Am I going to "own" another bank?

Amidst the negotiations to use future US taxpayers' money to bail out banks who have lent to the barely creditworthy, UK mortgage lender Bradford and Bingley looks about to be nationalised. Last ditch efforts to save the institution are underway, but according to the Sunday Telegraph B&B has a £40 billion mortgage portfolio of which most comprises self-certification and buy to let loans. The types that didn't require proof of salary to be given. In short, it lends to those with nothing left if, as has happened in the past year, property values drop below the value of people's mortgages.

The UK government isn't letting those who borrowed so imprudently (or deposited with such an institution) bear the costs of their risks - no - it is taking on the so called "toxic mortgages" and then polluting the bank it already nationalised - Northern Rock - with them. That allows the rest of B & B to be taken over by another bank - nice, so socialising the losses and privatising the profits. The £24 billion in deposits would be owned by another bank, but th £42 billion in useless mortgages - the British taxpayer. Yes £1000 of extra debt for every adult and child.

Although B & B shares are now worth 20p when they were worth £2 in April, any such takeover should include the shares which should be rendered useless.

Hopefully the taxpayer wont step in, as it didn't need to when Lloyds TSB took over HBOS. I don't doubt the willingness to do so, and how that is affecting those negotiating to buy the assets of B & B, as they will want the liabilities to fall on the taxpayer.

Gordon Brown's economic genius at work - 10 years of budget deficits during the good times. Labour has been pump priming the economy with debt, borrowing from future taxpayers, and within 18 months will be out of power.

The Conservatives may then gain power, and face the reality that spending needs to be cut, quite dramatically, and Labour will point fingers and say how "mean" they are.

At what point should those who took out credit to speculate on the housing bubble have to pay for their unfortunate mistake? At what point should those who deposited with banks who did the same pay also? In the UK the first £35,000 anyone deposits in any financial institution is guaranteed by the Financial Services Compensation Scheme - so I hardly think Labour's rank and file voters are going to lose out anyway.

When will the thieving from future taxpayers end?

Sunday Herald joins Green religion

Yes, sadly, it is five weeks to the general election and the Herald on Sunday devotes its editorial to what? Wanting tens of millions spent subsidising cyclists and pedestrians to cross the Auckland Harbour Bridge. Crime, healthcare, education and the economy aren't as important as wasting a fortune for a few tourists and the ultrakeen to get $40 million of other people's money spent on a cycle/pedestrian way.

As I've said before, and so has leftwing columnist Brian Rudman, this is a colossal waste of money for something that would be barely used. It is especially inappropriate to want to waste precious road users taxes on a project that doesn't stack up.

The sheer banality of the editorial can be summed up in this statement: "A vociferous cycle lobby has good claim to the moral high ground in the debate. Climate change, traffic-choked roads and the remorselessly increasing price of fuels drawn from the earth's dwindling and finite reserves all argue for the value of getting more commuters out of their cars."

Where is the moral high ground is making others pay for something you want people to use? To demand something you pay nothing towards? What nonsense is the claim that fuels are remorselessly increasing in price? Do they not follow the fact that oil prices have been easing downwards for the last month or so? What IS the value of getting more commuters out of their cars except - to those commuters? Actually the NZ Transport Agency DOES value reducing congestion, fuel wastage and pollution, and this project doesn't even come close to producing economic/environmental benefits that exceed the costs.

The only people advocating this project are those handful who will benefit from a new facility they wont have to pay for, and those worshipping the Green Party religion on transport, called its policy. Can't New Zealand get a Sunday paper that's 10% as good as either the Sunday Telegraph, Sunday Times or the Observer?

McCarten talks nonsense again

Yes, you didn't have to wait long for failed socialist Matt McCarten to treat the failings of an excessively generous central bank and poor judgement by banks lending mortgages to bet on the property market at the bottom end(and those borrowing with little to no deposits hoping the same) as the free market proven wrong.

Rubbing his hands with glee like any typical authoritarian who can't wait to be proven that if you he and his ilk could be controlling what people do with their money, it would all be easier. His NZ Herald column is a triumph of banal slogans and offering nothing, but his sneering envy that he never got a chance to do things differently.

