There is some interesting video being shot currently by amateur political pundits.
Watch the man in red in the background of this latest video.
c Political Animal 2008
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Sunday, September 28, 2008
Labour losing the race
"The time is right for a change".
You can hear it when you speak to friends, work colleagues and in social situations.
In recent times ,the moral outrage at the present state of our representation in the beehive follows the Labour Government and its supporters in Parliament imploding, more recently over donations to Labour's support party Winston Peter's NZ First and his pathetic slap on the hand by his political mates for his corrupt pratices.
Labour's high handed attitude to Winston Peter's lies and a cover up by Helen Clark over what she knew about the Owen Glenn donations is compounded by interference, criticism and bullying by her ministers over the Privileges Committee process.
The latest scandal comes on top of 9 long years of economic mis-management by Michael Cullen, a long list of political crimes foisted on New Zealanders to stifle free speech, an even longer list of social interference in our everyday lives, crumbling government "services", out of control crime,record welfare stats and an attitude from Helen Clark and her political allies that nothing is wrong, they are born to rule and it seems they will do anything to retain the reigns of power.
An underlying support and need from the New Zealand community for commonsense, humility, integrity, a hopeful vision for the future and above all honesty from our politicians is very clear and Kiwis know after 9 years of Labour they are not getting that.
Even die hard Labour voters are turning their backs on Helen Clark and her politics of envy.
It is difficult most of the time to get that from politicians from any political colour but the overwhelming feeling from the community is that New Zealanders want a change.
c Political Animal 2008
Paul Newman's death the end of an era
The death of Paul Newman today at the age of 83 brings back memories for me of a more innocent, uncomplicated and PC free world.
I remember seeing Butch Cassidy and the Sundance Kid on the TV as a young boy and thinking at the time, why couldn't my Dad be more like him?
Onscreen Paul Newman often played the hero or gruff outsider. The irascible chief in Towering Inferno, the irrepressible conman in The Sting, or the reprise of his role as "Fast Eddie" Felson in The Hustler in 1961 and all those years latter in the 1986 film The Color of Money.
I grew up watching all Newman's movies and tried not to miss anything he was in.
To me his on screen persona was the epitome of cool wrapped in an American flag.
I most identified with the independent, "outsider" characters that he often played.
As a watcher of his movies I also knew little of his personal life, his star seemed to shine from the screen through his performances and talent rather than what foibles he might have had in is private one.
Only when I got older did one hear snippets of what he achieved behind the cameras and in one of his last interviews on the David Letterman Show the twinkle in his eyes was still apparent.
Paul Newman was a devoted husband to Joanne Woodward and his children for 50 years, not only long in Hollywood but long for any marriage and a selfless charitable individual who raised millions through his Newman's Own brand of salad dressing and oils.
He did this all under the radar, with humility, care, kindness and an obvious love for his profession and those close to him.
An answer to the question of why wasn't he attracted to the beautiful woman he often starred alongside really sums Paul Newman up for me:
"Why go out for a hamburger when you can have steak at home".
His old fashioned sensibility, manners, talent and sense of loyalty are sadly lacking, in Hollywood especially, but also in the wider community(some of our politicians in New Zealand could learn a thing or two from him, especially about honesty) and his passing, sadly seems to leave alot of those positive characteristics dead with him with some notable Hollywood exceptions.
He was above all a gentleman.
He will be sadly missed by millions and one big fan of his down in New Zealand.
Related Link
VIDEO-Coolhand Luke Famous egg eating scene
c Political Animal 2008
Saturday, September 27, 2008
FULL VIDEO: Presidential Debate - John McCain and Barack Obama, September 26, 2008
The much anticipated Presidential Debate between John McCain and Barack Obama was really a case of two different political ideologies colliding.
Even though McCain is often labeled a democratic wannabe(urrghh!!) he is still more on the side of freedom of speech, solid experience and a history of actual achievements made outside the academic world that Obama and the democrats occupy.
Where McCain is a practical man, Obama's thoughts and ideas come from the university text books that spout leftish ideologies and political correct mumbo jumbo and emotional platitudes.
