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Thursday, September 02, 2010

National bail out South Island Mr Magoo while bashing bennies

So Mr Magoo should never have been covered by this Government under the retail depositors' guarantee scheme in the first place!

The brilliant Fran O'Sullivan is all over this...

Alarm bells were deafening on SCF woes
Kiwi taxpayers should be asking why they have had to stump up a $1.77 billion cheque to "bail out" investors in collapsed South Canterbury Finance.

...shouldn't National have questioned what was going on? Fran thinks so...

Finance Minister Bill English owes taxpayers a clear explanation over why the new National Government did not insist Treasury undertake a deep due diligence on South Canterbury Finance before it was brought within the guarantee scheme. It was, after all, only a matter of months before the Government was making multi-million dollar provisions in its own accounts for finance company failures.

...Key goes from bailing South Canterbury's well-connected investors out and then in the same breath tells Teachers they are disconnected from the real world while promoting vodoo math from the Welfare Razor Gang that forces solo mothers, the mentally unwell, the sick and the crippled back to work in a 6.8% unemployment environment.

It's a feat of political posturing only allowed by a lap dog media that are supposed to be a watch dog media.

The good news however is that instead of knee capping the public service, we can borrow more...

NZ well-placed to handle economic shocks, says IMF
New Zealand is among only a handful of advanced economies where the government's budget is best placed to deal with "unexpected shocks", an International Monetary Fund (IMF) report says.

The National government has been criticised by the opposition for increasing debt to fund tax cuts during tough economic times.

But the IMF staff report released yesterday found New Zealand had the second smallest government debt out of the 23 advanced economies it analysed, suggesting the country's budget would be well-placed to deal with future shocks.

...we shouldn't be borrowing money to fund tax cuts, we should be borroiwng money to fund public services, and now with the IMF thumbs up, let's go get a new credit card and spend on the social infrastructure we will need to insulate our communities from the worst ravages of the coming depression.


At 2/9/10 5:39 pm, Anonymous Anonymous said...

"let's go get a new credit card and spend on the social infrastructure"

Sure Bomber, as long as you and your socialist mates pick up the tab but somehow I suspect this is something you'd never advocate.

At 2/9/10 5:44 pm, Anonymous aj said...

Thank you Michael Cullen

At 3/9/10 8:05 am, Anonymous Anonymous said...

How about a lefty tax - all Labour/Green voters are required to pay 15% more tax to fund the things they want.

At 3/9/10 2:51 pm, Anonymous Anonymous said...

Also imagine the outcry if a hypothetical Maori enterprise had been caught out the way Hubbard has been, using other peoples money to help fund other Maori. And the taxpayer had to bail them out to the tune of 1.8 billion, each man woman and child in NZ stumping up $400. The outcry and outrage would be absolutely deafening, there would be cries for blood, and race relations would be set back for decades.

But because it is the good solid white folk of South Canterbury benefitting from tax payer largesse, the reaction is somewhat muted and measured.

Just fucken bollocks.

At 3/9/10 4:46 pm, Blogger Eure said...

Firstly Cullen reluctantly adopted this after much grandstanding by Key/English leading up to 08 election. Cullen rightly pointed out that there was kiwibank which was the govt and most of the rest were Oz banks covered by the Oz bank guarantee. But the Nats cranked the sheeple into fear, so Cullen put up a bill which covered the major banks all nats voted for it & screeched "extend it". Once in power english/key did- it to cover finance companies which had a S&P AA rating or better. SCF slipt in under the wire, lo and behold weeks later S&P downgraded em. Funny eh!

There are 4 million taxpayers in NZ payin gst to pay this. Since you can only eat 3 squares/day drive 1 car, the cost will fall disproportionally on unrich citizens.

Most investment dosh was profit of asset appreciation and shouldn't have been bailed out.
Every investor was a money lender.
Usury is a scummy past-time that shouldn't be supported.

At 4/9/10 4:05 pm, Anonymous Anonymous said...

Cullen was the master of his own destiny, if Cullen was half as smart as he likes to think he wouldn't have covered al the major banks - or bought the trainset - but he was just a grandstanding little tosser, way over his head and fucked up big time.

Constantly blaming National for Labour's mistakes is pathetic - like those who blame Labour's fore shoreand sea bed bullshit on National. Labour are big boys and girls - they made their own decisions and did what they thought would serve them best - at the expense of everyone else, and we'll all be paying for it for a long time yet.


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