How empty is this phrase "Quite frankly, the free-market theoreticians have been shown to be a bunch of charlatans dressing up old-fashioned greed as a social good." How Matt? It is an individual good, and people pursuing their individual good, as long as force and fraud are absent (and they are not in part of this equation) is perfectly moral. This is different from your "sacrifice yourself for the greater good" nonsense, which always seems to involve taking money from everyone else and you and your friends deciding how best to spend it. Your system involves force - none of what has happened recently is about force, it is about speculation.

Then he becomes so incredibly economical with the truth it's barely worth believing anything else he says:

"Remember, we spent a billion dollars of our taxes bailing out the Bank of New Zealand in the early 1990s. The bank made the same mistakes that the American institutions have made. You'll remember that our free-market ideologue, Ruth Richardson, was in charge of our economy at the time, but that didn't stop her from taking a billion dollars of our funds to bail them out"

I remember a bit better than you Matt. The bail out was NZ$380 million, hardly a billion. However, you have long campaigned for higher taxes so what's NZ$600 million between socialists? The bail out was just after the 1990 election, the bank had been left in a parlous state after the 1988 sharemarket crash, and Matt - it was majority state owned. Yes the taxpayer held a majority state - something you undoubtedly approve of. So the taxpayer bailed out a majority taxpayer held bank, it was privatised two years later.

"Our politicians and business leaders need to come clean and admit that free market capitalism doesn't work and never has." Oh I see Matt, so what does? Oh you don't know do you? So how doesn't it work? Are the failings of a majority state owned bank an example of free market capitalism? Are the failings of government created behemoths Fannie Mae and Freddie Mac examples of free market capitalism? Is the extension of the money supply, backed by - nothing - in the 1990s, an example of free market capitalism?

Go back to reading the selected works of Lenin Matt, stop pontificating on something you know nothing about.

Nick Kelly the communist unionist

It has already been reported that the Wellington Tramways Union President is now Nick Kelly - a communist - former candidate for the Marxist-Leninist Workers Party. So the union representing most Go Wellington bus drivers is now led by a nutbar who believes in the destruction of the liberal democratic capitalist state and its replacement with a Marxist-Leninist dictatorship.

Poneke thinks it is an "interesting development", I think it's a great chance for Wellington bus drivers to throw off the shackles of these violence worshipping socialists and negotiate individual contracts.

Labour numbers 64-54 - not much to see here

In the next 10 Labour candidates on the list (63-54), only two are without profiles (remember these are the candidates that would be elected if Labour was around 50% of the vote, a position it was expecting in 2002). Of this lot, Kate Sutton is undoubtedly the most skilled and ambitious, many of the rest are truly mediocre - which says a lot about how serious Labour is about getting her elected. Of those below, maybe two have a tiny chance of picking their electorates up, Julian Blanchard in Rangitata (though the swing to National should rule this out), and Denise MacKenzie in Wairarapa (again the swing to National should rule this out). The list positions are too low, if you expect Labour to not get above 45%.

It's worth noting how many "minority" Labour candidates there are near the bottom of the list. Yes, it shows Labour being diverse without actually risking these people getting elected - how's that for being patronising?

Kate Sutton – Epsom – number 63: A photo, profile and a website. Someone who seems like she wants to win. Her profile isn’t too bad, neither is her website. Now Kate is 27 and Women’s Vice President of the Labour Party, been President of AUSA, and well clearly is ambitious and keen. However she is far too optimistic about government doing good (although she is keen on private sector involvement too). She wants to spend more of your money “We need to address the need for more affordable housing especially in the big cities” well letting the property market deflate will help, as would getting out of the way. She has a blog showing that nobody has donated a cent to her campaign through it. She seems rather bright and ambitious, maybe she’ll finally see how much waste and interference by the state is negative rather than positive.

In 2005 Rodney Hide beat Richard Worth with 3102 votes, and the Labour candidate was a distant third, another 6011 votes behind, so Kate has no chance really. Rodney’s fairly safe. However, even though Labour was second on party vote with 27.2% it was well behind National on 58.5%. She gets credit for the best website so far, but the competition of her lower ranked Labour candidates is poor.

Susan Zhu – list only – number 62: A profile, no photo and no website. “It is essential that we continue to develop, so that our families, business, young people and senior citizens can experience a much improved standard of living and quality of life. Such values enhance Labour's core objectives of social justice, equality and prosperity for all.” Hmm well Labour devalues the efforts of those trying to improve their standards of living. No chance.