That is evident in Obama's speech.
McCain was the clear winner in this first of 3 Presidential debates live in Mississippi on 26 September 2008.
Related Video
Affilated Links
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Shareinvestorforum.com - Discuss this topic further
Share Investor Blog - Stockmarket & Business commentary
Share Investor New Zealand Business News- Get more business news
Shareinvestorforum.com - Discuss this topic further
c Political Animal 2008
Dont quote me on that
"Tax cuts next week would help stimulate the economy"
-Michael Cullen Sept 26 2008
This wee sentence by the Deputy Dr will now be etched into history as a major turn around in fiscal and ideological thinking.
Consider these quotes:
“We just don't believe in tax cuts - it's against our fundamental philosophy - after all we are socialists and proud of it.”
-Micheal Cullen
"Tax cuts are a very sort of blunt weapon to redistribute income"
— Mike Williams, President of the Labour Party
"Tax cuts are a path to inequality. They are the promises of a vision-less and intellectually bankrupt people"
— Helen Clark, speech to 2000 labour Party Conference
I am confused, do tax cuts stimulate economies or are they only fit to do an unthinking Robin Hood trick with your money when there is a philosophical shift prior to a general election?
Friday, September 26, 2008
Hero
Most of the stuff written on this blog is negative crap, because it is about politicians.
I would like to write a positive memento about a Hero, Austin Bernard Hemmings, who was murdered yesterday while defending the safety of a woman that he didn't know because she needed his help.
It was a selfless act from a devoted family man who left for work on the Devonport ferry Thursday morning and never came home to his wife and three teenage children.
A tragedy for sure, for all those that knew and loved him but in his last act on this planet a positive reinforcement of how truly good most New Zealanders are.
His wife, children, family and friends will be missing this truly lovely man.
Lets hope his death is an impetus for positive change instead of more of the same.
c Political Animal 2008
NZ Herald Digipoll: 26 Sept 2008
In the latest NZ Herald Digipoll, it shows the trend of all polls taken for well over a year that National continues to lead with a comfortable margin over Labour.
The political divisions and allegiances triggered by the furore over secret donations to New Zealand First and leader Winston Peters have had little effect on party standings in the latest Herald-DigiPoll survey.
Support for National, which has said it would not work with New Zealand First after the election, has risen slightly, by 1.4 percentage points, to 51.4 per cent of decided voters.
This would give it 68 seats in Parliament - enough for it to govern without a coalition partner.
Labour, which aligned itself with Mr Peters, is down 0.6 points to 35.7 per cent.
New Zealand First is up by 0.7 but to only 2.8 per cent - not enough for it to stay in Parliament after the November 8 election without winning an electorate seat.
In political polls it is the trend that should be looked at to get a more accurate picture of the political landscape.
Herald Digipolls
c Political Animal 2008
VIDEO: FREAKY FRIDAY FUNNY-Super Nanny State
In the tradition of Monty Python, Dick Emery, Kenny Everett, Charlie Chaplin and possibly a drunk 3rd form audio video class comes this un-puritanical poke at the Pollies and poofters from the hairy arm pitted, sandal wearing, dolphin loving, cardie covered, freedom hating, loony left and the Labour Party.It isn't quite as funny as Winston Peters and his perplexing interviews but it might just make you titter until you wet yourself.You can thank me latter. Related Political Animal Video
The $700 Billion Question: How much will the taxpayer bailout affect my investments?
I have been busy consumed with dirty politics over the last few weeks and haven't been writing much on investing. I cant help myself, these are interesting times in which we live.
I, like many of us, have been nervous about global economic problems and what that might mean to my investments.
I have a share portfolio, a house, a business, money in the bank and other financial interests that are going to be deleteriously affected by the fallout from the Sub-Prime meltdown.
Whatever your politics or attitude to investing, the US$ 700 billion taxpayer bailout of the US banking system is a necessary evil-I happen to be vehemently opposed to this kind of corporate welfare, but that is another story-we will suffer more economically if nothing is done.
