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Bernard Hickey talks with Marcus Lush on Radio Live at 6.50 am about government borrowing, Allan Ludlow's 6 year prison term and Europe's moment of truth

Bernard Hickey talks with Marcus Lush on Radio Live at 6.50 am about government borrowing, Allan Ludlow's 6 year prison term and Europe's moment of truth
20th Oct 11, 11:27pm by Bernard Hickey
<p> Bernard Hickey and Marcus Lush talk every weekday morning just after 6.50 am about business, economics, markets and personal finance.</p>

Every weekday morning just after 6.50 am I talk with Marcus Lush on Radio Live about the latest news in business, markets, economics and personal finance.

I usually send through suggestions the night before or earlier in the morning.

Sometimes we veer off into other areas or pick up on things that happen overnight.

But here's my suggestions as of 11.30 pm this evening. I'll update later with a link to the audio.

Marcus,


1. Here's a good news story. I discovered a small business success story today from Stewart Island. It's called Glowing Sky Merino and it makes and sells merino cloth clothing through its own stores on Stewart Island, Invercargill, Dunedin, Waiheke and Wanaka. See more here.

2. The founder of the first finance company to collapse in 2006, Allan Ludlow, has been sentenced to 6 years in prison for stealing NZ$3.5 million from investors. National Finance 2000 was the first of 65 finance companies, mortgage trusts and investment funds to be frozen or collapse between May 2006 and this year, interest.co.nz's Deep Freeze list shows. Used car lender National Finance 2000 owed NZ$25.5 million to 2,026 investors when it was put into receivership in May 2006. About 48% of the money was recovered and repaid. See more here.

3. The government borrowed another NZ$900 million today. Much of it is being used to pay for working for families, tax cuts for those on higher incomes and for NZ Super for people who work. The young will have to repay the debt. Some of it is due to be repaid on 2023. John Key will be long gone by then. And the youth of today should remember who decided to borrow the money they will have to repay. See more here

4. This weekend will be crucial for Europe and the initial signs are not good. Germany and France are divided with one day left. See more here at Bloomberg.

cheers
Bernard

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6 Comments

by  skudiv  |  21st Oct 11, 4:39am 1319125178

Govt is borrowing 5% of GDP pa, and we are not in a recession.  If we do have a recession we are stuffed, borrowings will increase in notional terms, and as GDP drops this will increase all our previous borrowings in terms of GDP.  Debt to GDP spikes in Recessions without borrowing because of the drop in GDP, its a race to the bottom.  We need to get all the politicians out that are hell bent on forcing us into bankruptcy.  Thats all of them I have not heard a sound plan from any of the minoror major parties.

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by  Wolly  |  21st Oct 11, 5:55am 1319129720

The evidence to show how the annual budget can revert from deficit to surplus has not been presented..instead we have blather and spin and promise.

The prospect for some sort of boost above this new normal, just does not exist other than in the dreams of Bill English and those who really did expect a multi billion dollar rebuild to be underway by now in chch.

What we are left with is the commodities bubble Bernanke kicked off and which Beijing boosted. Do you think the commodities export sector will generate the govt revenue numbers needed to produce that surplus, at a time when the govt spend on WFF remains a deadweight on the economy...and the annual landlord's 1.1billion dollar subsidy is set to rise!........ well do you?

Meanwhile we see the bonus culture cemented in place in the govt tv SOE, and we know the salaries and bonuses are utterly bloated in the senior civil service quarters. Expect the fools responsible to bump all the senior higher bloated salaries ...even higher when next they play their silly game with taxpayer money.

All the evidence points to more of the same rubbish from wgtn. More spin and blather and humbug and bloated bonus boosted payouts, more promises and story telling.....the prayer sessions take place on the 9th floor of the Beehive every day....

I will believe Bill English and his mandarins when I see those mandarins taking the 10% salary cuts each year for the next five years.....fat chance of even 1% right!

I will believe when I see the Clark vote scam WFF being pulled apart.

I will believe when I see an end to the landlord's 1.1billion dollar subsidies.

I will believe when I see an end to the govt directed debasement of the currency.

 

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by  duncwilson  |  21st Oct 11, 10:53am 1319147608
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by  ngakonui gold  |  21st Oct 11, 11:26am 1319149582

if mr ludlow gets six years how many years can captain rod producerdick expect.

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by  kane02  |  21st Oct 11, 8:16pm 1319181392

He'd get less for murder

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by  Kate  |  21st Oct 11, 9:11pm 1319184667

That's a stupid comment;

The mandatory sentence in New Zealand for any murder is life imprisonment unless it is a mercy killing see R v Law (2002) 19 CRNZ 500 (HC), or where there is evidence of prolonged and severe abuse of the defendant or their children the court will be able to consider a lesser sentence e.g. a 5 year or 10 year finite sentence.  

Non- parole period of no less than 10 years.

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