Anjum Rahman – list only – number 61: A profile, no photo and no website. “My main motivation goes back to advice in 2004 from a friend. She told me that if I wanted to do the greatest good for the greatest number of people, then I should stand for parliament.” Your friend is wrong Anjum, but don’t worry you have no chance.

Hamish McDouall – Whanganui – number 60: No profile, but a photo and no website. Must be disappointing for a seat that was Labour’s until Chester Borrows defeated Jill Pettis in 2005 by 2402 votes. Labour got 40% of the party vote here in 2005, but is punting up an unknown who can’t be bothered putting a profile up. Chester Borrows looks safe, Labour’s letting Wanganui down, again.

Julian Blanchard – Rangitata – number 59: Photo, profile and a website. Nothing special or too ridiculous in his profile, though the profile has a bad link to his website. He’s 33, his grandfather was former Labour MP Sir Basil Arthur. However, his press releases show enthusiasm for just spending more taxpayers money on everything from subsidizing rural broadband to Kiwirail. Rangitata is a new electorate, combining pieces of Aoraki and Rakaia, both currently National seats. Julian has a very low chance of winning this against National MP Jo Goodhew, who won Aoraki from Labour in 2005.

Denise MacKenzie – Wairarapa – number 58: Profile and photo. “We need an efficient broadband network, well maintained roads, user-friendly public transport, well-resourced schools, and accessible health services. I pledge to work hard to make all these a reality in the Wairarapa electorate.” Nothing exciting there, pretty standard centre left candidate, wants to focus on government spending more money. She stood in 2005, and lost against National’s John Hayes who gained a 2752 majority when it had been held by Georgina Beyer until she chose not to stand again. National gained 45.1% of the party vote against Labour’s 36.1%, so it’s a closer race. However, Denise has only a very low chance to swing against the tide.

Farida Sultana – list only – number 57: Profile, no photo and no website. “I have been active in the community and voluntary sector since 1995 and set up Shakti which has grown into a national, multi-ethnic community organisation that strives towards achieving human rights of immigrant women, and promotes violence-free families.” Nothing wrong with that. “The Labour policies promote inclusiveness, elimination of poverty, sustainable economy, human rights and international peace.” How? Oh dear, slogans aren’t good. “For the past 9 years, Labour has done unparalleled work for and within the diverse ethnic communities as well as wider New Zealand” Yadda, yadda, yadda. Banal and meaningless. No chance.

Michael Wood – list only – number 56: Profile, no photo and no website. “The decisions made by our elected representatives have a real impact on the lives of New Zealanders.” You can tell he’s a genius. “I believe that no person is an island, and that we are all better off when we work together as a society to look after one another.”

Fine Michael, but why do you want to use force? Why is your altruist collectivism a violent one? “I want to see public institutions and services that are the envy of the world, an end to the shame of child poverty in New Zealand, and a thriving economy, the fruits of which are shared justly.” Well Michael, you go and help the kids, but screw your socialism. The fruits of a thriving economy are shared justly by those who taking risks profiting from their success and paying for their failure. I can’t believe Kate Sutton ranks lower than this idiot. No chance.

Don Pryde – Clutha-Southland – number 55: Profile, Photo and no website. Ahh he’s President of the EPMU, so a hard arsed working man no doubt, well as hard working as a unionist might be. “We have had an outstanding government since 1999” well, he’s a believer isn’t he? “the only way for working families to get ahead together is through higher wages, stronger work rights and decent public services like health, education and ACC. And that needs a Labour Government”. They could be more productive, better educated and advance themselves rather than use the state. Bill English commanded 66.7% of the electorate vote in 2005, Labour 23.3%. The party votes were 57.1% for National and 28.7% for Labour. Don the socialist believer has no chance.

Jo Bartley – Tamaki – number 54: Photo, no profile and no website. Allan Peachey took this seat with 58% of the vote in 2005 against Labour’s Leila Boyle with 31.7%. Party vote 53.9% for National and 32.3% for Labour. Clearly Jo Bartley doesn’t think it’s worth fighting for, and I’m sure most Tamaki voters will take that into account when they re-elect Allan Peachey.