The government is propping up our economy by borrowing. That borrowing will be paid by future generations. If the government didn't prop up the economy then those with assets would lose some of them. You have to have assets or be an investor to be affected by the collapse of the finance firms. I can't see any reason to prop them up.
The government is papering over the cracks and it's costing future generations a lot while the rich get richer still.
Reverse mortgaging is fine as long as the property doesn't end up being owned by an international (including Aussie) bank or multinational investment fund.
"We must fight against tax evasion but also defend the rights of tax evaders, or companies that make mistakes". Silvio Berlusconi in 1996. Who knows if 42% is a correct figure but they netted the tax from US$137 billion in earnings in their last amnesty.
And in answer to Steve Black, John Key and his team seem to trust the owners of finance firms unless they've done something really wrong previously that could be a PR risk. Like Nick Wevers from Government Property Services having been a CEO of Blue Chip before founding Viaduct Capital - and they were still guaranteed at first.
The government guarantee propped up finance firms when they should all have been left to fend for themselves. The investors losing the money they chose to invest seems fairer than all of us paying.
Thaks Andin and Islander for your thoughts.
For Andre's info, babyboomers were born between 1945 & 1960. In ANZ, very few of us are able to access a reverse mortgage - yet. But people like my 83yrold mother ...have every right to choose to do whatever they want within the asset-rich (but income-poor) situation they're in.
I think that we are being made to pay so that the older generations can continue to remain "asset rich". If they all sell their assets off to foreigners when they die there won't be much left for future generations of kiwis. And currently there is no regulation stopping this from happening (which it is). And new reverse mortgage products keep on popping up.
Do you really think that the next generations should pay to prop up wealthy investors with in most cases only a small part of their wealth in finance companies? That's just wrong from my viewpoint.
How many MP's have something at stake here financially through the huge investments in SCF from Pyne Gould Corporation, George Kerr etc?
Paying $1,500,000,000 to a load of South Island farmers and retirees really doesn't seem fair. The average farm price is $3.8 million. The average house price is five times what most younger kiwis can afford etc. Let them swing. The government guarantee scheme is ripping off an indebted younger generation for $6.9 billion on behalf of a wealthy one. That's while they borrow a billion a month from overseas to prop up the property-value driven economy anyway.
In Italy commentators say that 42% of the population are tax evaders and they keep voting berlusconi in because he turns a blind eye to it and legislates so tax evaders get off free. Here the government that is most able to prop up house values and reduce mortgage rates is voted in by most kiwis. The baby boomers are ripping us off. And now they are taking "reverse mortgages" as well to ensure that there is nothing left when they die. ban overseas land sales before we become a tenant nation.
I've also got to wonder how much of the (IMO) blatantly deceptive election ads run in Australia would get past the Broadcasting and Advertising Standards Authorities here
Unfortunately our organisations policing advertising laws are actually very weak in my experience and love to water down their decisions if at all possible. They are really into self-regulation so if there is any way to get the complainant to back down they will take it. We had an opponent lying in their ads to compete with us and it took almost 3 years and 3 different authorities to get them to desist.
Our political parties might not be allowed to run ads predicting what their opposition are going to do if they take power but if they did then Asset Sales would be top of the agenda if I was writing Labour's ads here. In fact the whole Time Warp concept works.
I look forward to meeting you again Jackie and all the best of luck with the diagnosis.
I can confirm that we'll have at least one Skyview there! Yay!
We could set up a Skyview with a twitter feed... apparently Quentin from Pead PR was discussing it with Orcon earlier in the year so we'll see...
I really enjoyed "The Circuit" on Maori TV and its replacement "East West 101" is way cool too.