PR gone bad

This is why Labour are screwed

Tough times ahead for families – 23 Mar 2008 – NZ Herald: New Zealand National news

Labour are screwed for this article alone. When middle New Zealand are hurting the Government cops a flogging. The problem Labour have got is that they don’t know where middle New Zealand is anymore. They probably think that middle New Zealand are gay, teachers or unionists. Even the “rich pricks” are suffering.

Locksmith Kelvin Green earns $60,000 a year to support his wife Lucia Mahugo and baby Karen.

The couple are expecting their second child so Kelvin is cranking up the overtime to bring more money in.

“Everything’s going up. Petrol goes up, deliveries go up, so food increases, but wages don’t,” he said.

Richer pricks are also suffering;

$80,000 income

Lorraine Williams and her husband Joel, who both work, are bracing themselves for a mortgage hike in June.

The couple already pay $1128 a fortnight for their home in Auckland’s New Lynn.

Lorraine, a 36-year-old apprentice co-ordinator, said the increase on their current rate of 7.69 per cent would cost another $200 a week.

“We’re going to have to tighten our belts even more.”

The increase in the cost of staples such as milk and cheese has also
affected the family, because they were part of school lunches and snacks for daughters Isabelle, 5, and Elizabeth, 12.

Lorraine said the few luxuries the family still enjoyed, such as the odd takeaway “will disappear altogether”.

She said movies and the annual family holiday would be cancelled this year to cut costs.

Are we starting to get the picture here, this is why a recession is inevitable. When pain comes, people stop spending, when people stop spending the economy stops growing and recession occurs. Now for the richest pricks.

Sini Yang and husband Waikeen Chan have a combined annual income of $100,000 a year.

But Sini, a self-employed insurance broker, and Waikeen, who works in IT, are planning household cutbacks to meet the expected rise in their mortgage payments.

Sini said they expected to lose another $100 a week when their interest rate was restructured in May.

The couple, who live in Auckland’s Greenlane, have also had to make allowances for their second child, due any day.

“We are having less dinners out and are not going to upgrade the car,” said Sini.

A planned trip to visit family in Malaysia and China has been postponed.

Labour are screwed. When times are tough the wealthy get richer and the poor get the picture.

But Michael, you said it wouldn't affect us

New Zealand Parliament – 1. Mortgages—Fixed 2-year Rates

Michael Cullen is a liar. Proven and without doubt.

Back in August last year he said;

“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.”

Now in our very own parliament today, in response to a patsy question by Charles Chauvel he said;

I have received reports of the continued fallout from the subprime mortgage crisis in the United States, and the subsequent unravelling of credit markets is putting direct pressure on the New Zealand banking system, in terms of its ability to lend. The banks are finding it difficult to access affordable credit, and are raising mortgage rates as a consequence.

Well now, that is a wee bit of a flip flop in positions isn’t it? August there is no such thing as a sub-prime mortgage problem and now six months later the woes in the economy are all the fault of the sub-prime mortgage crisis that didn’t exist. It can’t be both contentions MR Cullen, it just can’t. Therefore I put to you that Mr Cullen either lied to the public of New Zealand in August or he lied to the parliament today, either way he is a liar.

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Flip, Flop, Flap

Cullen: Recession unlikely – 20 Mar 2008 – Politics: New Zealand Political News, Analysis and Comment including 2008 election coverage – NZ Herald

Cullen has changed his tune over the recession we are going to have, or not have, or maybe we will but it is only a little one……

Finance Minister Michael Cullen is standing by his comment that it would be foolish to rule out a recession – but has now added that he does not think one will actually happen.

Dr Cullen was criticised yesterday by the National Party for saying on Tuesday that he could not rule out a recession given concerns about a drought, the weakening housing market and international financial turmoil.

Dr Cullen said yesterday that he did not regret what he had said, but wanted to emphasise that the comment did not mean he expected a recession.

So what is it Mr Cullen, recession or no recession, or will you just cook the books like you did last week to suit yourself?

Someone should remind Cullen….

ING forced to put freeze on two funds – 13 Mar 2008 – NZ Herald: New Zealand Business, Markets, Currency and Personal Finance News

Someone should remind Cullen that he said the sub-prime problems wouldn’t affect New Zealand, then show him this article from the NZ Herald.

Investment manager ING has been forced to suspend withdrawals from two of its funds in one of the global credit crunch’s first direct hits on Kiwi investors.

