Government set to act on finance collapses
Alt Tv/Fleet FM Breakfast News Comment
Government set to act on finance collapses
The Government will consider interim changes to tighten finance company regulations after the latest failure in the sector. Commerce Minister Lianne Dalziel has resisted a kneejerk response to finance company failures but now has asked officials to look for "common threads". The recent failures have left "mum and dad" investors bewildered and angry. The minister said she wanted "to see whether any intermediate steps can be taken to improve the regulatory environment in the interim". Funny isn’t it, when ‘Mum and Dad’ investors (some unkind person might suggest that a euphemism for ‘white’) when some ‘mum and Dad’ investors are hurting we need intermediate steps to improve the regulatory environment in the interim – however at the other end of the spectrum when the Government were looking at loan shark rates some of them charging interest in the hundreds of a the percent and many in lower social economic need (another unkind person could suggest that term is a euphemism for ‘not white’) borrow the money for day to day living, (because relative poverty is actually a lot larger in this country than we want to admit), when the Government was looking at the regulatory environment for lower social economic people and interest rates charged to them by loan sharks, apparently the Government couldn’t do anything, however ‘Mum and Dad’ investors have been fleeced by a bunch of smooth talking cowboys (one of whom still has his luxery car and house) we have to take steps to improve the regulatory environment. Isn’t motivation a funny thing?
posted by Bomber @ 7:58 am
8 comments
8 Comments:
No need for more regulatory control because if people are stupid enough to gamble with there money on higher returns, they should expect higher chance in losing there money.
Advocatus Diaboli
Actually, safeguards have been in place re loan sharks (and yes, even for brown people) for 4 years with the passing of the Credit Contracts and Consumer Finance Act 2003. That law is pretty stringent. I suspect (and the media confirms this) that many of these poorer people (ok, "brown people" Bomber) simply don't read the contract, don't ask how much total interest is to be paid and don't make adequate plans for repayment. They have a huge amount of protection under the Act so we can't keep holding their hands like little children. That's patronising.
Mungle mob investements are better
Sig
You can't regulate aganist stupidity. The subprime crisis on the buy side affected mainly hedge funds i.e. high networth individuals and MBA trained asset managers so this type of financial cretinism isn't limited to any social group. The only way you can really have an effect is to impose jail time intead of financial penalities for negligent misstatement nand trading while insovlent. That should sort them out.
So, what is it like digging ditches for minimum wage then?
It goes against the grain to back up our current government but here goes...
Bomber's assertion that "the Government couldn’t do anything" about loan sharking is untrue. See story for actions being taken right now as opposed to being considered for some time in the future, perhaps.
It would also be interesting to hear what Bomber reckons they should have done. Does he disagree that interest rate caps are a bad idea?
It would also be nice if Bomber had the courage of his convictions when attempting to shoehorn this story into his stunted black / white world view. This "unkind person" stuff is a real copout. Either you believe it or you don't write it.
JP.
And what about the people who have come from the lower socio economic 'class' and have worked their arses off to make a bit of headway, invested their money ... and lost it.
Not everyone with money is born that way Bomber, some people actually get ahead by their own hard work, determination, budgeting and saving. Again, it's lumping everyone into the same category eh?
No, I am not referring to myself.
NS
As someone whose parents came from that background; working class who made a bit of cash through decades of hardwork, his attitudes make me laugh. He and his ilk have no real idea of what makes the tick. They're no interested in protesting about Iraq or Maori rights like the chardonney socialists of Thordon and rent-a-crowd activists in Grey Lynn of which he is representative. All they are interested in creating a better life for their children.
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