2009 - what a year...what's happened?

[donna]

As we are in the final straight for 2009 - I thought I'd start a discussion on what happened in 2009.

I'll start it off with what I remember....

• Richmastery - no longer in business
• Mark Bryers (Bluechip) goes bankrupt
• Madoff gets 150 years Jail term

I am sure there's lots more -

Cheers,

Donna

[Munga]

To add to your list Donna:

• 4 day working week/9 day working fortnight

On a personal level, it has been a dreadful year for our family with one thing and another, and some of our friends too. Still, what doesn't kill you only makes you stronger :-)

[pooky]

Interest rates stayed low, house sales were quiet but steady, Unemployment climbed slowly, the nationwide bike track thing started being built in the waikato, Cashflow was king, IRD wasn't.

[mortgage broker]

fixed rate terms flipped inside out, floating became lower than the fixed rates and the longer terms become a lot higher than the shorter terms.

[donna]

• new NZ property investment training business - PropertyTutors
• promotion of Tax Liens in USA
• Lots of Property Developers go bankrupt
• fixed rate property management fees

geez we can create quite a list...and I'll create it as a summary in a couple of weeks once we've all had plenty of time to contribute.

Cheers,

Donna

[muppet]

Gold through US$1130.00 per oz.

[Asterix]

Non Bank Lenders (sub prime) quietly ripped off NZer's by millions of dollars using creative wording in break fee clauses, and no one seemed to notice.

[donna]

Non Bank Lenders (sub prime) quietly ripped off NZer's by millions of dollars using creative wording in break fee clauses, and no one seemed to notice.

Yeah wow what a good one Asterix!

Cheers,

Donna

[Glenn]

One year of a National Govt in power after a decade of university lecturers and other mis fits of society running the country.

[dandan]

Non Bank Lenders (sub prime) quietly ripped off NZer's by millions of dollars using creative wording in break fee clauses, and no one seemed to notice.

That one's movie material.

[eri]

maybe the shoe would fit better if it was on the other foot

imagine you had $100k to put into a term deposit and a range of choices from 1 [email protected]% to [email protected]%

not needing the money for 5 years you decide to go for the extra 2% and lock it way for 5yr rather than 1yr

1 yr later

shock horror! - interest rates have risen 2%, you now can get [email protected]% and [email protected]%, you didn't know that would happen, fair's fair, you should be able to go back and renegotiate your term dep

so you trot back into the bank and say thank you very much for the 1 [email protected]% but my circumstances have changed so i would like to cancel my term deposit 4yr early, pay a few pennies as penalty and reinvest it for [email protected]%

the bank says, "well, we are the bank that never says no, so sure, why not, break the contract we don't care

and the 5 mortgage holders who borrowed that same $100k off the bank for IP get letters in the mail saying, sorry the depositor that was funding your loan has told us they would like to break the contract early so can have a little more money, we've said yes, which means your monthly repayments have gone up, not to worry if you can't afford an increase, you can also continue to make the same payments, you'll just have to make more of them

there you go, everyone's happy!

[Perry]

One year of a National Govt in power after a decade of university lecturers and other mis fits of society running the country.

Does that take us out of the frying
pan and into the fire? They may be
colour-coded differently, but as far
as I can see, we've just swapped one
lot of mis-twits for another.

[Perry]

Maybe we could add a few guesses at what
idiocy will besiege PIs and PMs in 2010? In
the sense of being a semi-natural follow-on
from the legend for 2009.

After watching a pedestrian nearly walk under
a car while using a cellphone, can we expect
a total ban on cell phone use except between
consenting adults in the privacy of their own home?

[speights boy]

maybe the shoe would fit better if it was on the other foot

imagine you had $100k to put into a term deposit and a range of choices from 1 [email protected]% to [email protected]%

not needing the money for 5 years you decide to go for the extra 2% and lock it way for 5yr rather than 1yr

1 yr later

shock horror! - interest rates have risen 2%, you now can get [email protected]% and [email protected]%, you didn't know that would happen, fair's fair, you should be able to go back and renegotiate your term dep

so you trot back into the bank and say thank you very much for the 1 [email protected]% but my circumstances have changed so i would like to cancel my term deposit 4yr early, pay a few pennies as penalty and reinvest it for [email protected]%

the bank says, "well, we are the bank that never says no, so sure, why not, break the contract we don't care

and the 5 mortgage holders who borrowed that same $100k off the bank for IP get letters in the mail saying, sorry the depositor that was funding your loan has told us they would like to break the contract early so can have a little more money, we've said yes, which means your monthly repayments have gone up, not to worry if you can't afford an increase, you can also continue to make the same payments, you'll just have to make more of them

there you go, everyone's happy!

Yes, eri

that is exactly what a large number of those with term deposits did from early Nov 08 for a period of about 3 weeks.
Took their money out and put it with Finance companies for 18 mnths covered by the DGS and are earning over 10%. Government guaranteed.

Some bank's penalties for breaking a TD are quite reasonable.

I guess using 5 mortgage holders in your example, you are using a mortgage of 180k each to get the approx 900k of lending for a 100k deposit?
Would that be about right?

cheers
SB

[Hec]

hang on a minute...
wasnt just the non bank lenders. think about it.

Another one. The government gaurantees to cover all deposits.
Which means they know the majors do not have the readies to back up the deposits.
Which means if it came to the crunch the Gov would bail the majors using cash they dont have. In other words they would print more $ and pump it in to the system and your truely would be paying for that (tax, yes that is what it is) in the form of inflation.
This is fact.

Hec