Wally's tales

It has just been reported that the value of the Euro has slid drastically, this is directly related to the collapse of the Greek economy, joining the Irish in their misery. The Greeks have been told by the IMF, if they want assistance, they have to reign their spending, more to the point, even sell off some of their Islands as first steps to assist themselves in their recovery. This suggestion has stirred a National fervour and rage at the authorities, who being blamed for allowing it to happen. The Irish and Greeks have had a wonderful time, both behaving like drunken sailors with their spending. In these Countries as everywhere else, there has been a lot of money sloshing around and available. Their lending institutions began a lending policy to a degree that normal prudence should have told them that they were courting trouble.

What has gone wrong with the world? We in our little corner of the world have had thirty of forty Finance Companies all go ‘belly up’. Some of these institutions have lost up to $500 million each. I know from personal experience that there are plenty of people in this world who are prepared to finance some dubious investments, especially if it’s with your money. If their enterprise comes off, and it’s a success for them, everything is wonderful. However if it should fail, it’s never their fault. ‘You are a stupid lender, you shouldn’t have lent me the money in the first place.’ A very disturbing factor is that when you examine the principals of the failed companies, the same names of the executives keep popping up. Yes, many have failed before but what a merry time at the investors expense they have enjoyed. Luxury cars, boats, and all the other toys that they buy with the punters money. Which brings me to another point, the part that the Trustees and auditors played, or to put it another way. Didn’t play. How is it that they didn’t that detect that many of these companies had been of the brink of failure for some years? Worse still it seems that some were on the later stages actually financing their operation from new money to make it work, when in fact they were broke and insolvent. In fact many were but now were running a Ponzzi Scheme, and our watch dogs missed it.

How things have changed, our forbearers never bought anything unless they had the money to pay for it. They knew the lessons they learnt from the depression and the tyranny of debt, and unemployment that came with it. Then someone discovered how to create credit from nothing. Nor was this credit backed by any tangible assets, just a book entry. We should have learnt from the 1929 depression, but we didn’t, when the second share market failure and collapse, it caught many, especially those who had borrowed heavily to ride the gravy train. It also caught me completely unawares, and wiped out all my savings which were in the form of Life Policies. The sum of money that I had invested, was to provide for my retirement, and should have bought me a home and as well, given me a comfortable nest egg. These savings were now equal only to the value of a run down small chicken coop, certainly no nest egg. However I was now wiser and richer in the knowledge of how the Money World worked. I discovered too that in the future if you wanted an easy and comfortable retirement, you had to look after yourself, and take into account cover against inflation, as it seems that it’s always waiting in the wings.

Real estate seem to be one of the prime factors in the down fall of New Zealand Finance Companies. And of course many were involved in reckless lending and many of their loans were set up to fail. The principals of good lending are not hard to follow. A sound tract record from the borrower is a good start, a reasonable input of the borrowers cash as a deposit, so that they are involved, and not able to walk away. A no deposit, interest only loan, is for clowns only, and a sure fire way to lose money, something they should have learnt at their grandmother’s knee. Any downturn and the borrower is free to walk away.

Another thing that really annoys me is the use of Sports people or other notable New Zealanders as front people who are assisting the taking in money and giving the Finance Company a gloss of respectability. Should you put yourself in this position, be prepared to accept the down side, and some of the investors may sue for recovery of their money.

Finally there is some sort of inverse law that is at work here. The more you steal, misappropriate, or lose through sheer incompetence, the lighter the penalty. The law should be changed to allow the recovery of monies that has disappeared into family trusts, or to close family members, no matter how well hidden.

This only leaves one further section involved and who should be shouldering some of the blame, and that’s the Investment Advisers. What a miserable bunch. All they seemed to be interested in was the commission they received. They seemed to be more interested in what they personally could make out of the investment, rather than if the placement was safe. Sadly in too many cases it wasn’t

Today like it or like it not, we have degenerated into a very violent society, I’m sorry to say much of the offending is carried out by juveniles, as well, what is called young adults, and it’s getting worse. These brats respect no one, challenge and resist any attempt to curb their bad behaviour. In my mind it’s all directly attributable to the lenient attitude of our societies’ educators, and as well the people in charge of making our laws and policies. All of which have been in force since their birth. The ‘No Corporal Punishment’ and certainly the ‘No Smacking’ brigade, have a lot to answer for. I’m sorry to say, that their chickens are now coming home to roost. Our schools seem to be teaching a culture of questioning, many of the principals that we live by, and goes to make up what we call civilisation. We have also bred an army of lawyers, who pontificate and do their best to mitigate any infringement, which normally should be enforced by law, no matter how bad the deed. Further more, the educated people who know everything, and at this moment firmly believe that talking and negotiation, will solve all things. My initiation to this doctrine came in 1939 when the British Prime Minister returned from a meeting with the German leader, Hitler, clutching a piece of paper, saying to all other adherents to this nonsense, ‘Peace in our Time’. ‘Look!’ ,’This is What I have achieved by persuasion, and negotiation’. Well, peace anyway for the next couple of months. As they say if you don’t learn from History, you are going to be forced to repeat it. As far as I was concerned, at 18 years of age I was suddenly inducted into the New Zealand Army, somewhere I particularly didn’t wish to be.

