The Dim-Post

May 28, 2009

Surprise surprise

Filed under: finance,Politics — danylmc @ 4:59 pm

S & P have carefully examined the budget and decided not to downgrade our credit rating. One suspects you could have just shouted the S & P analysts to a few lagers, a lap dance and a curry and they’d have reached the same conclusion.

Also, the budget isn’t all doom and spending cuts – Treasury are getting an extra $60 million dollars next year! I guess it’s important not to degrade the government’s access to economic forecasts that are never accurate and insane policy recommendations that nobody listens to.


  1. I guess it’s important not to degrade the government’s access to economic forecasts that are never accurate and insane policy recommendations that nobody listens to

    I’ve asked this before – isn’t determining the effect of the budget on the Government’s ability to access credit one of Treasury’s job? I guess this Government doesn’t want to listen to them either.

    Comment by George D — May 28, 2009 @ 5:07 pm

  2. “”The main risk to the ratings would be a significant weakening in the credit quality of New Zealand’s banking sector, which is largely owned by the Australian banks,” Curry said.”

    that’s reassuring

    “However, we continue to expect the banks’ capitalisation to remain adequately able to absorb the likely increase in credit losses given the weak economic environment and, funding and capital support from the parent banks, if required.”

    perhaps there’s some more gold mines in Kalgoorlie about to open.

    Comment by Neil — May 28, 2009 @ 5:45 pm

  3. It appears S&P haven’t learned from the global financial crisis – to blindly parrot words that National must have written for them characterising National as a government that was fiscally conservative in opposition is both irrelevant to their assessment of a current credit rating as well as being just bizarre. They and other rating agencies got into trouble by telling the people that were paying them the words the clients wanted to hear.

    Comment by ALS — May 28, 2009 @ 7:50 pm

  4. Or, as Peter Metcalf mentioned on Kiwiblog, the Govt told S&P that it has an exceptionally good credit line from Westpac..


    Comment by JC — May 28, 2009 @ 9:02 pm

  5. what National lack is a vision. If they had a vision then we would all flock round and appreciate the vision just like people used to do with pubescent Catholic children before we all got to skeptical.

    But since the CTU can only muster such luke warm criticism things must indeed be looking bleak. I wonder if when the pain really sets in there might not be quite a sizeable angry protest vote that’s unlikely to be going Labour’s way.

    Perhaps Winston Peters is quietly having his own vision at the moment.

    Comment by Neil — May 29, 2009 @ 12:09 am

  6. couldn’t find the children scene but there is this seems appropriate –

    Comment by Neil — May 29, 2009 @ 12:24 am

  7. Someone told me last night that Treasury have a big post-budget party today where they dress up in womens clothes and perform skits.

    Comment by danylmc — May 29, 2009 @ 7:33 am

  8. it’s only women’s undergarments. and the skits all involve whips and suspension devices.

    Comment by Che Tibby — May 29, 2009 @ 9:26 am

  9. The rating was up-graded wasn’t it, from Negative outlook to stable outlook?

    Must have added an ice-cream to the lapdance.

    Comment by Dave Strings — May 29, 2009 @ 2:35 pm

  10. “when the pain really sets in”
    Not sure what that pain is, unless you are talking about the economy sliding further than expected, say, so many more loss of jobs?

    Comment by Clunking Fist — May 29, 2009 @ 2:41 pm

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