It will be interesting to see what the fallout is from the collapse of Mascot Finance. This is the first test for the government’s retail deposit guarantee scheme.
It was also interesting listening to the Mike Hoskins breakfast on NewsTalkZB this morning.
Bruce Sheppard, of the NZ Shareholders Association, was saying that it was high time that Kiwi’s learnt the risk vs return equation and that the possibility of high returns comes with a cost, with the cost being potential loss of capital/investments. This is something we’ve been very vocal about since launch in 2006, particularly when we started to see large finance companies fall over.
And then there were the very statements from commentators and journalists, suggesting that the government may have to review the t’s & c’s of the deposit guarantee scheme based upon the Mascot situation.
More to come no doubt.