Morningstar

Labour’s ‘big tool’ policy turns out to be a big dog

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Aside from a half hearted attempt from the Labour Party spokesman for Fairfax, Vernon Small, and Brian Fallow who has taken time off looking around the globe for catastrophic global warming and a carbon trading system that works it’s not been a particularly welcomed policy release. The exporters love it though with a free lunch on the backs of the working poor.

We wait for the endorsement and backing of Labour from the Property Council, first of all Labour are going to drop their tax rate from 28% to 15% by introducing a CGT and now they are going to give them the gift of lower interest rates which is generally the biggest cost by taking money out of the lowest paid who will now be earning more in retirement than when they are working.

 

Labour’s proposals to allow the Reserve Bank to adjust KiwiSaver contributions rather than interest rates to control inflation could hurt savers and see debt repayment delayed until retirement, KiwiSaver experts warn.

The Labour Party this morning announce proposals to change New Zealand’s monetary policy tools by introducing a variable savings rate for KiwiSaver.

The policy would require the Reserve Bank to use changes to the rate of people’s KiwiSaver contributions rather than interest rates to control inflation while taking pressure off the over-valued kiwi dollar.

Labour would also make KiwiSaver compulsory and increase contributions from the current 6 per cent combined employee and employer contribution to 9 per cent over time.

According to sorted.org.nz ?if you earn?$600pw and you save at Labour’s compulsory rate you will enjoy a retirement income of $496pw and when added to the super payment of $366 you will be earning $262 a week more in retirement than when you were working and struggling to get ahead. ? Read more »

Someone should tell Gareth that explaining is losing

Parody ? a Stuff article re-written

Gareth Morgan has hit back at reports he labelled investors in his KiwiSaver fund “pathetic”, saying instead only those who chose to believe “100 per cent crap” reports he interfered with investment process, were pathetic.

In his blog,?Gareth’s World, the Kiwisaver fund manager said media reports he was interfering with investment practices were “far-fetched” and had no basis in fact.

Morgan?has admitted in the past that his investment knowledge is limited, but in a pre-recorded interview with NBR, lashed out at investors who only wanted “instant gratification”.

The interview was recorded before?Saturday’s release of Morningstar?s fund comparisons.

Gareth Morgan Kiwisaver have struggled with this shift, bizarrely implemented half-way through the year,?and are coming last in the table.

But Morgan said they would not be reverting back to their former style, which was based on defensive stocks? for the sake of results.

Investors would have to put up with “short-term pain”.

“All some people do is look at the league tables and that’s all there is to the game for them. Well, they’re pathetic really.

“Before we said let’s change the style a bit, I thought the investor base was probably 80-20 in favour of a style change because we were never going to make money and be persistent winners of the Morningstar tables investing the way we did. That’s all been forgotten now,” Morgan said.

“People expect instant gratification or gain with no pain. It’s just pathetic really. I can’t think of any activity where you change like that and there’s not a short-term cost as you go through the changes,”?he told NBR.

Hitting back at media reports however, Morgan wrote in his blog today that he had been working on “how to enhance our performance analysis capability”, and was attending training to assess public relations skills.

“We have a medium term strategy set by the Investment Board and we have a fundamental and technical department and senior analysts who are responsible for the week to week strategy and performances – the two are quite separable over the short term.

“To suggest they’re not is far-fetched and has no basis in fact,” he said.

Mad Morgan now wants to exterminate Phoenix Fans

Not content with giving those left in his?under-performing?KiwiSaver fund reasons to ditch it, New Zealand’s foremost economist, philanthropist, soccer coach extraordinaire, feeder of orca and killer of cats, Gareth Morgan, has decided to shoot his other foot off.

The customer is always right Gareth? Apparently not with Morgan who has labelled Phoenix fans “pathetic” and unsophisticated because they want their team to stop being the A-League’s ‘open goal’.

If only the Dom Post had their sports writers doing the news because they would blow Kim DotCon sky high but then again, the sports writers got this by that time honoured tradition of listening to Radio Sport:

“The A-League club’s co-owner, who has admitted in the past that his football knowledge is limited, has also claimed that many fans “don’t know much about the game anyway” and are only thinking about themselves, rather than the long-term viability of the club.”

Good one Gareth. After wanting to exterminate half of your fan’s pets, you now call them drongos for paying good money in other to see their (or rather ‘your’) team get thrashed. You should become a motivational speaker:

“Morgan let rip at fans for wanting “instant gratification”. He said the club’s change in football philosophy, to a more attractive, possession-based passing style, was required for success in the long-term.

No, not if you a). Not have any fans, b). right-size to a public park to fit attendance and c). have decent players avoiding your LOSER team like the plague.

The DomPost says the Phoenix have struggled with this shift, “bizarrely implemented mid-season, and are last”.

Maybe someone ought to remind Morgan what Wellington said of the French after Waterloo (the last time the French put up a decent scrap), “They came on in the same old way and we defeated them in the same old way:”

“But Morgan said they would not be reverting back to their former style, which was based on solid defence and getting balls into the box from the flanks, for the sake of results. Fans would have to put up with “short-term pain”. The bigger picture is far, far more important than the short term,” he said”.

Sir John Kirwan should now send the Blues wooden spoon to the Hurricanes’ Mark Hammett (who must be searching for a new role) given St Gareth used his gains from flogging ‘his’ fund to KiwiBank, to get a slice of the Canes.

I pity the punters who pay money for merchandise, tickets or even, buying a sponsor’s product:

“All some people do is look at the league tables and that’s all there is to the game for them. Well, they’re pathetic really.”

Then again, Gareth threw a wobbly at Morningstar for calling a spade a spade on this erratic clown’s KiwiSaver Fund. St Gareth doesn’t like league tables indeed he is allergic to them maybe because it is about accountability.

“People expect instant gratification or gain with no pain. It’s just pathetic really. I can’t think of any activity where you change like that and there’s not a short-term cost as you go through the changes.”

How about your philanthropic trips abroad, TV appearances, mad schemes to ensure we get overrun by rats and stoats, spending vast sums to fatten up Penguins, calling farmers ‘retards’ and wanting to form Gareth Morgan Farmers to rival Feds. That sounds a lot like “instant gratification” to me.

But he is not done. He goes onto trash the Club’s few remaining supporters as ‘thick’ and somehow thinks ‘his way’ will attract a new wave of supporters. Yeah the opposition to see how much they’ll win by. Can I humbly suggest he actually leaves the coaches to coach and the players to play:

“Fans are a cross section of the public, you know. A lot of them don’t know much about the game anyway and certainly, in my view, think only of themselves, not about the future of the club. This club has got a whole lot of stuff to do in order to be sustainable, and that’s what we’re going to do.”

This little angry man has a Caesar complex. Maybe we should introduce him to Michael Williams in Auckland – I think they would get on like a house on fire.

I never thought I would write this but “Bring back Terry”.