Comments on: Was Economy Overheated Or Not Understood?

By: Accurate

Accurate — Sun, 01 May 2016 19:23:38 +0000

How many of those tower cranes dotting the skyline in 05-08 were on a Government project? Slow and steady? How about rocket pace doubling of the available office space and the flood of ‘foreign’ accents working on them as being the prime over-heater. Yes plenty of Government waste as the revenue projections beat the forecast every year but add to that rampant private development by every one able to add a room/apt/residence and the delusion that the gravy train never stops. Own it Bermuda – we all bought it.

By: BLOW IN

BLOW IN — Wed, 27 Apr 2016 20:14:25 +0000

OH,a pretend friend, well he is TAX EXEMPT .

By: Larry Burchall

Larry Burchall — Wed, 27 Apr 2016 15:01:28 +0000

Hi Zina,

NANCI is a word/description that I coined and have been using for some time now.

NANCI = NNC = Non Negotiable Costs = Annual Debt Service Cost = Annual interest costs PLUS Sinking Fund pay-in [mandatory 2.5% of loans outstanding].

Once Government has borrowed money, the interest rate and mandatory Sinking Fund contributions become NNC’s = Nanci.

Hope that solves the mystery.

Larry

By: Zina

Zina — Wed, 27 Apr 2016 11:33:06 +0000

Thanks for this analysis. Im not very savvy with the world of economics and mister google hasnt helped. So hopefully you can answer a quick question for me: what is “nanci”?

By: rodney smith

rodney smith — Wed, 27 Apr 2016 02:42:39 +0000

The private schools knew what was going on . Why are the white children not at least experiencing their 40 % unemployment? Somebody had a plan , that did not include us .

By: Swing Voter

Swing Voter — Tue, 26 Apr 2016 16:31:51 +0000

Larry, is there any hope financially for the island or should I start to plan my exit strategy now. Will the BD be worth anything in 2020?

By: Curious

Curious — Tue, 26 Apr 2016 15:45:09 +0000

Most importantly we failed to change our education system to parallel the economy. The education needed for a tourist playground is VERY different from the education needed for a business park.
Until there is a committed push to change the public education system and equip kids with the tools needed to find employment in the business park there will always be a class divide. We will always need to import foreigners to make up the skills that we lack if we can’t provide them ourselves.

By: hmmm

hmmm — Tue, 26 Apr 2016 13:48:42 +0000

Larry please.

Overheating of the economy was done by scurrilous spending, borrowing to spend on infrastructure. Infrastructure that did not and does not create income.

The construction industry was being propped up by a false economy of unsustainable government spending . The construction industry expanded and boomed and it sure as hell busted from direct overheating.

Similarly the growth rate in Government workers was and is unsustainable.

I could go on …. but it is obvious to anyone that the actions of the PLP lead to our economy overheating and us suffering a boom and bust because of unsustainability.

Slow and steady sustainable growth was what was needed. The PLP ignored slow, they ignored steady and they sure as hell stuck their head in the sand, put their fingers in their ears to completely ignore sustainability.

By: San George

San George — Tue, 26 Apr 2016 13:28:12 +0000

Not understood then, not understood now – Quo Fata Ferunt. We have been lucky – better lucky than smart. House prices at 10x annual salaries is dangerous anywhere in the world. Thirty year mortgages on homes in an economy that is at the mercy of foreign capital is dangerous. Bloated civil service adds to the dilemma. Hindsight is not even 20/20 for this economy. The Lord will provide.