- Joined
- 10 February 2009
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The risk from doing nothing was greater than the risk from doing something...
I think storm's marketing centered around making people scared of things like inflation, becoming a burden on others and of missing the gravy train...
Once they were scared, storm could step in and 'save' them...
The risk from doing nothing was greater than the risk from doing something...
You're very likely right. Nothing as motivating as fear.I think storm's marketing centered around making people scared of things like inflation, becoming a burden on others and of missing the gravy train...
Once they were scared, storm could step in and 'save' them...
Excellent summary, Iggy Pop.
Monario, the tiny amount involved in that very small interest rate rise just on the interest owing by Storm clients, wouldn't even register on CBA's bottom line! To suggest the rise had anything to do with Storm is simply ridiculous.
CBA have already stated that they will not be 'materially affected' by the entirety of the Storm debacle.
QUOTE]
Just wanted to update you guys on what I know!!!
maybe I was been a little over the top stating that the rise had anything to do with Storm... BUT...
CBA have admitted that there exposure to storm is in the vicinity of 500MILL
(500,000,000), I reckon that would register on anyones bottom line.. I personally know of an out of court settlement between a client and CBA worth well over 250K (yet under 500K)..... I reckon they are feeling it, and perhaps to say that it was storm related was naive, but to say its not may also be!!!!
If that is an out of court settlement, i would hate to see what a court settlement would be!!!!! and times that by 1200-1500.. Hundreds of millions!!!
Just wanted to update you guys on what I know!!!
maybe I was been a little over the top stating that the rise had anything to do with Storm... BUT...
CBA have admitted that there exposure to storm is in the vicinity of 500MILL
(500,000,000), I reckon that would register on anyones bottom line.. I personally know of an out of court settlement between a client and CBA worth well over 250K (yet under 500K)..... I reckon they are feeling it, and perhaps to say that it was storm related was naive, but to say its not may also be!!!!
If that is an out of court settlement, i would hate to see what a court settlement would be!!!!! and times that by 1200-1500.. Hundreds of millions!!!
Everyone has their story for joining Storm. Ours was simple. True we had paid off our home, both supers accumulating, and the bank account growing.
And this was the problem. We were advised by many not to let our money just sit in the bank earning low interest. "Get it to really work for you". Advisers on TV (money talk shows) were telling us to put our spare cash into indexed funds for our retirement. The government was telling a similar story so as not to have so many dependent pensioners.
So we thought, 'Yes this makes sense to us". But where to start as we knew nothing about investing. So we sought the advice of a couple of what we thought were reputable advisers, Cassimatis Securities Pty Ltd (later Storm) being one of them.....and in the final washing Cassimatis Securities Pty Ltd seemed the one...especially since our trusted friend and acquaintance with our MLC super fund that was doing very well, as well as our accountant though all sounded good and above board. And it actually was back in 1997.
We believe the wheels of conservative investing fell off three odd years ago when they developed their own funds, and their priorities changed considerably.....and that is the sad story we are now in.....our story of why we joined Storm.
Altruistic? You must be joking! Many of these people were already far beyond access to government pensions in terms of their existing wealth, and even for those who were not, I rather doubt that saving their fellow taxpayers was uppermost in their minds.They sacheted into a morass of double debt, abetted by the banks in an altruistic attempt to save the state from having to pay them pensions.
No, the community does not. It's time people took responsibility for their own outcomes.If this be true the community has a duty to rescue them from foolishness in the future.
And in so doing, they are looking after their shareholders.Wayne Swan says there is no need to investigate the banks.
The banks will give them as little as possible and only where loans are proven to be defective as a result of proven incompetence.
Altruistic? You must be joking! Many of these people were already far beyond access to government pensions in terms of their existing wealth, and even for those who were not, I rather doubt that saving their fellow taxpayers was uppermost in their minds.
No, the community does not. It's time people took responsibility for their own outcomes.
And in so doing, they are looking after their shareholders.
From the foregoing I take it that greed had nothing to do with comfortable people, hocking themselves up to the eyeballs in debt, with a spinmeister par excellence like Manny Cassimatis.
They sacheted into a morass of double debt, abetted by the banks in an altruistic attempt to save the state from having to pay them pensions.
If this be true the community has a duty to rescue them from foolishness in the future.
Wayne Swan says there is no need to investigate the banks.
The banks will give them as little as possible and only where loans are proven to be defective as a result of proven incompetence.
SICAG have put certain submissions into the coming Inquiry but my bet is that nothing will come from them.
Manny will set up again.
Perhaps in funeral insurance which seems to be the de rigeur "investment" of the day at present on TV ads.
Life can be a bit of a joke at times.
And life repeats.
gg
GG,
You've been around long enough to know that:
- when it comes to finances, most of the population - and by that I mean around 70% - are inept. Just ask someone the formula for calculating compound interest.
- when money is lost, again most of the population do not hold themselves accountable for that loss. It always has to be somebody else at fault.
- the fear of losing out is a big factor. Look how many were peering over the back fences of friends, neighbours and family to see "how well they were doing" in comparison.
- regret of past decisions can have a big influence on people. Paid off house for 20 years, on age pension, want to get off age pension. So what did you do with the money you previously used to pay the mortgage? Invest it or spend it?
- are very naive in some matters. Notice how many expected the lenders of the funds to provide some form of financial advice, yet it was Storm advisers who were paid to provide advice not the banks.
I won't go on as it is too depressing except to say that as a result of the above, aka the few, the numerically very few, legislation will probably be introduced to make it more difficult and time consuming to obtain a margin loan (Like I really want to banks to go into detail of my finances - NOT.)
So what will probably happen? Forget margin loan with its in-built safety features, go for a home line of credit and hope to pay it off before your retirement date as required under most mortgage agreements. Won't that be fun.
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