Thousands of Victorians have their cash frozen after collapse of Banksia Financial Gr

[Weasil007]

http://www.couriermail.com.au/news/...-financial-group/story-e6freon6-1226503478426

Should the gov step in and guarantee these funds?
This is going to be a massive kick in the guts to the investors..

 

[hobo-jo]

Should the gov step in and guarantee these funds?

Socialise the losses? No way IMO.

Unfortunate for those invested, but did people not learn the risk of these mortgage backed products from those which failed in the GFC?

 

[Angel]

What he said!

 

[Fifth]

Thirded.

<insertcharacters>

 

[wategos]

Strange coincidence, I thought the story was about Bankia, the Spanish bad bank.

 

[boomtown]

Anyone that puts all of their cash into something that isn't a bank is an idiot.

 

[Aaron_C]

They are a major rural lender so things must be really bad in the bush.

 

[Indifference]

They are a major rural lender so things must be really bad in the bush.

Not necessarily....they invest a lot of super funds. Could be as simple as poor investment risk management.... Ie. lack of credible hedging etc...

Sad story, but I am hardly surprised. The financial markets are cancerous due to poor regulatory oversight, risky investment structures and ridiculous crap like derivatives. Just look at the MF Global fiasco... 2 billion in client funds went up in smoke and no one held to account. It just "disappeared" for all intensive purposes.

I feel sorry for the people that will loose their life savings through "redistribution" to the wealthy.... because their life's work did NOT just disappear.... it simply got funneled into someone else's pockets. Oh, and this is entirely legal.... *sigh* ....

 

[wobbycarly]

Smells like Pyramid - not good...

 

[geoffw]

A lot of people around my home town were affected. A friend of my dad had $16k. By no means his best egg but it still will hurt.

One of the local area churches had all their money there.

 

[Weasil007]

Receivers have been busy this week with Banksia, Southern Cross Constructions and Provident Capital, now we have Retail Adventures – owner of Go-Lo, Sam’s Warehouse, Chickenfeed and Crazy Clark’s calling in the receivers. Over over $1b worth of business now in the hands of the receivers in just one week

http://www.theaustralian.com.au/bus...ameron-not-happy/story-e6frg8zx-1226504274349

 

[Aaron Sice]

smells like a take down to me.

the whole solyzn / mf global link all over again.

you dont buy a company that dishing out cash like a rapper in a music clip in the current environs. looks like the CCC and ASIC were asleep at the wheel with this one.

 

[BayView]

Should the gov step in and guarantee these funds?
This is going to be a massive kick in the guts to the investors..

People put their money into private Banks because they want to earn interest on it.

It's their investment choice.

They could put it under their mattress if they wanted to, but they probably deem it not to be safe there, so they ask the Bank to look after it.

A Bank is a business and can fail.

I put my money into property and my business. It's my investment choice.

Will the Gubb bail me out if it all goes pear-shaped? NO.

It'll be interesting to see what all the nannas do now; could be a massive run on all the Banks.

 

[hobo-jo]

I put my money into property...
Will the Gubb bail me out if it all goes pear-shaped? NO.

Well maybe not personally, but the government has been trying to bail out the property market for years (for example introducing the first home buyer boost to bring forward demand and prevent a collapse in prices).

 

[willair]

Receivers have been busy this week with Banksia, Southern Cross Constructions and Provident Capital, now we have Retail Adventures – owner of Go-Lo, Sam’s Warehouse, Chickenfeed and Crazy Clark’s calling in the receivers. Over over $1b worth of business now in the hands of the receivers in just one week

http://www.theaustralian.com.au/bus...ameron-not-happy/story-e6frg8zx-1226504274349

Just a question from the sidelines,what do you invest in Weasil because you seems to have your eyes open for all the small warning signs,Australia was the same at about 1991,1997,2008,and all we need now is another serious political crisis...

 

[Weasil007]

Just a question from the sidelines,what do you invest in Weasil because you seems to have your eyes open for all the small warning signs,Australia was the same at about 1991,1997,2008,and all we need now is another serious political crisis...

As per Bayview, my business is number 1. I will never get a better return on any investment beyond my own business. It pays my wage, my wife's wage, supports my family, provides fully paid vehicles (fuel, rego insurance, service etc), allows me to supplement our super (a real free kick) and gives me flexibility to work when I want. Beyond that I have our business premises (via my super, no CGT if sold when in pension mode) and invest with ARGO:

http://www.argoinvestments.com.au/about.php?id=76

Always looking for further opportunities and am constantly mindful of the state of our economy, and any future direction it may take as this WILL impact on my number 1 investment. I do not own rose coloured glasses

 

[matto_]

High reward comes with high risk. I think that is the old adage.

 

[Aaron_C]

As per Bayview, my business is number 1. I will never get a better return on any investment beyond my own business. It pays my wage, my wife's wage, supports my family, provides fully paid vehicles (fuel, rego insurance, service etc), allows me to supplement our super (a real free kick) and gives me flexibility to work when I want. Beyond that I have our business premises (via my super, no CGT if sold when in pension mode) and invest with ARGO:

For self-employed of course your own business is your most important investment, that is self evident. Otherwise you don't eat.

 

[willair]

As per Bayview, my business is number 1. I will never get a better return on any investment beyond my own business. It pays my wage, my wife's wage, supports my family, provides fully paid vehicles (fuel, rego insurance, service etc), allows me to supplement our super (a real free kick) and gives me flexibility to work when I want. Beyond that I have our business premises (via my super, no CGT if sold when in pension mode) and invest with ARGO:

http://www.argoinvestments.com.au/about.php?id=76

Always looking for further opportunities and am constantly mindful of the state of our economy, and any future direction it may take as this WILL impact on my number 1 investment. I do not own rose coloured glasses

Just like any business,the ATO picks up the costs and you carry the risks..