Today nobody gives a damn about anything, no respect is given to those doing their best to enforce the law. The police are treated with contempt, more often than not, some of these ‘out of control people’ are young drunken louts, prepared to give it a go, some will actually take on and fight with the police. No one is going to tell them how to behave. They also know without fail, someone will come rushing to their defence, telling anyone prepared to listen, their ‘Rights’. We have on the sideline too, Politicians saying and legislating, that they know how we should be bringing up our children. You have to wonder about this as some of these folk don’t actually have children of their own. Further more, we must not think of arming the people who are in the front line, and at times that’s all that’s between us and straight out anarchy. What a lot of educated clap trap. Would these same people be prepared to front up, and assist the guy in the ‘Hot Seat’ out on the street unarmed? Further after a crime has been committed, it’s always the perpetrator that help comes rushing up to. The victim always seems to be sidelined. Who is he anyway, probably dead or in a Hospital?

Sometimes some of these criminals are straight out idiots, so stupid that at times that you just have to laugh at their antics. Today, as reported in the ‘Press’. A looser borrowed his brother in Law’s, ‘Hi Lux’. Went out into the City and stole a $18,000 boat and trailer. While leaving the scene of his crime, dropped his cigarette, while retrieving same, lost control, and crashed into a tree, rolling the truck. When the Police arrived, they discovered adding to his troubles that he was a disqualified driver. Further more, just to give him a really bad day, found he was over the limit for alcohol. It will be interesting to see how the justice Department will treat this man. Justice is remarkably tolerant at times, another law breaker this week, was in the dock for his twenty fifth conviction over the past twenty five years. Drunk in charge of a vehicle, and driving while his licence was suspended. What is wrong with the way we dispense justice?

How bad do you have to be, to get these people off our roads and endangering other road users? I’m actually having problems with Justice it’s self and some of the verdicts recently handed down. One that won’t go away was the conviction of Peter Ellis. I have read the two books written on his trial, I agree with both of the Author’s findings. His trial was likened to enactment of a fairy tale, some of the evidence just plain fantasy. Another was when David Bain charged with the Murder of his family. He managed for the weeks of the trial to say only two words, ‘Not Guilty’. His Lawyers from then on did all the talking. This is very strange Justice. How do you get a fair trial when the accused sits in silence and is never questioned. Finally the ‘peace nicks’ a trio who slashed the radio domes at Waihopai Blenheim causing one million dollars of damage. Guilty in my mind and possibly every other New Zealander apart from the Jury. This Jury found them ‘Not Guilty’. It would be interesting how and why they arrived at this decision.

I travel across town every day, naturally I come across many events that are strictly ‘City’. Not a week goes past that I don’t get in the way of a Fire Engine, Ambulance, or Police Car. These are not normal driving cruising events, but a full displays with hooters and lights. You hear the noise first, but you have no idea if you are involved, or where it’s coming from. As soon as I actually spot the Lights, I pull over and give way to whatever has the various authorities so excited. Never be in too much of a hurry to resume your journey should it be a Fire Engine, as they have a tendency travel in conveys. I’m often in the firing line when on my daily promenade, as I tend to travel only on the main arterial routes, always looking for the ‘Green Wave’.

By passing through the Central Business district you come by default an authority of the health of the various business you pass by. For instant, I can tell you that the motor industry is still undergoing a shake out. Because in the last month I have observed that two car lots, that appeared to the casual glance to be successful, but have been cleaned out of vehicles, and vanished from the surface of this earth leaving only their signage. I don’t count Asian takeaways, or mini restaurants, as they continually seem to change. Probably they are all running on a shoestring right from the start. This is also the main fault of most business that fail. They all seem to be undercapitalised, which is fine if the economy is expanding, but a death sentence when things slow down.

There is alway things of interest that you come across as you drive through the CBD. Yesterday a water main blew out and sent a three to four story column of water into the air outside the Plaza Hotel. Two police cars were quickly on the scene and did their best to flag away the congested traffic and pedestrians. No one wanted to move on until they had a good look at the spectacle, me included. Result, a really good ‘snarl up’.