So lets get to the point of this little rant.
Assuming the bailout will go ahead in a reasonably swift fashion, and it is likely to happen, how much impact will there be on your assets?
To be sure there is no free lunch when this size bailout is made, someone has to pay, in this case the American taxpayer digs deep and pays directly and the rest of the world will get caught in the fallout in a more indirect way.
$700 billion of extra debt for the biggest economy in the world means higher interest rates, higher gas, food and living costs and much, much more for the rest of us. All this unproductive spending means higher inflation, a slow down in the US economy, and a cut back by corporations-even outside the crippled financial sector-which will clearly have an impact on employment.
A decent recession is something we will have to look forward to and this will impact on asset classes of all kinds. When $700 billion is removed from an economy like that, your house, shares and business are going to be worth less.
Even though I am a long-term investor in all the assets that I hold, it is still hard to take the day to day devaluing of those assets.
I wrote a piece the other day about what companies you might consider buying during an economic slump of this kind and came to the conclusion that buying stocks in companies that sell day to day commodities or things that people will still use during a recession is a relatively safe bet.
I called it "The Monopoly Board" approach to investing, buy the eclectic, water and airport company monopolies and you will soon see your wealth increase.
Clearly shares in companies that sell widgets that are not essential are going to struggle during the coming downturn and as a result they ain't going to be worth as much.
If the bailout works and it probably will in the medium term, we will still need to hunker down and live a bit more frugally than we have been over the last 15 years or so.
Global economic growth was astounding in those years, assets increased in value multiple times and you shouldn't be surprised if your current assets lose half of their value before things get better. Even with a decrease of that nature we will still all be better off than we were at the beginning of this century.
Oh well, at least I still have my health.
Buy Toughen Up: What I've Learned About Surviving Tough Times
Toughen Up - Fishpond.co.nz
c Share Investor 2008
Thursday, September 25, 2008
VIDEO: President Bush Addresses the Nation, Sept 24 2008
Something that goes beyond politics and of interest to everyone in New Zealand and around the world, President Bush addressed us all really about the dour state of America's economy.
His announcement explained the position of the economy and the impacts on it if the US$ 700 billion taxpayer funded bailout of dodgy mortgages fails to go through Congress.
It is vitally important for us all to back this bailout, regardless of your politics.
President Bush on Wednesday said, "Our economy is facing a moment of great challenge. But we've overcome tough challenges before -- and we will overcome this one. I know that Americans sometimes get discouraged by the tone in Washington, and the seemingly endless partisan struggles. Yet history has shown that in times of real trial, elected officials rise to the occasion. And together, we will show the world once again what kind of country America is -- a nation that tackles problems head on, where leaders come together to meet great tests, and where people of every background can work hard, develop their talents, and realize their dreams."
Related Links
Video (Windows)
Presidential Remarks
Audio
Full text of George W Bush addressing the nation on Sept 24 2008 Asian Markets mostly down Cincinnati reaction to Bush Address UK reaction Canadian reaction Australia
c Political Animal 2008
President Bush on Wednesday said, "Our economy is facing a moment of great challenge. But we've overcome tough challenges before -- and we will overcome this one. I know that Americans sometimes get discouraged by the tone in Washington, and the seemingly endless partisan struggles. Yet history has shown that in times of real trial, elected officials rise to the occasion. And together, we will show the world once again what kind of country America is -- a nation that tackles problems head on, where leaders come together to meet great tests, and where people of every background can work hard, develop their talents, and realize their dreams." Video (Windows) Presidential Remarks Audio Going weak at the knees
Incidentally, both networks were carrying live interviews at the same time, I know Peters can walk on water but even he cant be at two places at once-or can he? That would explain some of his conflicted behaviour. He actually has a doppelganger!
Anyway back to the interviews.
There was bluster, there was indignation, there were denials, there were lapses in memory, there were attacks on the interviewer and yes there were more lies.
For some reason Campbell's interview got Winston the most riled-to tell you the truth he riles me too, something about the ears-and Salisbury's was calm by comparison.
