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| Thread ID: 71376 | 2006-08-03 22:16:00 | Western Bay Finace - collapse predictable? | Strommer (42) | PC World Chat |
| Post ID | Timestamp | Content | User | ||
| 475914 | 2006-08-03 22:16:00 | This is not the first NZ finance company to collapse in recent times. Many people will 'lose their shirts'. Could it have been predicted? What government regulations protect investors? Read the story here. (www.stuff.co.nz) |
Strommer (42) | ||
| 475915 | 2006-08-04 21:16:00 | bump What? No financial experts here on PF1?? |
Strommer (42) | ||
| 475916 | 2006-08-04 21:41:00 | I would have thought it was predictable if they were giving out loans for cars willy nilly to low income earners who couldn't get finance elsewhere. Don't forget that cars depreciate fairly quickly (unlike property so far), so they are lending on something where it is unlikely they could recover their costs by selling the car if the loan defaulted. Based on the amount of money said to be out on loan and the number of clients this would mean that the average car loan on their books was for $5,300... so that's really going for the low end of the market. My guess is you'll see more of this sort of thing as the economy tightens and people would rather pay their increasing power/water/petrol bills first than a loan. |
Shortcircuit (1666) | ||
| 475917 | 2006-08-04 21:58:00 | This is not the first NZ finance company to collapse in recent times. Many people will 'lose their shirts'. Could it have been predicted? What government regulations protect investors? Why does the government have to be involved? If you want to invest in things like this its your decision. |
pctek (84) | ||
| 475918 | 2006-08-04 23:33:00 | Please keep the pollies out. If people are attracted by high interest rates and don't know there is a corresponding risk more fool them, especially when the company invested in has a policy of lending on used cars. Funny how the 3 last finance companies to collapse were chasing the high return but high risk used car finance. Investors should do their homework before investing not after. | dvm (6543) | ||
| 475919 | 2006-08-04 23:47:00 | When you take into account rapidly rising petrol prices it's no surprise the value of 2nd hand cars has fallen and whoops, there goes the loan security!! Unfortunately for the unwary (or uninformed) risk taking investors it won't be the last finance company to go belly up..... | andrew93 (249) | ||
| 475920 | 2006-08-05 02:04:00 | But we are told that we are bad savers, and instead of buying houses we should put our spare money in the "productive" sectors. What could be more "productive" (of bull and self-promotion) than the finance one? The sharemarket is infested with sharks and thieves, run for their personal benefit. Banks are ... So if people see the lovely advertisements from locally owned finance companies, promising good returns, they might just believe them. :( |
Graham L (2) | ||
| 475921 | 2006-08-05 02:17:00 | It's a classic case of not putting all of ones eggs into one basket. After the 1987 crash, there were pensioners moaning they had lost all their savings, this was because they had been lured by the promise of high returns. The result of being too greedy. It was a pain in the neck before the crash listening to all the endless share and financial chit-chat on and on in the DSIR canteen every day, and how much joe blogg's shares were now worth. It went strangely quiet afterwards. |
Terry Porritt (14) | ||
| 475922 | 2006-08-05 02:20:00 | It went strangely quiet afterwards. I'm guessing it will again as well in the not too distant future :( |
Shortcircuit (1666) | ||
| 475923 | 2006-08-05 02:45:00 | I'm guessing it will again as well in the not too distant future :( Wait until all and sundry are talking about shares, you suddenly see overnight experts, and the media aren't old enough to remember - then your prediction will come true! |
andrew93 (249) | ||
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