Tuesday, September 16, 2008

Cullen plays hypocrite

Now I'm not warm towards John Key politically, but he is a smart guy, and he has had a real job. One thing that can't be said of him is that he is a failure - he doesn't need to be in politics, which naturally makes one wonder why he is, but that is besides the point.

According to the NZ Herald, Dr Cullen has claimed that Key is a "gambling currency trader" and that's the last sort of person that New Zealanders should want running the economy. Hilarious really, when Dr Cullen gambled taxpayers' money (money they didn't choose for him to gamble with) in many ways, such as:
- Buying the Auckland rail network for $81 million when Treasury valued it at $20 million tops, and before the whole network was bought back for $1;
- Buying the whole rail network for $1 after promising an Australian owned company monopoly rights to run across it, and to pay hundreds of millions of dollars to upgrade it, and then not enforcing the price it agreed with the company for it to pay to use the network;
- Buying Toll Rail well above the price that any commercial operator would have paid to buy it;
- Buying Air NZ after letting it nearly go into liquidation, instead of allowing Singapore Airlines to provide a 25% capital injection.

John Key in his previous career made business decisions for people who chose him to make judgements about their money. I'd trust John Key on macro-economic decisions anyday beyond the history lecturer, who has NEVER been trusted to manage the money of thousands of people before, and certainly never been accountable for failing to do so wisely.

Who would you rather have as your banker? John Key or Michael Cullen? To conclude, if currency trading is seen as "gambling" (which is an exercise that by and large is about taking a chance on blind odds in most cases), then what is using money taken from other people to buy businesses and assets at many times the price they were valued add commercially?

No comments: