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| Thread ID: 112295 | 2010-08-31 05:26:00 | South Canterbury Finance | ruup (1827) | PC World Chat |
| Post ID | Timestamp | Content | User | ||
| 1133361 | 2010-08-31 09:00:00 | They should be like Dubai and introduce criminal convictions and barricade peopel leaving the country. Well if I lose my money else I am not covered, cannot see why the finc industry is exempt to an extent, well it was for the bad times in the past which is supposed to expire in October to be renewed. I wish they cancel the thing. Tough bikkies - that's life. Such is if a person gets injured, dies, business goes sour. I don't care if they are father christmas. People want performance and want a transparent system and people should know if they know jack off maybe they should not put their money there. So what do we get for a father christmas? Even if it wasn't for the scheme everyday citizen to help them out even if they have made mistakes and continue to make more mistakes even if that is genuine good effort. |
Nomad (952) | ||
| 1133362 | 2010-08-31 09:56:00 | Campbell Live suggested that the existence of the Govt. guarantee may have actually encouraged SCF to take greater risks. | martynz (5445) | ||
| 1133363 | 2010-08-31 19:58:00 | **** happens. | prefect (6291) | ||
| 1133364 | 2010-08-31 20:04:00 | Its not going to be 1.6b, thats the mainstream media sensationalising. Really? |
pctek (84) | ||
| 1133365 | 2010-08-31 21:39:00 | Well if I lose my money else I am not covered, cannot see why the finc industry is exempt to an extent, well it was for the bad times in the past which is supposed to expire in October to be renewed. I wish they cancel the thing...The guarantee is there in order to ensure liquidity in the financial system, so that businesses can obtain credit. If the guarantee wasn't in place, nobody would invest in finance companies, banks etc. No investment means no capital available for lending. Here's why the guarantee is needed: No liquidity in the financial system means no credit for businesses who need it to undertake large or long-term projects. No credit means businesses will not undertake projects larger than what they have enough existing capital to cover, and will not take on projects with a long payback time. No large or long-term projects means a massive reduction in available jobs, and many businesses will go bankrupt. Huge reduction in job availability and many businesses going bankrupt means wide-scale unemployment. Wide-scale unemployment means massive tax hikes to pay for all the unemployed people. Wide-scale unemployment, many bankrupt businesses, and no credit means NZ will be unable to compete in a global economy, particularly when all the competitors *do* have access to credit. Unable to compete in the global economy means no net income for NZ. No net income means foreign debt spirals out of control, the government can no longer afford to pay for basic services, and NZ effectively becomes a third-world country.All that is why the guarantee is a necessity, particularly as every other country of significance in this area has a similar guarantee scheme in place. Just because you have no direct involvement with a company such as South Canterbury Finance doesn't mean that its future has no impact on you. While the guarantee money is being used to cover SCF's debts, the actual purpose of that money is to ensure the survival and proper functioning of the wider national economy. |
Erayd (23) | ||
| 1133366 | 2010-08-31 21:46:00 | The guarantee is there in order to ensure liquidity in the financial system, so that businesses can obtain credit. If the guarantee wasn't in place, nobody would invest in finance companies, banks etc. No investment means no capital available for lending. Here's why the guarantee is needed: No liquidity in the financial system means no credit for businesses who need it to undertake large or long-term projects. No credit means businesses will not undertake projects larger than what they have enough existing capital to cover, and will not take on projects with a long payback time. No large or long-term projects means a massive reduction in available jobs, and many businesses will go bankrupt. Huge reduction in job availability and many businesses going bankrupt means wide-scale unemployment. Wide-scale unemployment means massive tax hikes to pay for all the unemployed people. Wide-scale unemployment, many bankrupt businesses, and no credit means NZ will be unable to compete in a global economy, particularly when all the competitors *do* have access to credit. Unable to compete in the global economy means no net income for NZ. No net income means foreign debt spirals out of control, the government can no longer afford to pay for basic services, and NZ effectively becomes a third-world country.All that is why the guarantee is a necessity, particularly as every other country of significance in this area has a similar guarantee scheme in place. Just because you have no direct involvement with a company such as South Canterbury Finance doesn't mean that its future has no impact on you. While the guarantee money is being used to cover SCF's debts, the actual purpose of that money is to ensure the survival and proper functioning of the wider national economy. I still wish they cancel the thing. It's life. If they wanna improve they can do it from another way like improving the financial system. Personally I put my money into low interest low risk while my bank has this thing. I wish my own bank can do without this thing. If I lose my money, that's my problem. I take the responsibility. |
Nomad (952) | ||
| 1133367 | 2010-08-31 22:05:00 | It's life.That's true - and it would be nice to see those responsible sort it out themselves - but the sad fact of the matter is that they can't, and leaving them to stew would do far more harm to our economy. If they wanna improve they can do it from another way like improving the financial system.Nice words, but no real substance. If you'd like to see an alternative method of safeguarding our economy, what do you propose? 'Improving the financial system' sounds good, but means nothing. Personally I put my money into low interest low risk while my bank has this thing. I wish my own bank can do without this thing. If I lose my money, that's my problem. I take the responsibility.And that's good - clearly you're an ethical person who believes in individual responsibility. Sadly, the national and global economies involve more than just your own finances. |
Erayd (23) | ||
| 1133368 | 2010-08-31 22:37:00 | They should be the same as Hanover and others... If it was the past, there would be no gaurantee. People lived with it in the past too. There are far less ideal countries elsewhere. |
Nomad (952) | ||
| 1133369 | 2010-08-31 23:04:00 | The Government of the day has, in the past, bailed out the Bank of NZ and also Air New Zealand. I don't think that finished up costing the taxpayers much in the long run though and both Companies are still alive today. On the other hand the SFC has been downgraded in credit ratings twice in the last couple of years by Standard and Poors so you can't tell me people did not see this coming. |
Snorkbox (15764) | ||
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