South Canterbury Finance Limited

[minimoke]

, but I don't know that they were 'stupid' - a reasonably quick payout might mean they've made an okay return with no capital risk.

Do you really think the Timaru grannies have the slightest bit of knowledge of the workings Dep Guarantee. I don't think they had a clue - instead they just blindly put their money into SCF to"support that nice Mr Hubbard who has done so much for the region over the decades". I hold POA for a depositor so I'll see just how long it does take to get the loot back.

[Alan3285]

Thats abit rough mate.

We've all had out fair share of losses. Enumerate was just passionate about his investment.

Those that continue to tell you they've never made loses and only wins are just full of ****., and there are a few of them around.

Yep - we've all made losses in the past (and will do again).

Enumerate was playing the numbers. His analysis was good, just it didn't pay off this time. A healthy overall return through more ups than downs in his portfolio I expect.

For those that aren't up to it (not aiming at you Dr_Who!), there are plenty of nice safe bonds out there that will give you a small margin over bank desposits. MCC is placing one shortly. ShareTrader isn't really their home though. Watch for all the 'I told you so' comments from those people in the letters pages.

Alan.

[Beagle]

Thanks Minimoke... guess that's meant for me

Have to say, don't feel too guilty about having put my money in. Didn't seem like getting 10.25% for the last two years (and until I am paid back) was a bad decision at the time. Still doesn't. Risk vs return, same as any other investment anyone on here holds. Probably make up for the 10,000 SCFHA I'm left holding to go with it.

Look, I have to fess up and admitt I too was in receipt of 10.25% for 18 months and was very relieved to get my money back in May. Fortunatly I avoided the temtation to buy into SCFHA's. I can't say I wasn't tempted, I certainly was especially when they got down to 10 cents a couple of times, fortunatly with my accounting experience and with the able assistance of David Hillary's comments, I learned to read through the complete bulls#it that was SCF's financial statements and didn't get caught holding a single cent of SCF's securities when the music eventually stopped.

What did surprise, is how long they lasted.

[Alan3285]

voters had no idea about the possibility of any govt guarantee at that time

They voted for a bunch of people who had already demonstrated their contempt for freedom of choice, and for that freedom to be expressed in the market deciding who stands and who falls.

Alan.

[minimoke]

Thanks Minimoke... guess that's meant for me

.. Still doesn't. Risk vs return, same as any other investment anyone on here holds.

But its not Risk v Return. If you deposited money in SCF there is zero risk you will loses your deposit. Thats because I'm busy working to pay tax to back your decision. So no risk and a guaranteed return. Contrast that with say an investment in shares - ALF, for example. Maximum risk virtually no return and no tax payer sitting behind them. Or invest in a dairy farm - there's no tax payer sitting behind these people giving them their initial capital back. The Deposit Guarantee has distorted peoples whole perception of investments.

[MrDevine]

I guess the question is Lizard, whether you would have put your dough into SCF if it didn't have a government guarantee? I still can't for the life of me fathom why the govt backstopped this outfit. If you put your dough in there in the belief that whichever way it went you'd get it back, then I think frankly it's fraud. You should donate that money to charity, because at the end of the day its my tax dollars. Sorry for the rant, but one of the sensible things this govt has done in recent times is to let the market dictate losses. Caveat, BNZ and Air NZ could be argued are strategic assets. AIR has done pretty well with govt backing too. Mr D.

[fungus pudding]

[QUOTE=MrDevine;317649] If you put your dough in there in the belief that whichever way it went you'd get it back, then I think frankly it's fraud. You should donate that money to charity, because at the end of the day its my tax dollars. QUOTE]

And my tax dollars too, but to call it fraud is plain ridiculous.

[Romulus]

Has anyonr read The Treasury note- if not read

[MrDevine]

Why? If you put your money into something that you believe is dodgy, and theres a chance it might fail, but oh its fine everybody else will bail you out? Its a semantic argument I know, if I've offended anyone I apologise.

[J R Ewing]

Let's be fair about the deposit guarantee, it's always easier with hindsight. When it came into force during the GFC, I was feeling pretty nervous about money on deposit with the trading banks. A crisis of confidence in the banks would have been disastrous for a great number of businesses even if it didn't actually tip over a major bank or two. Whether it should have been offered to finance companies is another matter, and perhaps the Govt should have cut these adrift rather than extending the scheme as well.