Skip to the end and wait for it...as if on cue there was that killer smile. On both interviews.
At that point 80 year old ladies all over New Zealand wet themselves with excitement.
Then I thought.
How awful, he just might do it again come Nov 8.
c Political Animal 2008
Conflicted Interests
Further to my piece about John Key's share disclosures this week and his former holdings in Tranzrail apparently making his position as an MP a conflict of interest, there comes info on a more pressing and real conflict of interest
Jeanette Fitzsimons and her conflicts over shareholdings in several companies associated with her Party the Greens and the Labour Party passing "green" based legislation.
1 Company directorships and controlling interests
Aeolian Property Company Limited – property management
Green Circle Farm Limited – farming
2 Interests (such as shares and bonds) in companies and business entities
Fletcher Building Limited – building materials and products
Cavalier Corporation Limited – wool scouring, carpets
Fisher & Paykel Appliances Holdings Limited – appliance manufacture
REGISTER OF PECUNIARY INTERESTS OF MEMBERS OF PARLIAMENT: SUMMARY OF ANNUAL RETURNS J. 7
23
Fisher & Paykel Healthcare Corporation Limited – healthcare equipment
Scott Technology Limited – technology
6 Real property
Family home (jointly owned), Kauaeranga Valley, Thames
One-fifth share in relative’s home near Kawhia
7 Superannuation schemes
Green Futures Superannuation Trust
MFL Property Fund
From The Hive comes this gem:
Remember the $1 billion in funding, in part to subsidise home insulation, negotiated by the Green Party as part of the agreement to vote for the ETS?
Guess who owns shares in the company that makes this product????
This really stinks. Of course it would be too much to hope for One News to pick this up.
Guess who owns shares in the company that makes this product????
This really stinks. Of course it would be too much to hope for One News to pick this up.
A comment on the Hive's post reveals the following:
Jeanette FITZSIMONS (Green, List)
1 Company directorships and controlling interests
Aeolian Property Company Limited – property management
Green Circle Farm Limited – farming
2 Interests (such as shares and bonds) in companies and business entities
Fletcher Building Limited – building materials and products
Cavalier Corporation Limited – wool scouring, carpets
Fisher & Paykel Appliances Holdings Limited – appliance manufacture
REGISTER OF PECUNIARY INTERESTS OF MEMBERS OF PARLIAMENT: SUMMARY OF ANNUAL RETURNS J. 7
23
Fisher & Paykel Healthcare Corporation Limited – healthcare equipment
Scott Technology Limited – technology
6 Real property
Family home (jointly owned), Kauaeranga Valley, Thames
One-fifth share in relative’s home near Kawhia
7 Superannuation schemes
Green Futures Superannuation Trust
MFL Property Fund
Nothing wrong with owning assets, but holding shares in Fletcher Building (DISCLOSURE: I OWN FBU shares!!) and advocating for the Emissions Trading Tax fraud law is a clear conflict of interest and as The Hive rightly states, mainstream media seem as blind as Stevie Wonder when it comes to its reportage, along the lines of the non event of John Key and his Tranzrail shares.
There is also confusion over whether she still owns Windflow Technology shares and conflicts about over holding shares in that company and Jeanette's pushing to advantage the wacky backy Windmill industry.
Go figure.
c Political Animal 2008
Wednesday, September 24, 2008
State controlled Internet?
I vaguely remember hearing about this a few years ago but it has reared its ugly head today.
The Labour Government says, "it is moving to plug loopholes which have opened up in media".
We have heard of Helen Clark's antipathy to the media in the past, when they dare to critique her, so I am more than a bit worried about Labour's motives:
But initial consultation has shown more support for having two "converged" regulators, one dealing with economic and access issues, and the other responsible for social/cultural issues such as content.
"Cultural and social issues such as content".
What the hell does that mean?
When you combine the above with this below things start getting a little scary:
Government decisions will also determine whether broadcasters who also put news and other content on the internet should have to meet the same broadcasting standards, and whether those should be extended to other content providers.
