Larry lashes Little’s lurch left

Angry AndyLarry Williams lashes Little and Labour’s lurch left.

Labour took a jump further to the left with Andrew Little’s mindless threat of strong-arming and legislating the banks on interest rates.

The brain fades emanating from Little are relentless and are reflected in the polls. Labour is unelectable if they continue with the senselessness.

Labour seem intent to continue with their attack-style radical, irrational politics.

It’s a road they seem intent of going down, Labours keynote speaker at its conference next week is Robert Reich, one of America’s best-known economic commentators, who has endorsed socialist Bernie Sanders. You can see where Labour wants to go. It’s certainly not the mainstream.  

On the banks, it’s fashionable to demonise the banks and Little thinks he’s onto a winner, but his threat to “stiff arm” the banks and legislate if Labour gets into government is far left political thinking.

Yes, the banks margins have increased by four basis points – from 2.24 per cent to 2.8 per cent in 2015 but that number is negligible, it’s at the margins.

Banks have more risk and they have a Reserve Bank requirement to hold more capital. The uncertain global financial markets have pushed up wholesale funding costs which the banks rely on.

David Tripe, an associate professor at Massey University, said “the decision not to pass on the full cut was a reflection of the upward pressure banks were feeling in their funding costs.”

Without the cut, banks may have had to increase their rates, putting more pressure on borrowers. In other words, just because there is a cut to the OCR does not automatically reduce the banks’ cost of funds.

Little sees the banks as easy pickings but it’s yet more “on the hoof” policy that lacks substance.

What you are seeing is the result of improper polling that has come about because of Labour’s lack of funds.

They are running around chasing every passing bus thinking that if they can just catch one they’ll be in with a chance.

Watching parliament is hilarious at the moment. The Nats are just braying at the drop-kicks across the aisles. The despondence is written all over Labour members’ faces. Watch Chris Hipkins just slink down behind Andrew Little, cringing at his performances.

Any day soon Robbo is going to turn up with a chilly bin with two snapper in it and ask Little to address the snapper issue.

 

– NZ Herald

 


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