The decision by the Government, backed by National, to guarantee bank deposits is sensible in the current climate, and really just brings us into the international mainstream.
It will also cover finance companies, but not the ones that have already collapsed:
It applies to finance companies that take deposits but is not retrospective, so it will be of no comfort to the thousands of investors who have lost money in collapses.
There is a valid argument that a government guarantee encourages more risky behaviour, but I think there has been so much of that behaviour regardless, that is less of an issue.
Helen Clark said a mini-Budget would be produced in December if Labour won the November 8 election.
Amazing – the biggest secret agenda of them all. We will announce our response to the financial crisis – after the election!
It is easy to conclude tax cuts will be cancelled (they will call it a delay) at a minimum.