It is scary because when we look at how badly Labour has written legislation over the last 9 years we know that much of that legislation, like the Electoral Finance Act, you could drive several Mac semi trucks through the holes in them.
Meet the same broadcasting standards of content on the internet as in mainstream broadcasting?
That sounds like censorship to me and as a blogger that has me worried.
Labour have already clamped down on criticism of them during an election year with the Electoral Finance Act and that has already had deleterious effects on websites on the net and as the Electoral Commission has said "had a chilling effect on freedom of speech."
Labour don't like criticism, their official taxpayer funded Labour Party Blog, The Standard, shuts down dissenting debate at will and censors some contributors, and I fear that this proposed "plugging of loopholes" by passing legislation to regulate content on the net will have the same modus operandi as Labour's Blog.
It leaves me with a chill down the spine.
It isn't practically necessary, but it seems politically necessary to Labour because I fear, once again, that they want to shut down democratic debate.
c Political Animal 2008
Obstruction of Justice by Labour a desperate move by a dying Government
Lies, cover ups, censuring of witnesses in public and now obstruction of justice.
Is this happening in a criminal case in a kangaroo court in Zimbabwe?
Well, no, we all know it is the Labour Party's attitude and actions to a justice process, in what is the highest court in the land-a Privileges Committee hearing- that makes their support of Winston Peters a look like the corrupt circus that it clearly is.
How far will these group of people go to obstruct natural justice?
Today New Zealand finds out that Parekura "Ill eat anything if it was once alive" Horomia has threatened one member of the Committee, Pita Sharples, and urged him to vote in Peters favour:
Maori Party co-leader Pita Sharples today said a government minister, whom he would not name, rang him on Sunday and Monday to pressure the party to vote in support of Mr Peters.
Dr Sharples also said a NZ First staff member arranged a meeting with Maori MP Te Ururoa Flavell, who sits on the committee, to discuss the inquiry.
Of course most people know that tampering with the judicial process in this way is a highly serious matter and in a civil court a contempt of court charge can be laid against the offender.
As these are politicians of course there will be no consequences.
Of course this style of politics is well known to the Labour Party, it is practised when they get backed into a corner and desperate.
Many Government and quasi government officials have been bullied out of their positions when their outlook on their job starts to differ from the party line.
Trevor Mallard manhandled Owen Glenn away from Helen Clark earlier this year, so as not to embarrass her over donations made to the Labour Party.
Michael Cullen frequently gets nasty and vindictive because of John Key's success and he has tried to bully him at every opportunity.
This latest desperate attempt at obstructing justice is really a logical escalation of Labour's modus operandi.
As they get more desperate their political maneuvering gets dirtier. Unfortunately it looks like they are going to fight the election in this way instead of with policy and that is a damn shame.
This is from a party that introduced a no-bullying policy in State schools.
What criteria did Helen Clark say the Election was to be fought on?
That's right, it was "trust".
c Political Animal 2008
VIDEO: Michael Cullen on Socialism
A bizarre little video of Michael Cullen at a drunken Labour Party meeting in a pub somewhere.
Here he explains his reasons for being a socialist and his warped outlook on the world and how it should be.
It kind of explains his bitter stance towards successful people like John Key and his labeling of such people as "rich pricks", poking fun at them and deriding them for having a go, having aspiration and succeeding in life, instead of giving them well deserved due praise.
After having watched this I can see the reason why the working for families welfare package was rolled out-it is central, in a major way, to Labour's socialist ideals.
Of special interest is his stance on tax cuts and it flies in the face of the meagre cuts he has promised to buy votes in the 2008 election.
It is worth a look if you don't know much about this strange little man.
It should scare you.
c Political Animal 2008
Knuckle dragging native gets Zimbabwe justice
So poor Winnie is going to be "censured" by Parliament for taking $100,000 from Owen Glenn, not declaring it then lying about it to Parliament, the Privileges Committee and the New Zealand public?
Oh, and the poor boy has to make declarations of donations going back the last 3 years.
Big hairy motherfucking deal!
