Monday, October 31, 2011

Agh but Would They Know ?

House = asset. Mortgage = Liability.

Machine = asset, Unprovided maintenance = Liability

Mortgage held by Bank = Asset, Mortgage owed to Bank = Liability.

The Media are continuing with the theory that a majority of New Zealand voters oppose "Selling State Owned Assets".

Lie, it is not the National Party Policy to sell the freekin assets, it is proposed to sell a minority share in some assets till NZ inc owns at a minimum, 51%.

If we continue with the ownership of all infrastructure in the State where will the burgeoning funds of "the Cullen fund, Kiwi saver, et al invest their money, Oh thats right, they will invest in other country's infrastructure. Exporting our funds to grow somewhere off shore?

How many in the Labour Party 2011 have any experience in owning, funding, managing and staffing a functioning business.

Now the serious stuff, just how many of the 60 percent (varies) who oppose sale of state assets, not forgetting it is not SALE but A PARTIAL SALE, have a modicum of knowledge of the real financial issues involved.

If continued sale of any part or all of any infrastructure assets still within the governments hands is so bad why are the socialists not promoting the repurchase of the remainder of Air NZ, Contact Energy, Telecom, the Post Office savings Bank, and all the other assets sold by previous governments where the Hon Phil Goff was a member of the executive .
Sheesh we know how much over the odds The History Teacher paid for the rubbish bits of Kiwi Rail.

I seriously question if anywhere near 50% of the voters in NZ have any real idea what the Partial sale of some Government owned assets involves as regards the real financial management aspects, leaving that figure opposed as not even an excuse for a "Fairy Tale".
One only has to listen to the uninformed lamenting the loss of "ALL" the Income when it will only be the possible 49% of the dividends anyway.

Clear evidence of the ignorance.

7 comments: said...

I suspect that Kiwisaver funds will be guided to stay in NZ, ie stopped from investing overseas, so a massive investment bubble will be created with dire consequences for all when it bursts

Tulips anyone

Psycho Milt said...

What would they know? Well, they know perfectly well that if you sell part of an asset because you can't pay your bills and yet you do nothing about your inability to pay your bills, the rest of the asset will soon go as well. In that sense, they know the govt all too well.

gravedodger said...

Thats a valid point Milt but why are the anti brigade not railing about the mixed ownership model already in place with Air NZ, something to do with who did that deal perchance.

Nick said...

It's worse than you think GD.

The assets are owned by the company. The company is owned by the government. The government is not selling the assets of the company, it is selling shares in the company. The assets of the companies remain untouched.

Anonymous said...

Unfortunately the "General" voting public haven't a clue as to real business. That's why they are Labour & Green MP's, most of whom have never had a real job ever - look at the Labour List persons. A sad reflection on the education of our children - now voting adults.
I cannot confirm or deny that I have I have heard the general voting public described as "pig shit ignorant"

Anonymous said...

its not the sale or partial sale that is the problem. The problem is the spending program. They are trading assets which which earn income for liabilities, i.e. something that requires ongoing money to maintain.

Anonymous said...

PM @ 12.20 is right and GD is comparing apples and oranges for effect. Air New Zealand is fundamentally different to power companies but it may still be a sensible investment if it returns a suitable dividend.