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| Thread ID: 93990 | 2008-10-09 09:22:00 | hypocrits & thieves | mark c (247) | PC World Chat |
| Post ID | Timestamp | Content | User | ||
| 711056 | 2008-10-09 23:45:00 | IMO, its the bloody finance houses lending money to beneficaries that cant repay, default, go bankrupt, finance house goes down the pan, investors panic and withdraw all at once bringing the FH down, jo public ignoramus then thinks the banks will crumble too and so on... After a yr, the bankruptee's get to start again!! |
SolMiester (139) | ||
| 711057 | 2008-10-10 00:50:00 | IMO, its the bloody finance houses lending money to beneficaries that cant repay, default, go bankrupt, finance house goes down the pan, Beneficiaries, or a select group of property development failures building holes in the ground at places like Queenstown? |
PaulD (232) | ||
| 711058 | 2008-10-10 00:57:00 | For those interested in a bit of background to all this, here's a link to an interview with George Soros. www.nybooks.com |
mark c (247) | ||
| 711059 | 2008-10-10 02:16:00 | Beneficiaries, or a select group of property development failures building holes in the ground at places like Queenstown? My wife is a budget advisor, you wouldnt believe some of the loans finance companies hand out. At least with a property company, there is a chance there will be some assets at the end of the day. Some of these beneficiaries can hardly look after themselves let alone any substantial asset ie: cars..etc |
SolMiester (139) | ||
| 711060 | 2008-10-10 03:06:00 | At least with a property company, there is a chance there will be some assets at the end of the day. Five Mile Holdings in Queenstown owes $80M. Most of that was probably spent shifting dirt around and will never be seen again. |
PaulD (232) | ||
| 711061 | 2008-10-10 04:29:00 | Five Mile Holdings in Queenstown owes $80M. Most of that was probably spent shifting dirt around and will never be seen again. I would have thought most of it would have gone in advertising and sales commissions paid for pre-selling dreams! These bankers, money lenders and investment "managers" are probably the same bunch of pricks that broke a lot of people back in '87. Ken |
kenj (9738) | ||
| 711062 | 2008-10-10 05:39:00 | Well lets see if I have a company and I run it into the ground because of bad calls/ projects and I have to evict half a dozen tenants so I can sell the rental properties to pay my debts will any one step in and help me out? I don't think so. I was a builder and I agree that the building companies AND the architects did screw up badly on the leaky homes and yes they should have been made to pay to put them right. You would weep if you saw some of the things we were asked to do by developers/ architects. | gary67 (56) | ||
| 711063 | 2008-10-10 06:37:00 | I think it comes back to that old expression "If you owe the bank a hundred thousand you've got a problem, if you owe the bank a hundred million the bank's got a problem." They are simply too big to not bail out. And I found out the answer to my original question. Lowering interest rates is a way of stimulating the economy, simple as that, like reducing petrol tax or GST. Encourages growth. But it won't work. Any means to restore normality will simply make the problem start all over again. |
mark c (247) | ||
| 711064 | 2008-10-10 08:58:00 | Ah but it has worked - it was called The New Deal and was driven by Franklin Delano Roosevelt en.wikipedia.org This is Keynesian economics. Governments spend money to create work, infrastructure and economic activity. That stimulation kick-starts a depressed moribund economy which eventually gets rolling again and in time repays the Government with extra taxes and economic expansion. The American freeway system is a direct result of the New Deal. It employed hundreds of thousands of people and created markets for goods right across the USA because you could ship produce from New England to California in 3-4 days. Does no-one remember the Great Depression? I grew up with the fear of it in my parents eyes. No fun at all and the NZ government did not stimulate the economy. |
Winston001 (3612) | ||
| 711065 | 2008-10-10 09:12:00 | Governments around the world are talking about backing up the worlds banks with umpteen trillions of dollars, but where is this money? Will Reserve Banks around the world start running the printing presses flat out? Will world inflation follow Zimbabwe? Will the money be borrowed from China? Keynesian stimulation of the economy is a leftish/liberal concept and frowned upon by the Chicago School (so I believe). I'd have thought most people would be in favour of it rather than everyone taking their medicine. Where does the money come from? Well, as Mr Mugabe and the Weimar Republic proved, printing it isn't the answer. I imagine there will be some pumped out but not trillions. The money is borrowed by governments from those who have money to lend. Contrary to popular perception, there is still plenty of wealth in the world - Middle East, China, Japan, Russia, USA, Europe. What is different however is the risk/return ratio. Those lenders want gold-plated security plus a reasonable rate of interest. Previously they got sucked into the CODs which were AAA rated but proved to be junk bonds. Now its government securities but at higher rates, which also pushes up the rates for mortgages, business loans etc. That is why central banks are trying to drive down base interest rates. |
Winston001 (3612) | ||
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