The banana has now been fully bent and as Peters and his mates quite rightly say, justice in New Zealand has gone the way of Mugabe's Zimbabwe:
Mr Jones and Mr Peters said the committee's actions reflected what happened in Zimbabwe.
The Zimbabwe reference in Winnie's case refers to the fact that there will be no consequences for his lying, thieving, cheating ways.
Dale Jones and Peters live in a wonderland world where puppy dogs tails are made of candied gold bullion and cracks in pavements are the portal to another world where black is white, up is down and lies are actually truth and fuck you if you don't live in our world-and never mind that we live in a democracy.
Michael Cullen, a man that doesn't need any hands to wank because he can do it just by talking, said in Parliament today that he couldn't agree with the majority decision in the Privileges Committee because:
"Owen Glenn was an unreliable witness"
Clearly he has ejaculate all over his face by saying that, we know who the unreliable witness is.
Peters has also continued his lies today by repeating his denials that he had done something wrong.
Welcome to the undemocratic republic of Zim Zealand.
Peters censured by Parliament -Video
c Political Animal 2008
Tuesday, September 23, 2008
JOHN KEY: Personal Statement on Tranzrail shares
Below is a statement from John Key about the FACTS relating to his past Tranzrail holdings.
There is no Labour spin and untruths about Key's share dealings as there was from Labour.
He has apologised, something Clark hasn't done for lying about her involvement in the Peters/Glenn donation scandal and that should be the end of it.
National Party Leader John Key today absolutely rejected assertions that he used his parliamentary position to gain any benefit from owning Tranzrail shares or intended to mislead anyone.
"The facts are:
- I never personally owned shares in Tranzrail. My family trust did, and initially purchased Tranzrail shares prior to me entering Parliament.
- My broker managed the details of the trust's portfolio, reporting to a solicitor acting as an independent trustee of the family trust, and was able to act without reference to me personally.
- In early June 2003 I saw that Tranzrail was going to be a political issue, and instructed that the shares be sold. The parcel as a whole was sold at a loss.
- My recollection is that I instructed the sale prior to the 11 June select committee meeting. Nevertheless, I now believe I should have instructed their sale earlier.
- I didn't intend to mislead in regards to the number of shares the family trust owned. The trust owned different parcels on different dates, and the focus had been on a 30,000 share parcel which was the subject of a Labour Party allegation.
- I didn't release details of those shareholdings at that time. In hindsight I should have, and I am doing so now.
"We all know why this issue is being raised today, because the Prime Minister has a number of issues she needs to answer, including Winston Peters and other important issues that the country is facing."
Click to download letter from UBS to John Key (PDF)
Click to download copies of share buy/sell contracts (PDF)
Related Political Animal reading
c Political Animal 2008
Mrs Muliaga to blame for her death
I didn't want to comment on the Muliaga Family and the tragic death of their mother Folole Muliaga until the coroners inquest had made a decision. It is a very sad case of neglect by Labour's welfare state and a consequent lack of personal skills and care by the Muliaga family and the deceased herself.
This says it all for me:
"The report said the way the power was disconnected was not a factor. The official cause of death was cardiac arrest caused by morbid obesity".
There was some comment about stress caused by the disconnection possibly being a factor but the woman was near death anyway according to healthcare workers at Middlemore Hospital.
There is blame laid on the power company Mercury Energy, the individual who cut the power off,and the Counties Manukau Health Board.
The central blame for their mothers death though lay in the Muliaga Family themselves, they failed to care for her adequately, neglected to pay power bills and failed to inform emergency services when the power was cut.
The main blame of course should be sheeted home to the individual who ended up dying. Mrs Muliaga basically ate herself to death and continued to ignore hospital advice to cut back her massive intake of calories.
Unfortunately this sort of lack of self responsibility is endemic in the part of South Auckland that the Muliaga family lives and it has been inbred for generations, by the welfare state, accelerated to the extreme over the last 9 years of a Labour Government.
