Forum Archive Index - January 2002

[Marilyn Munroe <who.c@res.co.nz>]

In his novel David Copperfield. Charles Dickens wrote;

"Annual income twenty pounds, annual expenditure nineteen nineteen six, 
result happiness. Annual income twenty pounds, annual expenditure twenty 
pounds ought and six, result misery."

Donald Brash in his recent speech to the Canterbury Manufacturers Association 
seems to be saying that the N Z economy is suffering from the negative aspect 
of "Copperfield Economics", and borrowing from overseas to postpone the 
misery predicted by Copperfield economics.

Dr Brash said that he would be relaxed about this reliance on foreign capital 
if it generated exceptional economic growth, but this he claimed this was not 
happening.

He said that the usual suspect, the government, was not to blame, rather it 
was the poor saving rate of the typical N Z household was responsible.

I argue is that N Z households are poor savers because it pays them not to.
If a typical household was to take Dr Brash's advice to hart, where should 
they place these savings;

        Purchase managed funds and watch their profits be burned by fees or be  
                                        
        channelled into funds which are not suitable (Asian funds).

        Invest in N Z blue chip stocks such as Air N Z, Brierly, Fletcher 
Challenge.

I don't think so, more likely they will buy a boat, or buy a fancier house.

Until experience proves that investment is something other than slowly 
pissing your money against the wall N Z households will not save.

Boop-boop-de-do Marilyn

P S Another doctor thinks he has the prescription for our saving woes. Dr 
Cullen will take Govt surpluses and invest them for us, to provide for our 
old age (shudder!).


----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/chat/forum/