Q: If you own a house and it decreases in value by $50,000, would you need a loan to cover the loss?

Think carefuly mike.

Phil – anyone paying attention knew this spanking was coming. I’ve been watching it unfold for a couple of years. For just a few examples, see predictions of:

Housing collapse, August 2006
http://www.informationclearinghouse.info/article16164.htm

Impending Global Financial Crisis, July 2007
http://www.informationclearinghouse.info/article18843.htm

Widespread crash, August 2007
http://www.informationclearinghouse.info/article16104.htm

America’s banking system crash, January 2008
http://www.informationclearinghouse.info/article19249.htm

It’s going to get worse, January 2008:
http://www.informationclearinghouse.info/article19194.htm

So what you are saying is that there is less money this year than previous yeas but as its election year Labour can still offer tax cuts for the first time. Poor Old Cullen hows he going to sell this one?

Exactly! Treasury has a history of naff forecasts. So Cullen plays it safe by running a cautious surplus to allow for errors and unforeseen contingencies.

And for this he has copped nothing but incredible grief from most of the media (and truly hysterical ranting from the Kiwiblog Right) about “tax cuts now!”. Sigh. What is a Minister of Finance to do?

You puzzle me HS. You’ve been around for a wee while, and I had you down as a simple bile spitting troll – eg:

please as your esteemed Deputy Leader (Gollum) stated quite rightly he is a rich prick

Is Judith still alive I thought she died a couple of years ago

…and so on. But recently there is a new found desire to raise standards and encourage reasoned debate? Good For You I say, I’ll support those goals 100%, but I’m just wondering why the change of heart on your part?

“National is appalled to learn that funds have been openly invested in share markets, as we had not noticed this before. We have also just discovered that, according to experts talking on the telly before the sports news, these markets can go down as well as up. It is a disgrace that Michael Cullen has alllowed markets to fluctuate in this way, and we demand immediate intervention to control the global marketplace. Under National, funds for the long-term benefit of New Zealanders will be invested under the mattress.”

I fell for HigherStandards bait and switch of topic, my comment is in moderation.

This is a similar story to the crab pot story, Key should be on solid ground here. The Nats have had the policy retreat and its not like the AIA deal was a suprise (the govt reaction was though), he should have been all over cullen on this issue but has turned the spot light on himself. He does seem to get grumpy when pushed. Note to JK, just say ‘I don’t have the facts in front of me’….

But anyway, the actual cashflow (which is far far more important for determining if money for tax cuts is available) is still running at $3.1 bln.

I don’t think it’s an indictment of Treasury, nor is it something that will affect day-to-day spending.

I think it will instead show why taking a prudent line with government spending is important.

It also brings out ill-informed comments from people such as mike, who clearly have no idea how this works. It’s not like the government has a savings account that Cullen has blown on shoes and candy.

I think you’re reaching a bit.

There’s a difference between a cautious surplus and a gigantic warchest for election year.

My basic question however still stands why can’t we have persons of a higher calibre or hold the incumbents more accountable in the public service.

My question about Judith still stands I haven’t seen or heard anything from hear for an age.

And I sure even ancient would agree that he gorges on his crapulence at times as do we all.

Read the article in the Herald:

http://www.nzherald.co.nz/section/1/story.cfm?c_id=1&objectid=10496497

Have you not noticed that global markets have not had a good quater! An the Cullen Fund ROI is part of the surplus! So projected earnings have changed, bet your investment landscape has changed also?

I think we need to ask how those in charge of forecasting for the respective funds managed to be so far out – 20% down on forecast. I don’t think this kind of forecasting error can provide any confidence to whomever is in government.