Monday, February 28, 2011

Earthquake deals New Zealand a body blow

In the wake of the devastating earthquake that struck the Christchurch area on February 22, the country struggles to put its "lost star" back into place. Sadly — from my point of view, as a lender — the quake has also precipitated a rush of predictions the Reserve Bank will slash the official cash rate.

Whenever there is a crisis, the elderly, who rely on the interest they receive on their savings, are sacrificed. Yet one rarely hears anything said about this. One does, however, hear constant exhortations to save more — despite the pitifully low return the diligent saver receives.

The cartoon is from the Manawatu Standard of February 26, 2011.

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