor
Some of the things i mentioned above,he can conceptualize them and have them up and running in less than 1yr

The problem is that u cant give what u dont have. . if Sanusi is not intellectually sound enough to even think big then how do we move forward?
Its a sad situation really and i hope he resigns [/b]

paddy_lo:

[b]ETHIOPIAN COMMODITIES EXCHANGE

The Ethiopia Commodity Exchange (ECX) is a new initiative for Ethiopia and the first of its kind in Africa. The vision of ECX is to revolutionize Ethiopia’s tradition bound agriculture through creating a new marketplace that serves all market actors, from farmers to traders to processors to exporters to consumers. The ECX is a unique partnership of market actors, the Members of the Exchange, and its main promoter, the Government of Ethiopia. ECX represents the future of Ethiopia, bringing integrity, security, and efficiency to the market. ECX creates opportunities for unparalleled growth in the commodity sector and linked industries, such as transport and logistics, banking and financial services, and others.

ECX assures all commodity market players the security they need in the market through providing a secure and reliable End-to-End system for handling, grading, and storing commodities, matching offers and bids for commodity transactions, and a risk-free payment and goods delivery system to settle transactions, while serving all fairly and efficiently.

ECX creates trust and transparency through aggressive market data dissemination to all market actors, through clearly defined rules of trading, warehousing, payments and delivery and business conduct, and through an internal dispute settlement mechanism. ECX provides market integrity at three important levels: the integrity of the product itself, the integrity of the transaction, and the integrity of the market actors.

The Ethiopia Commodity Exchange (ECX) commenced trading operations in April 2008. ECX has invited membership of the agricultural and trade industry.

The Ethiopian Commodity Exchange was started to benefit and modernize the way Ethiopia was trading it’s most valuable assets, it’s commodities. Ethiopia needed a change from the traditional means of trading to better support the needs of all those involved in the trading and production.

Before ECX was established agricultural markets in Ethiopia had been characterized by high costs and high risks of transacting, forcing much of Ethiopia into global isolation. With only one third of output reaching the market, commodity buyers and sellers tended to trade only with those they knew, to avoid the risk of being cheated or default. Trade is done on the basis of visual inspection because there was no assurance of product quality or quantity, this drove up market costs, leading to high consumer prices. For their part, small-scale farmers, who produce 95 percent of Ethiopia’s output, came to market with little information and are at the mercy of merchants in the nearest and only market they know, unable to negotiate better prices or reduce their market risk.

ECX is developing a new method of exchange and a safer one for all who trade on it.

A marketing system that coordinates better, that links faster, and that protects the interests of both sides of the trade. It is time for a marketing system that is transparent, efficient, and innovative, that will take Ethiopian agriculture into the new Millennium. Ethiopia, once a commercial trading hub in antiquity linking markets of East and West, can again claim a place in the global market arena.

The Ethiopia Commodity Exchange, (ECX), is a marketplace, where buyers and sellers come together to trade, assured of quality, delivery and payment. The vision of ECX is to transform the Ethiopian economy by becoming a global commodity market of choice. ECX’s mission is to connect all buyers and sellers in an efficient, reliable, and transparent market by harnessing innovation and technology, and based on continuous learning, fairness, and commitment to excellence. [/b]
http://www.ecx.com.et/

What

^^^^^^^Cretin, I suppose you haven't heard of the Abuja Commodity Exchange. Internet opinion experts and their arm chair solutions to the problems of Nigeria. Sanusi knows our problem and he's said so, we need power and freedom from these rats feasting on the fabric of our economy.