Peter Paul and Mary, their politics were crap, their music great even if it took a toke or two.

Back in the eighties, the last ones, Liz’s not Vicky’s, after Roger Douglas sorted out the by then outdated financial thinking embraced by Rob Muldoon, the economy freed from the suppressions of his notions of a controlled economy, that ended up a big government belief that built Glenbrook Steel, Marsden Point Refinery, Urea plant in Taranaki, and The Clyde Dam on the Upper Clutha that all followed the now ending Manapouri Powered Tiwai Point Aluminium Smelter. Think Big was replaced by a much truer Think Smarter where to all intents and purposes small government in commerce and business left things to “The Market”.

Just as Churchill suggested Democracy was not perfect, House of Commons November 1947: “Many forms of Government have been tried in this world of sin and woe. No one pretends that Democracy is perfect or all wise. Indeed it has been said that Democracy is the worst form of Government except for all those other forms that have been tried from time to time”. The market is in the very same genre, not perfect but better than others tried from time to time. Politicians are very poorly equipped to manipulate the wealth created by mans endeavour for two simple reasons, getting elected and getting elected again. Until Rona turned up in the last months of 2019 the US economy was booming and delivering much of what Trump promised in his vanquishing of Hillary. There is still much to admire as the WuFlu takes its toll mainly in overcrowded slums of Democrat controlled cities, the Stock Market where punters using their own money gamble on what is coming down the track. The three main indicators from ‘Wall Street’ are at record levels but those who have watched for a while it will not go for ever.

Last night on NZ State TV there was an item that triggered my base instincts where an excited young woman was extolling her latest social drama. A group have regular morning coffee with the obligatory Muffins and dabble in the share Market. Muffins being prescient, back in the eighties while Douglas was locked in a philosophical debate with rank and file Labour in Lange’s Cabinet, the NZ share market was heading for the stratosphere, what could go wrong? Well Black Tuesday came along, that’s what. An aside, why are they called black days when the predominating colour around finance turns a very red red and equity gets stained when blank colourless replaces the temporary Red in the chrysalis that leaves Black just as for the caterpillar, history. Thousands wiped out and all the little investor morning coffee groups go belly up.

In my then, little rustic settlement of those heady days a small brokerage house had assisted those with a few bob sitting relatively idle to make modest investments. After Tuesday the 20th October 1987 when the smoke cleared and the avalanches of money suddenly thawed then evaporated, Bill’s little brokerage had gone spectacularly Broke. I have always regarded the share market as a place to put money one can afford to lose and is not needed in the short term , as in an inevitable forced sale situation Sod will be right there when the shares are to be converted into means of exchange and loss results. Of course the main bit of the essential is never “Borrow” to fund shares as that is why shares are offered in the beginning, to raise money that has a lot less imposed cost than a bank loan.

If those bright young ladies are using their little share market entertainment for fun and never will have a sudden need for the cash, being able to leave it in “The Market”, enjoy the ride but if what happened in little groups across NZ nearly 33 years ago and prudent rules on wide exposure and a bunch of solid boring investments are mixed with the speculative and sold as having “Potential”, are not followed, there is excitement aplenty with a prospect of a magnificent loss.

“Where have all the Flowers gone”?