The one thing travelling cross town that worries me, and that’s ‘tail gating’ by other motorists. The worst street for this seems to be Papanui road. The Road is now very narrow as they have included a cycle lane on each side of the road. Sprinkled the road liberally with Pedestrian Islands, and if that wasn’t enough, included two Bus lanes. I try to keep about twenty metres from the car I’m following, but I can’t do much about the idiot that’s following me. However the space I’m keeping from the vehicle in from is a constant attraction to all and sundry, a slot that must be filled. As they scrape in, as they do, I just drop back yet again. And why do I do this? Over the last few weeks I have observed several multi, nose to tail accidents, all caused by following too close. At least I halve my chances of being involved.

Nobody these days allow their children walk to school. They are all driven, or if you are brave enough, ride a bike. The congestion this driving your kids to school probably doubles the traffic around 9-00am and 3-00pm. I try to get my doctors and dentists visits outside these times, as both have their offices in close proximity to schools, where mothers double, treble, park to pick up their little darlings.

I mentioned cyclists, these road users are a special protected breed, they must all be colour blind as they ignore ‘Red” lights. They also have trouble of realising that they are no longer pedestrians, that they are now expected to obey vehicle road rules. You are not expected to ‘jump off’ your bike and start walking when you are confronted by a pedestrian crossing, claiming the right of way. Riding two or three abreast is not going to endear you to other road users either.

There is no doubt that New Zealand is in Financial trouble. You would think that our elected politicians who are not now occupying the treasurer benches would be offering their help, even to the stopping their political games. Perhaps, even suggesting the formation of a coalition Government, and to get behind a concerted recovery. Not so, no matter what is suggested, it is ridiculed. Whenever other parties can score a political point, they go for the jugular. The media is no help either, they seem to think that the situation is all one big joke, and only a worthy news source. They too are entering into the game being played by the opposition with the result that they are a constant pain in the Butt. Benefit fraud is rampant, some of our unemployed even position themselves in holiday resorts where there is no work. This means that their life style that they have adopted won’t be interrupted. I observed these useless twits when living in Queenstown. Many of the unemployed have positioned themselves handy to the ski fields, grouped together for economic reasons, rented palatial homes, and pursued their disgraceful chosen lifestyle.

We are told the Government is borrowing some Two Hundred and fifty million every week just to keep the Nation afloat. This is clearly unsustainable, and a sure path to an even more desperate situation. In fact we are living in an fools paradise, so everyone can carry on living beyond our means. As one method of aiding a recovery, it has been mooted that any minerals located in the Parks be investigated, if mining can be carried out without being too invasive, it should be looked at. The screams of rage from the Greens can be heard from all over the country. We have a problem here too. Many of the Greens have never really held down a proper job. Should a Financial crunch come, they will be the first to get sent down the road. Have they considered that, if this situation actually comes to pass? Then they can console themselves by sitting in their pristine forests admiring the view.

It would be in all their interests to take a look at what is happening in Ireland. Their situation is a little more advanced than ours. Their Banking system too has experienced a meltdown with the housing market in free fall. They as a result are looking at some very desperate measures. I heard a news item recently that they are considering a 10% to 20% cut in the wages to all public servants. In my opinion it’s possible that the UK could have done more to assist, but I feel there is still some lingering bad feeling after the ‘Troubles’, and from the Bombing of London, as well, for remaining Neutral during the War. In some cases it was reported at this time that help was even being offered to the Axis.

We as a Nation have always been busy leading the way with knife edge social policies. Accident Corporation is one, initially it’s concept was clearly defined. Various Governments have added on a multitude of other services that have nothing to do with accidents, various illnesses, even suicide. Of course this loading has made a situation where the Corporation is no longer viable. This doesn’t exactly please the public who are stuck with extra premiums. Speaking of these people who free load, we also have another group, the adventurous, or the just plain reckless, who engage in dangerous sports and activities. They know should they get hurt, the State will be there to pick up the cheque. They pay little or nothing to the scheme, and they are overloading the system.

Another area that requires attention and that’s the constant Maori need for funds and hand outs, they are becoming a persistent drain on our resources. I think what initially should be looked at, and that’s the question of ‘What is a Maori’. With the money that sloshing around in that area, there are too many claiming to be Maoris that really have a very tenuous claim. By saying this I will make myself very unpopular, but after a half cast you, would no longer have any existing rights. You would then become just a plain New Zealander. We have no need to guilty about what happened over two hundred years ago. The Maoris as a group have done very nicely indeed. They have had access to generous pensions, medical care, and education too if they wished to take advantage of it. I have only lived in the South and any Maoris that I have come into contact with, have been hard working, and all round good citizens. Most of the problems seems to be in the North. All are clutching the Treaty of Waitangi which is a very shonky document indeed. No matter how you look at it, it would never stand any legal challenge, unless the Maoris and politicians rewrite it. While they are on the job, perhaps they can look at the Land Clearances back in Scotland when our forbearers were driven off their farms.