I think for the first time in history I agree with this blog!

"We will know taxpayers are winning when we have a government prepared to ...nationalise profitable businesses (rather than the lemons) for the benefit of the community and leave the capitalists to stew in their own fetid mess".

Disagree with the first suggestion re nationalisation.

Thoroughly agree with the suggestion that no NZ government should ever obligate itself to pay "corporate welfare" (and yes - I'm aware that it was a decision of the Clark government in the initial panic of 2008).

JM has a point. It is all very well waiving the stick at those on DPBs, and insisting they should suffer the consequences of their actions.

The best solution for regulating the financial sector is an economically and financially educated populace. Part of that education is learning from bad experiences. Keep on saving the naive, the misinformed, and the easily duped (any devotees of the cult of Alan Hubbard listening?!), and the general New Zealand public remains like a bunch of children.

When Labour set up the legislation in the first place it was to be followed up early in the next term with regulations around finance companies that would have prevented this massive payout by tax payers. Bill English said in the election campaign that something like that would be prudent. But he and John Key did not do it, preferring to pay out billions to the rich collected from the middle socioeconomic groups and the poor. To boot, they blame Alan Hubbard openly while never a word was uttered about the Hotchins and Watsons of this world. Up to now I have been a National supporter but this is the final staw. I have had an absolute gutsful of politics, politicians and this corrupt government in particular. Bring on 2011.

I tell my chldren about pesonal responsibility in finances, I try to model that, I pay my taxes in good faith, and I apply good management practices in my business.

I watch my parents finding life harder and harder, particularly with power and rates. I learn my cousin (on an invalid benefit) was turned down for a loan to buy replacement glasses). I accept these things. I do what I can to help. However I can not accept the nature and extent of corporate welfare distributed to better off kiwis through the lagesse of John Key's government, especially when many health-related services are being cut, ACC levies are going up, they are doing nothing about the binge-drinking alchohol culture that plagues our nation, and reckless young people drive noisely around my neighbourhood through every Thursday, Friday and Saturday night pissi** me off.

My patience is being tryed by this government and I want to see fair distribution of income, more law and order, and something done about the escalation of prices for utilities needed by the elderly and sick, before I give them two ticks again. John Key, your government needs to re-find its principles and retrieve some lost integrity.

Picked it :)

John seems to think that it is OK to leave finaince companies to collapse and drag us all down.

It is typical of his myopic viewpoint that he doesn't think of what SCF's failure would mean for the country - and for the less well paid that he claims to champion.

As for the cost to the taxpayer - well what's the problem? Most taxes are paid by "the wealthy" - anyone on welfare or WFF won't be contributing to this - but I will be because I pay my taxes.

John is at his dissembling worst when he states that scavengers will pick out the plumbs - the strong implication being that htere wil lbe a fire sale and bargains to be had. Yes the perfoming loans will be sold...but they will be sold at reasonable rates - for what they are worth!

And that's a lot better than letting all those farms be bankrupted and sold off in mortgagee sales as apparently John would like!

There you go John - it's been easily explained in simple terms.

John's hypocrisy is highlighted by this case - it is OK to bail out the dead beats, unemployable and career welfare "employees", but it is not OK to make sure that the productive base that we all rely upon is maintained.

God save us from socialists and bankruptcy!

@ Minto

"when we have a government prepared to do the opposite - nationalise profitable businesses (rather than the lemons) for the benefit of the community"

If we want to incite a meltdown of New Zealand's economy, all the government has to do is begin the involuntary nationalisation of private businesses.

Seriously, who the hell is going to invest in, and work towards, a successful business if their hard work is going to be stolen away by the government in the middle of the night?

My understandng in 2008 was that the regulatory body for companies of this sort would be well in place the next year (but government changed). I'm a free-enterprise-minded sort of person but we have way too much moved the balance in society to outright partiality to the rich.

I'd accept that were I not seeing how hard it is for people below me economically to pay their basics of life. And I'm scared that if the National guys go on much longer as they are that will be me too by next year.

We demonise those on low wages or who are beneficiaries. OK. But at the same time we move Heaven and Earth to favour those much better off.

The rich have worked hard and deserved it but the poor deserve no favours! To me this is not fair.

Good reach John Minto. Seems fair to all.

Over the last few months - but particularly this week - I've come to a tipping point. I no longer feel the government, as evidenced in the actions of Mr English and Treasury, reflect what I previously thought were more or less essentially shared values.

This is certainly a sad day. Bailing out "investors" and speculators is wrong. It is like being able to bet on the horses and get your money back if the bet does not work in your favour.

Those that took the risk to invest with SCF should have done their homework. Anyone that puts down $50k odd without due diligence is being foolish.

At least they are, for the most part, honest folk that have lost their life savings and are getting some of that back. In the grand scheme of things, these the money being paid out here is small when compared to what these people have put into the economy.