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Wednesday, 4 March 2009

Mascot finance: Govt deposit guarantee

Bernard Hickey from is interviewed on TV3 about this failed finance company and the implications of the government guarantee.

How the government could have let this company qualify for the scheme given they were almost bankrupt at the time, had stopped taking funds so therefore never contributed to the fund, is is beyond comprehension. Although it can be important for governments to step in when there is market failure this really highlights how governments can make poor decisions when they act too quickly without due diligence.

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