The left’s banking inquiry

July 22nd, 2009 at 11:00 am by David Farrar

Labour and the Greens have set up their own inquisition inquiry into . The Herald reports:

An expert in banking has rubbished a planned inquiry and says banks are being treated as scapegoats.

Massey University Centre for Banking Studies director David Tripe said the inquiry should not be taken seriously.

Little danger of that.

What I find amusing is the opening statement on the inquiry site:

Many New Zealanders are concerned about the high level of

The floating mortgage rate averaged 6.44% in June 2009. In June 2008 when were in office it was 10.9%. So they were not concerned about 10.9% but are concerned about 6.4%?

That reduction means a $250,000 mortgage homeowner is paying $11,250 a year less interest or has an extra $215 a week in the hand.

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17 Responses to “The left’s banking inquiry”

  1. Bok (740 comments) says:

    This is so funny that I nearly dropped my hot coffee all over myself.

    So the greens who want the world to wipe out food stuffs so it can produce bio fuel, there by pushing up the cost of food and of bio fuel
    and Labour who paid a billion dollars for a train set that costs a tenth of that but double more to get to work…
    Is going to sit in judgment over finances…. mmmmmmm

    And in the opening statement they cannot see the absolute numbnuttedness of their mathematical skills?

    How very strange and unusual.

    Next you will have Phil Goff come out and suggest that we put workers on the benefit and fund it with…?? Pixies making money at the bottom of the garden.

    The one plus out of this crap is that we might save on health bills, I mean, christ it is so bizarre, that it is like being stoned and drunk watching a Monty Python movie. Except you dont need the drugs. Wow.

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  2. Richard Hurst (855 comments) says:

    Will they be holding the inquiry in Phil Goff’s lounge? Or his outdoor patio with barbeque to follow?
    Bring a salad and your own drink? ;)

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  3. Glutaemus Maximus (2,207 comments) says:

    Just not good enough!

    It was much better under Labour’s Jackboot.

    It just shows how pissed off Labour/Water Melons , and all round Communists are at losing control.

    Hell, Mallard will be working himself into a Lather.

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  4. Glutaemus Maximus (2,207 comments) says:

    Keep going Phil, the Office for Leader of the Opposition has such a lovely ring to it.

    Remember NZ, doesn’t need you. At all.

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  5. Repton (769 comments) says:

    I’m concerned about the low interest rates!

    I’ve got no sympathy for people who bought houses they couldn’t afford, but my term deposits are suffering badly..

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  6. Grizz (244 comments) says:

    The concern is that the prime lending rate is 3 to 4 percent above the OCR. When interest rates were high, the spread was much lower than this. However, if you read Bernard Hickey’s blogs, there is a good explanation why interest rates seem to be so high.

    In short, Banks have to borrow more money offshore which increases their costs. Why the have to Borrow more money offshore in part is due in part to overlending and existing bad loans. Overseas borrowing has increased costs largely due to the sick status of the global banking industry. However, there is also a component of the laissez-fare attitude towards government spending depleting the government books. For example, how much did the purchase of the Railways impact upon interest rates. This inquiry will only tell us what we already know, that we have to borrow and spend less. Avoid the stupidity of investing in residential property and have much less spending and borrowing at a Government level.

    Furthermore, I have also recently been educated that the OCR only reflects short term interest rates. Longer rates, like 2 or 3 year fixed mortgages are influenced by longer term government bonds. You will find that in New Zealand that these have been steadily rising as it becomes increasingly difficult to find investors to buy New Zealand currency.

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  7. bchapman (649 comments) says:

    Actually a really good argument against capital raisings to buy out public assets. If the money from local deposits is used for capital raisings to buy out Government enterprises, more money will need to be raised off shore. This increases the banks risks and reduces our credit ratings. The end result will be higher borrowing rates.

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  8. Pongo (372 comments) says:

    Some of us have savings but then again you dont really like people who arnt dependent on you Mr Goff. I want an enquiry into why I am only getting 3% on my savings under national, used to get 7% under labour. And where is greypower on this one.
    Dont know if anyone else saw Anderton in parliament yesterday, used up his months allocation of questions on this and got smacked two out of two. The guy should retire he is bewildered and dosent seem aware what millenium we are in.
    Hey DPF you need to put the video of Tony Ryall in question time yesterday, funniest thing I have seen in years, Robertson sets him up with a question and he annihalates Goff, supplementary from Robertson and “smackdown” again and again, just brilliant. You would have thought Robertson was a Nat feeding a patsy question.

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  9. Nigel (514 comments) says:

    Bernard Hickey is really good & Danica is no slug either if you want to know why the NZ currency is moving.

    I am in awe at the audacity of Labour/Greens on this one, they produced the economic environment where our public sector is overweight, requiring high taxes & an economy way to dependent on primary production & where the main primary producer was allowed to become a monopoly.

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  10. backster (2,171 comments) says:

    Rod ORAM Liabour’s financial spokesman on most of the broadcast media thinks it’s a great idea.

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  11. burt (8,269 comments) says:

    How typical of Labour….

    DPF

    You have done a few posts over the years on interest rate trends. Graphs showing how they went up up up under Labour since 1999 etc. In the comments section of those threads will be some very good lines to remind the completely myopic lefties that they didn’t care about high and increasing interest rates under Labour but think the sky is falling now National are in charge.

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  12. JC (955 comments) says:

    We are privately indebted to the tune of $170 billion. How many of these loans are shaky? 10%? Thats $17 billion in bad debts to the banking industry and a damn good reason to keep interest rates up.

    JC

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  13. peterwn (3,271 comments) says:

    Perhaps it is time we need a new bank. Are there say 1000 people who are prepared to chip in 100K each? If so we can get moving. Initially the bank is likely to pay a 5% before tax divvy at least until reputation and busoiness level enables overseas funds to be borrowed fairly cheaply, but it would be wistful thinking to borrow at the same rate of the big Aussie banks. h well, back to square 1.

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  14. Glutaemus Maximus (2,207 comments) says:

    We could get Cullen to run your idea of a new Bank? the Fiscal Fool has got lots of experience of doing super deals, and having to pay Aussies over the odds.

    He was so clever wasn’t he?

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  15. side show bob (3,660 comments) says:

    I’m surprised the left know what interest rates are. They have never worried about them before. Perhaps there is concern that the average struggling Kiwi may have a bit more wealth left over and they can’t get their thieving fingers on it.

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  16. Fairfacts Media (372 comments) says:

    As I said over at No Minister, Liarbour’s economic record gave New Zealand among the highest interest rates in the OECD.
    We need to remember this.

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  17. expat (4,050 comments) says:

    Labour continues its real time case study in how NOT to be a credible opposition.

    LMFAO!

    Labour ARE more irrelevant than the greens!

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