Blinking first
I heard Allan Hubbard's animated spokesman on RNZ yesterday talking of a media "character slaughter" (surely worse than the usual character assassination) and that all he needed to fix things up "is another $250 million". Yeah... and another $250m and another... If the only way to maintain solvency is several hundred million dollars of capital then Hubbard's profusion of companies and interconnected layers of related party transactions really does start to resemble a pyramid scheme.
The Finance Minister can bail out the greedy, gullible, wealthy Southern Tory white folk - and foreigners - because his Treasury officials rubber-stamped Mr fucking Magoo's pyramid scheme as eligible for the Crown's mega-generous, ultra-distortionary deposit guarantee. And he can pay out that $1.6 billion in cash by the close of business on the day that Mr Magoo's vehicle has finally finished its long plummet off the cliff. Just like that - in a matter of hours it's all tidied up - because: "Ensuring all depositors in South Canterbury Finance get their deposits back as quickly as possible will ensure a minimum of disruption to the economy.
Because it is vitally important that the wealthy Tory Southern white folk get all their money back - plus the ridiculous junk-bond yield interest - for the sake of the economy? Or for the sake of the personal fortunes of the wealthy Tory Southern white folk? If only every section of society was deemed worthy of such Crown largesse for their claims.
Maori claims for being ripped off and fucked over by the Crown for generations take decades to complete - not hours. And the amounts paid out under the Treaty Settlement process are not 100% of value plus interest they are never more than 2%. The total government payments for the Crown's own wrong-doing stand at less than $1 billion to date. But there's no racism in NZ, eh.
posted by Tim Selwyn @ 2:44 pm
6 comments
6 Comments:
Maori are a defeated people so to the victors the spoils...
Just be glad you were not wiped out.
For a starter the SCF debacle should not cost $1.7b after sale of assets has been realised.
Next, those Treaty settlements in 2010 dollar terms are what?
Next, New Zealanders are actually more riled about SCF than they were about Treaty settlements.
Next, check if Ngai Tahu has benefited from the SCF monies.
Oh and finally, how about leaky homes bailout? That will actually end up making these numbers look like chump change.
Cactus: Great post of yours on the whole mess BTW.
"For a starter the SCF debacle should not cost $1.7b after sale of assets has been realised."
—Well, who knows what the damage will be once everything is eventually sorted out and sold off? But Bill English said he paid $1.6b (plus a $175m loan) - those are the figures I'm using because we don't know, and he doesn't know, and probably Hubbard doesn't know either, how little they are really worth.
"Next, those Treaty settlements in 2010 dollar terms are what?"
—Inflation has been av. of about 2% over the period covered, so the $952m (half of which was after 2000) would not be that much more in 2010 terms. (But the ratchet clauses in the Ngai Tahu and Tainui deals will be triggered at $1b from what I understand and then it all gets very interesting)
"Next, New Zealanders are actually more riled about SCF than they were about Treaty settlements."
—It's more acute and immediate, yes - but the antipathy toward Treaty deals is far deeper.
"Next, check if Ngai Tahu has benefited from the SCF monies."
—Hey, I said "white" - not "Pakeha" ;)
"Oh and finally, how about leaky homes bailout? That will actually end up making these numbers look like chump change."
—You could be right, and the council rates are more vulnerable than central govt's ability to absorb the hit so it may be felt by more people; but also the other "commercial" Crown pay-outs in the Equiticorp/NZ Steel case ($268m in 1998) and Labour's attempted buy-off of the West Coasters to the tune of $120m in 2000 and Mickey Cullen's train set splurge (paid twice what it was worth) as a 2008 election stunt etc. are big ticket items that people don't seem to care about and have gone largely under the radar of the public's fiscal consciousness. But I don't think we'll be forgetting Mr Magoo anytime soon.
In reality the treaty settlements are just musket and blanket value.As for S.C.F. the people are going to take a loss for political appeasment of government supporters.
It will be sold not today not tomorrow but in 2 years time at the expense of the people.By that time, we will be to rapt up in the austier missery that the governments policies have inflicted on its people.
Just wanted to say how much your Mr. Magoo moniker has been cracking me up all week. It makes the rage over this whole clusterf*ck somewhat bearable. Love this blog.
Great article ! But we need to remember New Zealand leadership Maori and pakeha suck. Both sucking on the money while the ordinary folk pay the fucking bill. Waitangi settlements has made the lawyers super rich- do a story on that. But I see the point re 2 hrs vs 100 years of Waitangi complaints.
The other day I wrote-
The Prime Minister and the Minister of Finance forked out $1.6 billion under the Crown Retail Deposit Guarantee Scheme. Good move.
The NZ government are admitting liability and paying out depositors who trusted the government regulators to protect them. And rightly so. This mess was not the fault of investors. The government neglected its fiduciary duty but the public are paying for it.
Government must payout.
The government needs to payout all investors of these failed scams and regulate the watchmen better. New Zealanders need genuine accountability to escape the quicksand of unaccountable politicised crown leadership. The current reality leaves depositors investments being devoured by ravenous lawyers chasing pinstripe crooks defending themselves with stolen money. Just look at Matakana Island theft to see that!
Ticking time bombs.
Regulatory responsibility has been a series of ticking bombs from Lange to Key. The PM teams of those governments have lacked a duty of care with simple rules like loan -to-equity and securitization ratios. I have warned them relentlessly, banged on countless political doors but not one has opened, nobody wants to know.
And that is why we need the proper application of fiduciary law. This is society’s only way of keeping bankers, advisors, lawyers, politicians and judges honest to a jury. There are no other legal instruments available.
Failure of the Judiciary
If the courts and their Judges fail to apply fiduciary law (as I have seen them do on many occasions) the erosion of NZ’s economy and the financial futures of ordinary New Zealanders will continue to accelerate.
The proper application of fiduciary law by Judges will forestall the false economic highs caused by ponzi speculators playing with your money.
So why is not applied consistently and across the board? It’s a question of constitutional proportions which is probably why few want to ask it and even fewer want to answer.
In summary
The "Crown Ministers & Co Officials" have failed regulatory control needed to set the rules that would provide correct protection for depositors of money.
If I was banging on doors to lay blaim they would include-
Office of the Prime Minister, Minister of Justice, Ministry of Economic Development, Parliamentary Counsel Office, Minister of Commerce, Securities Commission, Reserve Bank, Law Commission.
These are the tax-paid work for you "Watchman" who have failed the mum and dad investors costing 180,000+ kiwi investors to lose $6.200,000,000+.
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