November 19, 2012 § Leave a comment
A very interesting year in a most recent…
string of years was the year 2007.
That is to say, 2007 was interesting both here. And there.
Insofar as I am concerned to relate here two facets of human behavior: creation of seemingly worldwide denial industry, and new thinking on the nature of multi-nations’ recession and what to do about it. Whereas one facet would amass superiority in numbers to thwart climate science’s clear premium in tackling mankind’s fate, the other facet both knew and resolved a different path. Not for it any number of knowalls: knowing alone was sufficient.
The latter on-topic, so to say, 2007 was simultaneously significant as to content, circumstance and consequence. Here and there.
2007 was the year in which a cuckoo came to shine and drop unto the black robin the very nature of multi-nations’ recession along with – so constructively – what to do about it. Locally.
Why here? Well, one very good reason was the excellent economic stewardship of the government of the time. So good was this, and in relevance the to-do part, that implementation might be studied with a view to improvement, upscaling and general betterment.
Core of this ‘drop’ was a double sentence paragraph, in which the Recession was characterized by TWO WORDS. Such was their importance that a nation’s financial competance was seen to hang upon their use without too many others recognising the prescription. As explained.
Late 2007 a new government would herein occupy benches. Did they have the words? It was possible – as already stated of its predecessor’s – wisdom was passed on. Then again if they alone would claim the new thinking their language would in some part reveal this. Well, actually, with but one of those words usage conveyed enough confidence to self-suggest that yes they did. Have the knowledge. The two sentences. Our shiner’s entirety.
One word, two sentences: game, set, but five years on and no sign of match the justifiable questions arise: who knew what and when did they know it?
So.. here we are… little changed aka old reality… and strongest reason to demand that any actual or wouldbe or wannabe stewardship supply both words to characterize this specific recession. And its fix. [ Clue: long though this may take. Definitely for longhaulers, being how aetiology was sometimes crappy yet always short, sharp, snappy..]
ps: prudent financial management ought not be ascribed under “Greed” in any serious debate – whether series or solo – upon public media. Unless the benchmark by which another reality is related. To do so IMHO is to turn oneself into the proverbial canary. Whose fate is self-something or other. Usually dark and slavish at that.
Interest-rate swaps, by contrast, are not prudent. To either their offerors or takers. They are in practice risk rewarders. Punishing those too readily grasping the ‘g’orn be a devil!’ challice, or trustees of the too-trusting tree, or even those whose hubris/pride hath not thus far reached its limits. Rewarding those willing, able and capable of profiting therefrom.
General rule: if you don’t get it don’t do it.
Seems to me from a listen to an interview this morning on radionz that a ‘wave’ of folks imported a ‘let’s do the bizness’ among short term or fixed interest loans with personal marketing like it’s smart to hedge agin interest rate rises. Over-emphatic ‘rises’ frames distracted mindsets, result: like house prices—they always go up heh!
Forward thought: I would think in the general body policy interest to know, actually know, what loan funds are a bank’s (agent or financial operator’s etc) and what loan funds are investors’ therein. Written readably, reliably, into contracts. By such simplicity parties to one would know for whom the greater risk/reward equation has been agreed. Just an idea… guys 🙂