At the same time, bloggers often depend on “real” reporters to dig out and even explain news that we wouldn’t otherwise know about. The following article from the Herald is a good example.
It’s these “bargain hunting” speculators that the Tax Justice campaign is targeting with our call to “Tax Financial Speculation”.
Thanks to Peter, for forwarding this. Here are his comments:
$1.3 billion of government money paid out today to the speculators for Hubbard’s worthless South Canterbury Finance shares and bonds. Break out the $900 bottles of bubbly! Great news for the parasites, too bad for everybody else who happens to need a pay rise such as those pesky radiographers and teachers.
This will also be paid for by all those unemployed people having their entitlements chiseled away and disabled people being hammered by the ACC and WINZ. Maier’s face says it all...
Speculators reap fat reward as finance firm fails
from NZ Herald
Bargain hunters who bet against South Canterbury Finance in the NZX debt market will be rubbing their hands with glee today with the guarantee covering the failed financier’s listed bonds plus interest.
The Timaru-based finance company called in the receivers today, triggering the government’s retail deposit guarantee which will pay out the face value for the firm’s debenture and bond holders.
Prices for the company’s listed bond maturing in 2012, after the extended guarantee, fell to a deep discount earlier this year, with the yield reaching 40 per cent in March.
That meant audacious punters could buy them cheap and get paid out in full if South Canterbury failed.
“There will be a lot of money made in the listed bonds with prices up to 20, 30 and 40 per cent, which was all paid today,” chief executive Sandy Maier said in a conference call.
“A lot of bets in the casino paid off big time today.”
The yield had abated in recent weeks, and was last at 24 per cent before trading in the security was suspended.
The government will have to pay-out $125 million on the bonds.
Maier said the guarantee, which many commentators claim distorts the market, gave him confidence to accept money from “widows and children” as he sought to save the company from collapse.
The failure of the finance sector has seen a number of low-ball offers for debenture stock, and prompted the Securities Commission to warn investors to make an informed decision before accepting bids significantly below face value.