The foxes aren’t in the hen house… for now.

Following on, I do believe that good people leading good businesses with courage to take risk selflessly present the best invest-able propositions available. The trick is sorting out the good guys from the bad guys. That requires judgement.
There are bad guys who are dumb and break the law, no solace for dumb investors. There are smart bad guys who don’t break the law and work “da system” even less solace for investors.
The mistake investors make, is believing that the system will protect them from the real bad guys – it won’t and can never do so. The law is a structure and structures can be worked within by dishonest people and the outcome remains the same, investors lose.
So what is the answer? Smarter investors. This is why investor literacy is fundamentally important. While there are chickens to be eaten there will be foxes to do it.
Our finance company debacle started in 2007 and reached its peak of destruction in 2008. In reality the game was over by 2006 and the backers of these companies knew it, if they were smart, or should have known it. By 2006 the music was so loud and the chairs available for when the music stopped were so few that no one had the courage to turn off the music.
While a “justice” of sorts has occurred for some in the intervening period the worst remain free but out of the chicken house for the moment. The problem however is memories are short and the foxes will return and be dressed up as very fancy cockerels. We must never forget who these people are and must never fall for their story telling again.
Never forget that leopards don’t change their spots and only follow those who walk the walk and avoid those who talk the talk. The sexy spin usually lack substance.
You know how jingles get remembered, “Broke me denture broke me denture, what shall I do…”, those of us old enough (I am not) will still remember the phone number … The BNZ Kiwi saver launch campaign “I’m gonna work till I die…” they just get in your head don’t they, they really do help you remember, so I thought I would rewrite the lyrics to “Tie me Kangaroo down sport” for you.
New title… “Tie the little guys down sport”

There’s a smooth Kiwi financier, lying sighing
And he gets himself up on his cash pile
And he turns to his mates, who are all gathered ’round him
And he says…
Watch the wantabee’s feed, mate
Watch the wantabee’s feed
They’re a gullible breed, mate
So watch these wantabees feed
Tie the little guys down, sport
Tie the little guys down
Tie the little guys up, sport
So I can make my dime.
Watch me spin them a line, Blue
They ain’t got a clue,
I’m not breaking no law , Blue
Just keep spinning the line…
Tie the little guys down, sport
Tie the little guys down
Tie the little guys up, sport
So I can make my dime.
It’s all a bit sordid, Mac
But I got me an Audit (pronounced ORRRRDIT)
It’s all a bit sordid, Mac
You got to keep watching your back
Tie the little guys down, sport
Tie the little guys down
Tie the little guys up, sport
So I can make my dime.
Let the little guys loose, Lou
Let the little guys loose
They’re of no further use, Lou
I’ve shaken all their cash loose
Tie the regulators down, sport
Tie the regulators down
Tie the regulators up, sport
So they can’t find my dime.
The guys on the street are sore, Shaw
Maybe because they are poor
They think they can level the score, Shaw
But I have me a back door
Tie the regulators down, sport
Tie the regulators down
Tie the regulators up, sport
So they can’t find my dime.
Play your didgeridoo, Blue
Play your didgeridoo
Keep playing while I shoot through, Blue
Play your didgeridoo
Tie the regulators down, sport
Tie the regulators down
Tie the regulators up, sport
So they can’t find my dime.
Tan me hide when I’m dead, Fred
Tan me hide when I’m dead
They took me good name, Fred
And left it with maggots in the shed
All together now
I tied them all up, mate
I tied them all up
Not sure what the point was mate
But at least I keep my dime.