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Showing posts from May 1, 2020

Would You Loan Your Own Money To These Businesses? If Not Then Why Is Robbo?

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It was bad enough that banks quite rightly did not want to touch the doomed, Grant Robertson now wants taxpayers (and it is not the "government" it is you) to guarantee loans to companies that are in effect - doomed.  Sorry, they are. The loans are available for a year and will be offered to businesses with 50 or fewer full-time equivalent staff. But the loans are only available to businesses which have had their revenue hit by more than 30 per cent due to Covid-19. In a statement, Finance Minister Grant Robertson appeared to be disappointed in banks' lending to help businesses impacted by Covid-19. I am delighted my bank is not lending cash to businesses impacted by Covid-19.  In any instance it was the Reserve Bank that instructed the banks not to lend to anyone "who was not going to make it".  Sit with that for a minute.  The banks declined to even lend under normal conditions and suck up a 20% risk of guarantee, the taxpayer previously t