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Re: [sharechat] Charles Dickens & Donald Brash

From: "" <>
Date: Sun, 27 Jan 2002 20:18:52 +0000

Hi Marilyn,

>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 
>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.

Absolutely amazing deduction by Brash!  How much do we pay this guy?

I am sure the average bloke/shiela on the street could have told him 
that years ago.

>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
>I argue is that N Z households are poor savers because it 
>pays them not to. 

You just got my vote to be Reserve Bank Governor Marilyn.  Pity it 
isn't an elected post :-( 


>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).

Well there are more of them than us, so obviously we should put our 
money over there.   The NZ market is only 1% of the world economy 
(or therabouts) so we might as well ignore that.

>Invest in N Z blue chip stocks such as Air N Z, Brierley, Fletcher

Yes top New Zealand businessmen run/ran those.  They must be good 
because they are earning world class salaries

>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.

I have a better idea.  Why not put a tax on owning houses, so that 
people who own their own houses simply pay an amount to the 
government each year based on the value of their house?

That might just skew the scales enough to prove that the old club of 
"leading New Zealand Business men" always know how to invest money 
better than the average New Zealander.

The only other option would be to change the Reserve Bank economic 
theory, but since it came out of a book it must be right- Right?  
We all know that the only thing we need to do is keep inflation 
between 0 and 3 percent and NZs recovery is assured.  There is no 
need for any policy in any other area.  It is far better to just 
distort the facts until the theory works. SNOOPY

Message sent by Snoopy 
on Pegasus Mail version 2.55
"Dogs have big tongues, so you can bet they don't 
bite them by accident"

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