Posts by Rich of Observationz
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Well, IANACBE (work it out) but it seems to me that the risk ratio is designed to reflect actual risk, not an opinion on the desirability of certain lending.
However, if the likely inflation of house prices is limited through taxation, then that will make residential mortgages more risky, and should hence make the central banks adjust the weighting accordingly. So the weighting would change towards business lending - although as noted above that's usually secured on real estate anyway.
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How about if the trading banks were forced by legislation to offer a higher ratio of business lending?
My understanding is that no bank will lend more than chump change without taking a security, normally a mortgage on real estate.
I'm unconvinced that we should encourage them to do otherwise. I think having financially robust banks is more important than easy finance for any hairbrained scheme with little prospect of positive cashflow. (People get funding for jetpacks and floating cars, FFS).
There is also the aspect, which I have personally encountered (in the UK) during the first dotcom boom, that if every business is being funded into an unprofitable burnrate driven strategy, it's very hard to actually create and run a business with a real revenue model. (Because the competition are giving investor-funded shit away for free, not to mention attracting investment with competitively delusional business "plans").
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Why is [the slow start] a problem?
Why isn’t it? (serious question)
If the purpose of CGT is to raise revenue, then not getting any revenue might be an issue to a government that wants to cut GST and reduce borrowing.
For the purpose of incentivising behaviour, then it isn’t a problem, of course. And if half the people like this guy who’ve said they’ll go to Australia do so, then it’s worth it for that outcome alone. (I'd note that the UK has a five year continued liability for emigrants as an anti-avoidance measure).
If the government can treat accrued but uncollected CGT as an asset on the national accounts, then it also isn’t a problem, but I would have thought they couldn’t do that. Anyone know?
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That looks like a beer boycott to me, unless I brew my own.
Epic? Tuatara? Stoke?
Also, why can't breweries be proud of where they come from and call their beers Otahuhu Special or South Auckland Bitter?
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My suggestion to avoid a slow start is this: the tax gets charged on an annual basis using the GV of the property and the general property inflator. (For the taxpayer, this would simply mean listing their assets at the start and end of the year - LINZ and IRD could get together and do the rest).
The tax bill can then be accrued against the property until sold, rather than paid in cash (councils sometimes allow rates to be deferred like this). That makes it a tangible asset of the state and hence reduces net debt.
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So, if people feel strongly about looters, how about people looting the EQC and taking money from genuine claims. Apparently overseas experience suggests that 10% of claims might be partly fraudulent - are the people claiming for a crack in their house that was around in 2008 the same ones wanting to lynch imaginary looters?
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I was thinking more of a sort of Augumented Reality feature (AR) that showed you what the stars you could see in the sky were.
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Hard News: Angry and thrilled about Arie, in reply to Sofie Bribiesca,
Google Star map? It's neat - but would be better if you could see the actual sky through the screen - but the camera might be too low ASA/res for that.
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Do that firm also offer Ruby on Rails training?
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Hard News: Angry and thrilled about Arie, in reply to Matthew Poole,
Most handy, thank you. The Nexus One doesn't measure temperature (except inside the battery pack) either. Or neutrino flux.