ANOTHER BUSINESS GIANT BEHAVING BADLY…
It’s funny how some history continues to repeat.
This article outlines trouble that could be ahead for others this year and is pertinent now with a NZ economy struggling under the pressure of a Covid Lockdown, new environment financial burdens for businesses and freight issues to name a few.
It has been predicted that 19,000 NZ families will be affected by having to re-mortgage under rising interest rates, low wages and increased living costs this year.
Alan Crafar faced similar circumstances after he had been courted to borrow more and more money from the banks to expand his growing farming industry. The sort of money no businessman in NZ would have a hope of “making good on given the timeframe” from the shores of a small economy like ours.
Within 18 months, the 2008 economic crisis hit and his loans were called in under a “Panicked” banking environment in preparation for the ensuing recession.
The NZ Government approved an offer from the Chinese of $200m despite it being appealed by Michael Fay and his consortium forcing Alan off 15 of his 16 farms to the new ownership of the Chinese.
I will share with you from a book I’m reading at present, “A History Of Central Banking” (first published in 2014) and their quoted material from R. McGuire “Money made Mysterious” American Mercury Magazine, New York 1958. 98. (American Mercury was founded by H.L. Mencken in 1924)
When the Government of old Egypt fell, 4% off all the people owned all the wealth.
When the Babylonian civilisation toppled, 3% of the people owned all the wealth.
When Old Persia went down to destruction, 2% of the people owned all the wealth.
When Ancient Greece fell in ruins, ½ of 1% of the people owned all the wealth.
Then followed the Dark Ages from which the world did not recover until wealth was no longer concentrated.
Today less than 1% of the people controls 90% of the wealth of these United States.
I didn’t share this with you to incite fear but rather to say this is nothing new and if you find yourself in a compromised position with your Mortgage or finances, and you have called us early for help (at the very first notification from your bank if you get behind in any way) often there are things that can be done (albeit you may find distasteful)and I like to think my experience in these matters has not been in vain.
I didn’t have such an offer but nothing would bring me more pleasure than to help NZers retain their family home.
Go well,
Vinay Deobhakta Litigation Consultant
Founder of McKenzie Friend Professionals Limited