Hard News: Meaning well with the money of others
195 Responses
First ←Older Page 1 … 4 5 6 7 8 Newer→ Last
-
This really is a good thing, you know.
It seems we have stumbled across the place where NZers were secretly running an experiment on the Dunning Kruger effectNow they can get treatment....at long last.
-
Its ~0.8% of GDP, all in one hit, and quite geographically concentrated. The most likely result, given how badly people have just been burned and the lingering legacy of the 1987 sharemarket crash, is a South Island property boom. A good time, if you're a dairy farmer, to look for that bigger fool...
That doesn't make sense. People will be getting back what they invested. This isn't creating any additional wealth, it's just all going to come back to the community at once. Many will re-invest it in the bank or other finance company, as long as they can find one covered by the scheme.
-
Apart from feeling sorry for tax-payers in general, imagine how those with investments in Blue Chip, Hanover Finance and so forth feel right about now.... They're basically in the same boat, but were unlucky enough for their investment company to tank a bit early.
-
Hanover fist...
Watson & Hotchin and the Hole in the Ground Gang must be elated that everybody seems to have quickly forgotten about Allied Nationwide Finance going into receivership last week, possibly taking $130 million out of the Govt guarantee scheme - and I wonder if Dave Henderson met the deadline to buy back some of his now Chch City owned properties this week?
Grab your sacks and head back up to the top of the ride... Helter Skelter! -
I am still at a loss as to where the money has gone, or was it just imaginary money to start with?
Where the capital's gone, I think you mean, it didn't grow by much, because most of the loans were invested back into crap like finance companies, rather than improving assets.
Money's a weird thing, there's more of it for everyone if we all give it away all the time, and none of it at all if we all squirrel it away at once. It's strongly reinforcing too, spend when no one else is and go broke, squirrel when every else spends and get left behind.
So while the money spins about extra fast, everyone feels rich and pretends they each could, at any time they want, grab a bigger chunk of that money and hang onto it. But they can't, because they only want to do that when everyone else does, and when everyone grabs hold of their money at once there is no money.
Thus the tragic folly of loaning money based on "future earning potential", real or imagined, as is the current trend. It reinforces the boom-bust cycle even more.
-
"Alarm bells were deafening on SCF woes" says Fran O'Sullivan.
Make no mistake about this.
South Canterbury Finance would not have lasted long without the government guarantee. It was already out of control by mid-2008 as a result of Hubbard's decision to allow his wonder boy manager Lachie McLeod to bet too much of the bank on property investment, over-valued dairy farms and (of course) related party transactions. Not sticking to South Canterbury's knitting was the core mistake.
-
it was already out of control by mid-2008 as a result of Hubbard's decision to allow his wonder boy manager Lachie McLeod to bet too much of the bank on property investment, over-valued dairy farms and (of course) related party transactions.
Perhaps we now have an idea of who the "out of control" manager Mr. Hubbard is referring to in the media today, as he changes tack in his defence of what remains of his reputation.
He really should get his story straight. Either he was done in by the gummint when he could have made all better with a minimum of fuss, or he was sidelined last year by out of control managers and had lost control of his own company.
-
Ian:
Chicken census...
My Mother always told me to never put all my eggs in one basket. Sound advice without a financial advisor in sight.
Shares in a wickerwork enterprise then? If extra baskets are to be a growth industry...
...I wonder if Dave Henderson met the deadline to buy back some of his now Chch City owned properties this week?
Grab your sacks and head back up to the top of the ride... Helter Skelter!As a former roadie for the Basket Cases you probably know a thing or two about the economic variety.
-
lol
-
something wicker this way comes...*
As a former roadie for the Basket Cases...
Willow never, weave come a long way...
They were also known as The Detroit Haemorrhoids (rust never seeps)...
... aah the '70s, I miss those strange days & nights at The Gresham, back when Cashel street
(in Christchurch, I wait...) was pumping and didn't
need revitalising or any extra vibrancy......before Christchurch became the failed state of Parkerstan, with the Kushy Hole of Hendostan
in its midst...But the chickens are coming home to roost, and this election voters will point at the vain, crowing cock-a-hoop Bob Parker and say "Himalaya!"...
---------------------------------------------------------
*well it was Ray Bradbury's birthday last month -
From today's Granny... 'Bad bank' sent another 20 firms to wall
-
Jenni McManus this morning listed some damning causes for concern in Hubbard funds but for the wider economy the all too obvious in hindsight 'insufficient due diligence' by Treasury needs some looking at too.
<Trying to avoid listing government actions not taken justified by lack of funds>
-
3410,
South Canterbury Finance's collapse appears to have been caused in part by rich investors pulling out cash to get below new limits for the government's deposit guarantee scheme.
Trustee Executors regional manager Yogesh Mody said "many investors" with deposits above the $250,000 limit that will apply to the revised scheme from October 12 had been "rearranging" their investments to get below that figure ahead of the deadline.
-
From today's Granny... 'Bad bank' sent another 20 firms to wall
So the firms were in default of their repayments, what was SCF meant to do? Sure, it indicates poor judgement on SCF's part in lending them money in the first place, but should they have waited until the arrears had got even bigger?
-
Yeah, it occurs to me that English was talking last week about saving a couple of million bucks on advisers, when better advice would have saved a billion plus.
Still, most people don't know the difference between a million and a billion.
-
that So and So...
From today's Granny... 'Bad bank' sent another 20 firms to wall
Sound familiar?So Henderson had his hooks in SCF for $20-$30 million, guess none of the $17 million he got from the City Council here went to defray those borrowings...
and I assume some of those bankrupt bars listed are the ones owned by Simon Botherway's brother, Jonathan (also known as Barry)...
but no worries Simon had set Jonathan up in another Hotel though shortlived it seems as Jonathan resigned as director of Springlands Trading on June 29, due to his bankruptcy. it also seems Simon Botherway has links to George Kerr's Torchlight Fund which had money in SCF, all kosher according to Securities Commission counsel... -
-
So I guess the new question for the new economic dawn is how to get investment productive.How do we get investment in to the kind of national expansion that the next generation can enjoy also.
Because this investment system is a donkey. If its attributes were crossed over to the public service it would be called a disgrace.
-
I'll just move this from over Here to over here... (where it will gain further interest)
In reply to Bernard Hickey's question "Dear Allan Hubbard - Please say sorry and thanks"Ryansway (Wellington)
10:59AM Friday, 03 Sep 2010
Forget Allan Hubbard Bernard, he simply took the money others freely gambled and he rolled the dice.The apology owned NZ tax payers should come from John Key and Bill English. They took the decision to use tax payers money for the benefit of a very few, and those few already had the disposable funds available to risk in return for higher interest rates - they hardly needed "bailing out"!
Our Government has rewarded greed, they punish hardship, and they make a mockery of our failing democracy.
The only thing Allan Hubbard has done is make the John and Bill puppet show reveal their true colors. It's a halo of deep blue and arrogance to boot.
This episode in corporate brown-nosing and right-wing back-scratching is a slap in the face of all New Zealanders living below the poverty line. Where is their bail-out when life takes a turn for the worse? They don't get one, instead they are denied fewer benefits of the taxes they contributed every year of their working lives because this National Government is busy handing it over to the rich!
Come to think of it, an apology wouldn't cut it because words are cheap and John Key is full of them.
100+ LikesIt seem Te Heralds "Like" counter only runs to 100 and that is not a big enough number to indicate the number of people, who read comments to Hickey's column, that are sick and tired of the Johnny and Bill puppet show.
-
3410,
Rod Oram on the SFC bailout.
Post your response…
This topic is closed.