There is a saying “Too big to Fail” and the supporters of Alan Hubbard and South Canterbury Finance are campaigning along those lines, but here’s a thought, why not let it fail?
There should be no such thing as too big to fail. Stupid, lazy and idiot business owners, lenders and creditors should be cleaned out.
Have another thought too, into whose pockets does the bail out go, and has this situation been engineered by at risk lenders who knew it would fail but lent more money to SCF and associates anyway knowing that they had a government guarantee with which to fall back on.
As is always with these situations, follow the money. Follow the money and let it fail.
As for the drop-kick borrowers with second and third mortgages to SCF, they deserve the hiding they should get by leveraging themselves so highly in the first place. SCF and Associates companies will have pouring literally hundreds of millions into dairy conversions that should never have been financed in the first place.
In a true free market SCF and its associated companies would be let fail. My pick is, is that Bill English and his other pinko mates in cabinet like Pedobear Power will want to chuck taxpayers cash at this, I say they shouldn’t.
Let it fail and then see what happens. The clean out would be good for the economy in the long run.
Of course we could always sell the lot to the Chinese, better they take the risk than the NZ taxpayer.