The indefinite suspension of withdrawals from the $353 million ING Diversified Yield Fund and the $168 million ING Regular Income Fund is effective from today. ING is also not selling any more units in the funds.

Both funds invested primarily in debt securities which have been hit hard by the credit crisis.

One investor who had tried to get her money out of the Regular Income Fund instead received a letter from ING informing her of the suspensions. “The fund has experienced an unusually high level of withdrawal requests in recent months,” ING wrote.

The 85-year-old woman put $300,000 into the Regular Income Fund 18 months ago and has since lost $60,000 on the value of her investment. “I thought I’ll get out of it while the going’s good.”

The woman said it was “maddening” that she was now being forced to ride it out.

Great, not affecting us but you can’t get your own money out if you try. Good one Cullen, and you think you can be leader of the Labour party?

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Cartoon: Mushroom cloud of doom

Cartoon: Mushroom cloud of doom [NZ Politics]

Cullen will of course deny that the US problems will affect New Zealand.


Cullen gets it wrong again

US credit crisis pushes up NZ mortgages – 11 Jan 2008 – NZ Herald: New Zealand National news

The headline Michael Cullen worked so hard to deny would ever happen here has finally arrived. Unbelievably, Cullen has always denied any link between the sub-prime mortgage problem in the US and the New Zealand market. He has tried on numerous occasions to hose down any speculation that the crisis would affect us.

He can deny no longer and he should resign for his complete incompetence. He has fiddled while the finance sector has burned.

Any person with half a brain could see the problem coming a mile off, that is perhaps the reason why Cullen failed so dismally to see what ever pundit in the finance sector has seen.
[quote]Westpac yesterday raised its fixed rate mortgages by 20 points, taking its two-year fixed rate from 9.4 per cent to 9.6 per cent.

The increase matches moves by New Zealand’s largest bank, ANZ National, within the last week.

The other two major banks, BNZ and ASB, say their rates are under review.

Mortgage rates are usually driven by the Reserve Bank’s official cash rate, which sets the benchmark for local banks.

But the latest rises are being driven by tighter world lending conditions, caused by weaknesses in the American economy.[/quote]

Watch now as more second and third tier lenders drop and watch the property market tank as over-stretched investors quit. This is why savvy investors cashed up last year, ready and waiting for the implosion. There will be bargains aplenty for those with cash. Those still strapped to their under-performing investments will quite simply only experience a river of tears. this alone will be enough to see off the socialists. Once again National will have to fix up an economy that Labour did nothing to improve.

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Down they go

10th finance company goes under – 05 Oct 2007 – NZ Herald: New Zealand Business and Personal Finance News

A 10th Finance compnay has gone down the gurgler with more sure to follow. This financial disaster is only going to grow as investors seek to get their money out. Even the most sound will teeter.

Clegg & Co is a smaller one but has gone down owing $15 million and investors in Five Star Consumer Finance have found out this week that they should expect 26c – 40c on the dollar. They'll get the lower number, they always do.

If the rumours are true another will drop very shortly.

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Reserve Bank blew over $700 million trying in bring down dollar

Reserve Bank sold $702 million to force down Kiwi dollar – 06 Aug 2007 – NZ Herald: New Zealand Business and Personal Finance News

The figures are staggering!!!

The Reserve Bank has effectively burned up almost three quarters of a billion dollars in its futile attempts to bring down the dollar. Cullen and Bollard should resign immediately following these revelations.

Three quarters of a billion dollars wasted, this is nothing short of criminal waste. How many years of Herceptin would this have funded?

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Nats promise to keep lid on interest rates

Nats promise to keep lid on interest ratesA National-led government would choke interest rates by reigning in state spending and boosting the economy's productive sector, finance spokesman Bill English says. Speaking to delegates at National's annual conference today,… [NZ Politics]

This is very pleasing to see and they have effectively silenced any argument from Labour about cutting spending by the way they have phrased it.

By focusing on wise sonverment spending rather than willy-nilly unsustainalbe welfare programmes new Zealanders will be much better off. 

I don't think this will work

Reserve Bank suggests floating gst – New Zealand, world, sport, business & entertainment news on

A floating GST rate, I can’t see this working to halt inflation, not when inflation is largely fueled by excessive and poorly controlled government spending. All this measure will do is pour money into the government coffers as GST rises on necessities that people can’t avoid and will also increase the prices and thus inflation.

I think it is time for a clean out at Treasury, they are clearly bereft of ideas.

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