Having got ourselves into a debt-induced economic crisis, the only permanent way out is to reduce the debt – either directly by abolishing large slabs of it, or indirectly by inflating it away.
Possibly .. well until Oct 2010? So the Govt wont want it 'falling over' however there must now be doubts about disclosure when the Govt accepted SCF into the gaurantee scheme late last year as it would appear from the a/c's to 30th June 09 that impairments have been significant for most of the financial year. This may give the Govt 'wriggle room' however I would expect the Govt to perhaps at least underwrite a discounted sharemarket listing or similar to try and make the problem go away?
It all comes down to how badly the loan book is impaired , and when a reasonable person would have considered provisioning appropriate , imo.
There does seem to be a certain amount of arrogance in this fellow Lachie
McLeod dismissed concerns over these arrangements as "great bloody gossip from The Viaduct".
and
"Some of our related-party lending is the best lending we know," he said.
and
And everything we do, we talk very closely with our auditors [Timaru-based accounting firm Woodnorth Myers], our trustee [Trustees Executors] and of course now we've got a new partner called Treasury [monitoring the Deposit Guarantee Scheme]."
Here you go ..... PGW , Southbury and SCF merge creating a mega Ag/Finance Group (not dissimilar to Wrightson before they sold their Finance division to Rabo) with the Crown as 19.9% shareholder .... with non-performing property loans 'quarantined' in an 'Adbro' style Co owned by the Crown and Hubbard?
Here you go ..... PGW , Southbury and SCF merge creating a mega Ag/Finance Group (not dissimilar to Wrightson before they sold their Finance division to Rabo) with the Crown as 19.9% shareholder .... with non-performing property loans 'quarantined' in an 'Adbro' style Co owned by the Crown and Hubbard?
M
IT doesnt matter what kind of mud you put in a pot or how you stir it, it is still mud. I assume if SCF goes it will drag down PGW also?
Having got ourselves into a debt-induced economic crisis, the only permanent way out is to reduce the debt – either directly by abolishing large slabs of it, or indirectly by inflating it away.
Reply With Quote
Originally Posted by Dr_Who
Bookmarks