If personal responsibility was a focus in this part of the country, instead of a dependence on the state and the taxpayer, people like Mrs Muliaga may well be still alive today.
Related Political Animal reading
c Political Animal 2008
Key VS Cullen
Who would you rather have looking after taxpayer money?
Lost $110,000 of his own money
when he had to sell his Transrail
shares because of a perceived
conflict of interest by the Labour
Party.
Lost $570 million when he spent more than $700
million taxpayer dollars buying back Tranzrail when
The good doctor strikes out again.
Related Political Animal reading
c Political Animal 2008
Free Market to Pollies: We dont want you!
The meltdown of world financial markets has been headlined in the news to the max over the last couple of weeks and the prequel to it has been simmering for more than a year.
Massive collapses of Sub Prime related lenders like Merrill Lynch, Lehman Brothers, Bear Sterns and a whole host of other major lenders have bitten the dust. Some have been "rescued" by the US Fed and some have simply died a natural death. They took the risk, so they should therefore die by their own sword.
Unfortunately these lenders are not being allowed to die a natural death. Uncle Sam is getting involved, in a big way, and that will be a big problem sometime in the future.
Much finger pointing from the left of the political sphere that the "failure of true capitalism" or "the free market" is the fault of the free marketeers and their greed and it just goes to show that capitalism doesn't work.
That is rubbish of course and nothing could be further from the truth.
Capitalism or the free market in its current form hasn't been allowed to be free from interference from Governments the world over, and as we scramble to yet another taxpayer bailout of private investors and publicly listed companies we see the same sort of interference that has brought the whole credit market down, begin all over again.
The facts are that bad lending was forced on lenders by Congress back in the 1980s:
Congress set up processes (Research the Community Redevelopment Act) whereby community activist groups and organizers could effectively stop a bank's efforts to grow if that bank didn't make loans to unqualified borrowers.
Real Clear Politics
This has led to the current and inevitable blow out that we are now experiencing.
Rather unsurprisingly two of the first lenders to go were the State backed Fannie and Freddie, now laughingly called Feddy because it is now fully State owned.
Ironically, Fannie Mae was set up in the 1930s as a State antidote to the crazy lending of the 1920s, the stockmarket crash in 1929 and the depression of the 1930s to lend money to the "secondary mortgage market" (sounds familiar doesn't it). Freddie Mac was set up by the Federal Government in the 1970s when Fannie was privatised but Fannie still had Federal input.
Even more bizarrely, New Zealand politicians from the left are contemplating setting up our own sub prime mess by allowing people who cant afford to borrow to buy houses the ability to borrow money with the help from the State.
Will we ever learn?
The free market must be left to function perfectly as it would if left alone. That is, those that take risks either benefit from those risks or lose their shirts, that is how a free market truly works.
Until politicians keep their sticky little interfering fingers out of that free market we will continue to experience economic meltdowns of the wonderful variety that we are currently grasping to fully understand.
I can hardly wait for the "carbon trading" collapse.
Related Share Investor Reading
Who is attacking your portfolio?
Global credit squeeze: There is no free lunch
Of tulip bulbs and tooth fairies
Current credit crunch a blessing is disguise
Leaders must come clean over losses to restore faith
Market Meltdown: I can smell the fear from here
Discuss this Topic @ Share Investor Forum
Buy Toughen Up: What I've Learned About Surviving Tough Times
Toughen Up - Fishpond.co.nz
c Share Investor 2008
A mass debate
There will be a debate in Parliament involving all political parties at 2.00pm this afternoon over the findings from the Privileges Committee over lies told by Winston Peters, His lawyer Brian Henry and Helen Clark over the Peters/Glenn donation scandal.
It will be interesting to see the logic given by Labour and its support parties to a, lying, cheating, underhanded mongrel the likes we have never seen(And that is just Helen Clark!) in the history of our Parliament.
Listen to the shenanigans and spin from Labour here at 2.00pm today
Listen to Parliament (only during sitting, Tues-Thurs, 2.00pm , NZ time)
Or watch in full untouched live Video here:
Watch Parliament
c Political Animal 2008
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