King Canute tries to hold back the tide

Cullen says NZ banking is sound – Stuff.co.nz

Michael Cullen has become the King Canute of NZ Finance trying to hold back the tide of finance company collapses.

Industry sources plus serious monied investors that I have spoken to today all say, this is but the start. They predict that there will be even more go to the wall and tears will be flowing except from them who are all cashed up and poised to make a killing.

Cullen is simply foolish to make statements such as this;
[quote]”Back in New Zealand, we don’t have the same sub-prime mortgage problems – our banking system is sound, The riskier end of our financial sector is finance companies, where we have seen some troubles in the past year.”[/quote]
that is just dumb, even supposed blue chip companies can go to the wall when the cashflow ceases and that is what will happen very, very quickly when all the oldies that have trotted up and down the main street seeking an extra quarter of a percent interest decide the mattress is safer. Once the short term money trail dries up down comes the house of cards that credit built.
Denying that we have a problem because we supposedly son’t have a “sub-prime” mortgage market is proving what every savvy investor and financier in new Zealand has known all along, that Cullen is nothing but a jumped up History Lecturer well past keeping his tenure.

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