Saturday, February 28, 2009

But New Zealand won't be affected

Royal Bank of Scotland is leaving New Zealand after being nationalised.
The Scottish bank's loss of 24.1b was reported as comprising 7.8b of trading losses and 16.8b of writedowns caused by paying too much for acquisitions, notably ABN Amro.

NZX chief executive Mark Weldon, chairing the jobs summit in Auckland, said the bank's withdrawal from New Zealand was a stark reminder that New Zealand could no longer rely on stimulus and funding from overseas.

"They are now largely owned by the Queen and are less willing to provide credit to Tauranga instead of Bristol it's that simple."

The fact that New Zealand investment markets had one less firm operating showed how vulnerable the country was to the global downturn, he said.
But, but, but, but, but we won't be affected by the banking crisis. A certain Michael Cullen told us so didn't he?



More shocking for the British is the state of their public debt.
The boss of the Audit Commission who is meant to be apolitical says it has reached 'armageddon' levels.
Huge spending cuts are thus necessary.
High and rising government spending of recent years in both Britain and New Zealand looks set to leave one almighty mess, especially when both countries are at their wekaest to deal with it.


Oh and how mnay finance houses closed under Cullen's watch?