No Minister

A SOMEWHAT CURIOUS DECISION

The announcement by Finance Minister Robinson that the government is to legislate for a deposit guarantee scheme whereby individual deposits up to $100,000 in a range of financial entities including banks and finance companies will be indemnified against the institutions failure is an ‘interesting’ one indeed. It is proposed the scheme will be funded from a levy on deposits in much the same way as the EQC operates.

Begs the obvious question … why would anyone deposit money with a trading bank where today the best rate on offer is around 1% when they could just as easily put their money with a finance company at 3.5%. Seems to me the move will see depositors flock to the latter simply because the greater risk associated with finance companies has been edited out of the equation.

I mean … why wouldn’t you.

Socialising losses …. hmmmmmmm.

Written by The Veteran

April 23, 2021 at 11:39 am

8 Responses

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  1. Stupid policy. You get the extra interest from finance companies because they are more risky. This policy is dopey.

    Max Ritchie

    April 23, 2021 at 12:19 pm

  2. I assume that we will have to pay for the $100,000 insurance policy through Banks – there is no free lunch !
    Why the banks -well 20yers ago a major organisation still a leading (Aussie) Kiwisaver Manager lost us over a third of our not insubstantial pension savings.
    Had many friends who got burnt – one friend was with five finance houses and lost everything.
    Sadly we will stay at currently 1%

    Papa Mike

    April 23, 2021 at 2:19 pm

  3. Muldoon couldn’t have done it better. How long before they bring back SMPs and a floor price for wool?

    They could fix the housing crisis by paying ‘excess interest’ for first home buyers. No limit on the amount borrowed. The gummint will pay interest over 30% of your income.

    See? It’s easy if you only just try !

    adolffinkensen

    April 23, 2021 at 2:21 pm

  4. Yeah and MMP was designed to stop the Muppets getting hold of the levers of power, and implementing Social Credit fantasies, or ideas straight out of the Venezuela Ministry of Finance Handbook.

    MMP, another great theory from the pre-Woke left in the 1980’s that has worked a treat.

    Look at Education, centralized in Wellington, more civil servants in the Ministry than coal face workers, the coal face workers heavily unionized and have overseen our decline to 40th place in the world.

    Health will follow the same way, based on the same model. More civil servants in Wellington, the coal face workers, doctors and nurses heavily unionized (Just when I am going to need it in 25 years)

    Finance…. risk free deposits into third tier finance companies…wasnt that a 1990’s issue, now that solution, separating risk from decisions, thats going to work a treat.

    We just need the Maori Finance Authority now

    Shit you can buy good value property in France, do it up and live comfortably, plus they may get a right wing Govt that will take them out of the EU…paradise

    rossco01

    April 23, 2021 at 3:02 pm

    • Rossco, I very much doubt that French life would suit you. We work shorter hours for more pay, have socialised health care, and like way too much garlic.

      Sir Loin

      April 24, 2021 at 1:14 pm

  5. But Loin thats the point France has reached its apogee of Socialist nirvana and is about to return to normality, where as NZ is just springing off into uncharted territory on a ship called “The Damned”.

    One on its way to hell, the other about to return. I hope to jump mid journey.

    Besides the red wine makes up for a lot.

    You must know one of the old posters from here, lived in a French Village too, had a house in the UK purportedly, even one in Texus too, I think…..cant quite remember his moniker but he sort of disappeared up his socialist arsehole if I recall right.

    rossco

    April 24, 2021 at 1:47 pm

    • Village life is not for me. I like the countryside for a holiday, but I crave the arts, culture, dining, and haute couture of the cities. It is why I could never live in your little country, filled with Fred Daggs, Southern Men, and women who shave.

      Sir Loin

      April 24, 2021 at 9:04 pm

  6. We work…

    “We”?

    I’m glad that you’re now sticking with one pseudonym, email address and IP address, but remember how I said that you weren’t smart enough to pull off this endless, silly sock-puppet, trolling game?

    In this case you’ve forgotten that you had used a slight variation on your email address long ago, “Gustavo / Glamdring / etc, etc”.

    Tom Hunter

    April 24, 2021 at 1:57 pm


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