Login/Join to access your personalised dashboard now! Returning user? Log in or Register
Log in to your GrownUps

Banking mythes with the neo liberal economy

This topic contains 32 replies, has 7 voices, and was last updated by Profile photo of jens jens > 7 days ago.

Discussions Politics Today Banking mythes with the neo liberal economy

Viewing 3 posts - 31 through 33 (of 33 total)
  • #1711115
    Profile photo of Hero42Hero42
    Member
    Member since: July 18, 2008
    Topics: 65
    Replies: 11575
    Hero42

    New Zealand briefly had a government guarantee for retail bank deposits from October 2008 to December 2011. It was introduced at the worst point in the Global Financial Crisis to stop a run of deposits across the Tasman to the banks’ parents in Australia, where the Kevin Rudd Government offered a guarantee for depositors there.

    It was quietly dropped once global markets had settled down and was replaced by a system called ‘Open Bank Resolution’. This means there is no Government guarantee and if a bank was to fail, the Reserve Bank would shut it down and manage a capital restructure overnight so that it could re-open the next day. One way a bank’s capital could be restructured by the Reserve Bank is through a ‘hair-cut’ for depositors. Essentially, the Reserve Bank would slice a certain percentage – say 10% – off the value of term deposits to allow the bank to re-open with enough capital to survive.

    Cheers 🙂

    #1711133
    Profile photo of paulinempaulinem
    Member
    Member since: July 8, 2006
    Topics: 14
    Replies: 782
    paulinem

    Halycon we have NEVER had a social credit economy, Keynesian yes which I admit  is similar to SC . Cracknell was only one member of parliament, how can you say he was responsible for the banking problems !

    I strongly suggest you reread the post I put up yesterday which was written in the NZ Herald by an expert in economic banking management. As he correctly  pointed out Austral an banks like ANZ ASB Westpac etc do not risk their investors savings to lend out they CREATE the money they lend. But these banks then expect the loans to be paid back in real hard earned monies. This is the reason they have been making obscene profits. This is the reason that our housing market has become obscenely over valued. Its the reason our rents are obscenely high as speculators with good capital reserves are the only ones that can afford to buy the overvalued homes. Then the speculators use this to make an economic killing by overcharging the rents of these homes they  then rent out .

    #1711203
    Profile photo of jensjens
    Member
    Member since: May 3, 2006
    Topics: 22
    Replies: 7553
    jens

    All credits (Keynesian, “Social”,  bank, and private) become just  donations or  procurement if not  repaid, and even paulinem will have to admit that there are  limits to what  can be donated or  just taken.

Viewing 3 posts - 31 through 33 (of 33 total)

You must be logged in to reply to this topic.

Advertisement
 
Join Free.  Register for newsletter updates & complete your membership for full site access.  Welcome & Enjoy!

Register Free today and go in the draw to win a $50 gift card!

Close this Window
 
GrownUps

GrownUps, New Zealand’s best lifestyle website, social club & brain training hub for 50+.

Join 145,000 GrownUps for Free. Register now to receive our regular email newsletters to keep you up to date & complete your membership to access all areas of the site.  We can’t wait to meet you.

Enjoy!

Register Free today and go in the draw to win a $50 gift card!