So Gareth Morgan told Paul Holmes on Newstalk ZB this morning.
Then, just when I thought financial English couldn’t get any plainer, Gareth said this:
“We’re toying with a depression.” Ouch.
And this: “New Zealand is extremely exposed.” Double ouch.
Even Gareth can’t get much more black and white than that. And this morning, his mood was all black.
Clearly the American moms and dads are leaning on their congressmen to exact revenge on the fat cats.
Yet by vetoing the $700 billion bailout of the finance sector, guess who they’re really punishing?
They resent having to pay $5000 each for the bailout. Yet they’ll end up paying $50,000 or $500,000 when their insurance companies fall over.
As Iris’s nearly did the other day.
She has a policy with the Taiwanese arm of AIG – the biggest insurance company on the planet.
She’s had it for 20 years. It falls due next year.
As Gareth said, you’ve got to save the system before you can fix it.
I do like Gareth Morgan’s plain English. But this morning’s message was chilling.
Also Richard Long’s in the Dominion Post, about how Kiwis seem blissfully aware of the trouble that’s heading their way.
Seems our financial literacy hasn’t improved much since the days of Muldoon.
Fingers crossed the Yanks get it right second time.