Quentin Todd
Since: Nov 2007
Posts: 68
Peter,
Hooray! someone actually wants a change to protect the little investors! It is a bizzare event these collapses, yet the signs of whatever the cause are there to work a new "regime change". Get more accounable practices etc.
One thing I am scratching my head over is: where did all the money go? Should Government intervene by pumping money back into the investment in question? I am thinking of the couple on TV recently from Hamilton who put a deposit of $200,000 down on an apartment in Auckland currently under construction and yet have lost that and their house in Hamilton.
Perhaps some enquiry into the causes would be a good start and I am sure you would want to call that
It is going to be a painful lesson for everyone.
terrylev
Since: Aug 2007
Posts: 9
Moderator
I thought you should have a read about Iceland's financial woes. They are clearly in a boat almost identical to ours.
Click on this link:http://www.newyorker.com/talk/financial/2008/04/21/080421ta_talk_surowiecki
Here is a clue though which should whet the appetite:
"What got Iceland in trouble was something more subtle: its banks got their money primarily from international investors, making the Icelandic miracle heavily dependent on foreign capital."
And as you read this consider the fact that for a while now some of the world's leading hi-tech brands have been working out of Iceland because they have done so much to encourage that sort of economy.
Seems to me like things could get a lot worse. That interest rates won't come down, and that tax relief won't be that easy to give. Not to mention the need to keep the NZ Dollar afloat as petrol prices escalate.
mcinnes
Since: Apr 2008
Posts: 53
I have great sympathy for those who have suffered as these companies collapse.
The day that those running such companies change from an attitude of what appears to be something like the following will be a great day. It seems finance company directors tend to think "well if you want to put your money with us we'll try & get you say another 1.5% or so more than your bank can get for you on fixed deposit. But hey, don't come crying to us if/when it all falls over. We pay ourselves very well. We do that because we believe we work very hard for you in quite demanding markets. If we don't get you a good return, in fact if we loose all your investments please remember it wasn't our fault because you could have left your money with your bank - could you not!"
Some changes need to come but until that underlying attitude is exposed to the general public cowboys will continue to ride rough shod over those who worked hard for their money, invested it in hope only to find those they trusted took care of themselves more than their investors.
