The role of parents in financial education

[Ocean1]

Yup, bummer if it's a fizzer and whilst you are responsible for what you invest in, it's usually someone else's decisions that mean that you "win" or "lose". Tis a shame that that fallout fucks people's lives over. Seems silly to me that we would structure a society in such a way that people can lose everything they have worked hard for because a group of bankers around the globe plays fast and loose with some digits and pieces of paper. How evolved .

Again with the bankers.

Wee tip for you:

Neither a borrower nor a lender be;
For loan oft loses both itself and friend,
And borrowing dulls the edge of husbandry.
This above all: to thine own self be true,
And it must follow, as the night the day,
Thou canst not then be false to any man.

[Winston001]

Ah Hamlet-No-Mates, a worried dismal prince in a gloomy country. Not surprised he couldn't get a loan.


However lets be fair and acknowledge Mashie makes a good point when he questions a financial system which allowed Hanover, SCF, Strategic, Dominion, Provincial Finance etc to take money from trusting people and then evaporate it. In my experience these were not greedy people, they went to financial advisors who were supposed experts and followed their advice.

The risk premium offered by the finance companies before the collapse was only 2% above the banks which implied they were low risk. I recall Gareth Morgan saying at the time that the finance company rates were far too low but nobody listened.

Where it went wrong is some (only some) of these companies lent their depositors money to directors/shareholders who dabbled in property development etc. High risk stuff but it was hidden and not possible to know about.

SFC and Dominion were less blameworthy but got caught in the total collapse.

The central issue is there was dishonesty which should not have been possible if NZ had tough enough financial regulations. I saw all of this happen before (finance company collapse) in 1987 and naively thought the new rules protected investors. Hah! Live and learn.

[Ocean1]

However lets be fair and acknowledge Mashie makes a good point when he questions a financial system which allowed Hanover, SCF, Strategic, Dominion, Provincial Finance etc to take money from trusting people and then evaporate it. In my experience these were not greedy people, they went to financial advisors who were supposed experts and followed their advice.

Shysters have found ways around regulatory measures for all of recorded history. Accept the fact that any time you give someone else control of your money that there's a chance you'll lose it, and then decide.

As for mushmate; the bard's advice stands, if you don't like investment houses or banks then don't deal with them. Problem solved. Raving on about the inequities of "the financial system" as if the tiny percentage of shysters in the industry represent every monetary transaction is tiresome drivel.