QUESTION.
Not a single economist has been reported in NZ or Australian media, as being in favour of suspending loan repayments, other than as an instrument of absolute last resort.
Economists call these mortgage holidays, "Holidays from Hell", and have all strongly recommended against them, unless such dire financial difficulties exist, that there is nowhere else to turn.
The logic given for that advice is that the costs of taking such draconian action, are generally so disproportionate and counter productive, that it can actually bring about a ruinous opposite outcome, rather than the intended rescue.
Given this unanimous expert advice, then what dire financial difficulties of last resort, exist with the public purse, that forces council to take this radical action, which will impose such disproportionate and counter productive costs onto ratepayers?
What advice has this lay council sought or received, that justifies and causes them to discard such such compelling expert counsel, and dismiss it out of hand?
About Me
- pinocchio
- This blogspot is born out of a deep democratic concern about the continual political spin and the outright manipulation and suppression of information by local government and local media. In my view that rampant disinformation has become so extreme that it can only be considered grossly deceptive. This blogspot attempts to provide some balancing transparency to that situation. Hopefully it might even help keep the "buggers" honest.