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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: zamboz who wrote (99715)	4/3/2013 2:57:02 PM
From: Maurice Winn	1 Recommendation Respond to of 219628

Yes, that has been publicized with many people expressing dismay. Even Mish's article was probably read by somebody I know who is not me [he has followed Mish for years]. Said person came up with an idea for a company "Casino Investments Limited" when the NZ government announced they would guarantee depositors to avoid runs on banks. His idea was that the company would get investors, take the money to the casino, put it on red, or 23. If the win came in, the shareholders would be rich. If not, the government would guarantee the depositors funds. So depositors could be rewarded with 20% interest for depositing with Casino Investments Ltd and be sure of the government guarantee. Within a week, somebody in the government must have got wind of our plan. The government said they were NOT going to guarantee all financial institutions after all and limited it to the main banks and South Canterbury Finance and a few favoured friends. Taxpayers lost over a $billion on the South Canterbury Finance guarantee. Investors lost $billions on many financial institutions who did not get guarantees. There are many sad people in NZ now whose old age is looking impecunious. John Key is a money man [and prime minister]. He knows how money works. So in general, nobody was too worried about that idea of giving a haircut to depositors. It was certainly not a big deal in the news - getting a brief run and then being ignored. John Key is right to leave depositors to keep their money with safe institutions who do not invest in the casino. When those financial institutions used to put leaflets in my letter box, I ignored them even though they paid double the interest I was getting at my boring bank. I assumed they were investing in things like the chestnut orchard in Warkworth which was at one time valued at $5.4 million [sold at that price] and which sold at mortgagee sale a year ago for $1.8 million. The orchard does not yet produce anything and I doubt that it will. Sure enough, they were. Depositors and banks in New Zealand might be more circumspect about who they lend their money to and where those banks are lending it. At present, there is a great hope that the bust has gone as property prices in NZ are on the rise. But that's based on interest rates being halved so people can afford a bigger mortgage and the old cliches about getting on the property ladder, property prices always going up, blah blah blah, are resurrected. Meanwhile, NZ is borrowing flat out to pay increasing welfare bills. Admittedly, John Key is holding the line and it's possible things could come right with continued pressure, but the electorate rules and they like bludging. Most people now work for or get benefits from the government, so there is a huge voting base for socialism and welfare. Producers are fleeing to Oz and further afield leaving bludgers here. Mqurice