One of the reasons Labour are goners

Cullen's follyI think that Adolf and myself alone in the blogsohere predicted our very own sub-prime issue would bite the government on the ass. It has come to be with far more hurt on the horizon.

The SST starts at last to look at the big picture. Bear in mind that when you read the article that Cullen said that the US sub-prime crisis wouldn’t affect us.

– 21 finance companies failed, more to come

-$273 million paid back

– $1.679 billion missing and unlikely to be recovered

As the enormity of the situation continues to be revealed we are likely to see more finance companies go to the wall. Credit is certianly tighter now and marginal lending is out completely.

Capital + Merchant looks like it has seriously screwed its investors by breaching insurance conditions making it extremely unlikely that Lloyds of London will pay out on policies that the receivers previously thought would enable them to recover funds.

Most if not all of the Directors of these companies have on the evidence public at present seem to have egregiously breached their fiduciary responsibility to the companies and in certainty should be prosecuted. Most won’t however. Some that certainly should be looked at are Bryers & co from Bluechip, the Directors of VTL and Nathans Finance, Capital + Merchant, Bridgecorp and Five Star.

All of this went on while Cullen fiddled and claimed we wouldn’t be affected by the global credit squeeze resulting from the US sub-prime crisis.

It is the middle income Mums & Dads that have copped this, mostly in Blue Chip but also spread across the rest of them with $50k there and $20k here, that is gone, their little nest egg and guess who they blame?