ear's business
I amused myself today with the Biz Quiz, a page of multiple choice questions which appears to be a tongue-in-cheek approach to a few of the national and international financial disasters for which this year may be long remembered in the minds of some people. I’m thinking of those people, who for reasons best known to themselves, made poor choices when investing their money and now stand penniless, having lost – according to some newspaper reports – the proverbial shirts off their backs, not to mention the roof over their heads.
Multiple choice questions allowed the whole quiz format to take on a humorous aspect, with that old chestnut ‘all of the above’ putting in frequent appearances, plus a whole lot of tongue-in-cheek and hilarious red herring answers.
The quiz led off with BHP Billiton’s takeover offer for Rio Tinto followed by words of wisdom from a leading whitegoods and furniture retailer here in Australia, who always has plenty to say about everything. When I read these words again I wonder what he was thinking when he said them; if indeed he was thinking at all at the time. “We’re over retailed for the population we’ve got.....bulky goods developments have proliferated over the past 20 years and we’re one of the main offenders”.
Now let me just read that last sentence again. Over retailed. Oh, I get it. You’ve imported, with the help of those container ships bringing their daily cargoes from far-away places to our capital city ports, way too much stock and now having done your sums you find there aren’t enough people to buy all the whitegoods and furniture crammed into your stores. Oh dear.
I can only assume ‘bulky goods developments’ is retail jargon for stores that stock large items: beds, refrigerators, plasma TVs, lounge suites, washing machines, clothes dryers and dish washers. There is absolutely no doubt about the proliferation of these stores; they are everywhere and the main attraction seems to be their ability to offer cheaper and cheaper goods while at the same time sacrificing quality.
We are reminded that the Australian Government stepped up to the plate at the request of the banks to guarantee their deposits; a jolly good thing because banks in other countries seemed to be toppling over at an alarming rate. It is nice to know that if something nasty comes out of the woodwork and devours your life’s saving that the government will stump up a small amount to tide you over until better times arrive.
A leading childcare provider lost its lead smartly when the GFC struck and the combination of over extending one’s ambitions and rising interest rates made for a lot of crying in the playground sandpits and other places. A brewing company kicked out the chief executive because its shares were underperforming and the shareholders were decidedly unhappy about this state of affairs. A petrol retailer who struggled to show a profit when oil prices rose along with the Australian dollar then excelled themselves by still struggling to show a profit when oil prices fell and the Australian dollar fell. I ask you; what is going on here?
And now I am going to let you share in the quiz.
Here is the final question:
Leading economic forecasters believe that share markets in 2009 will:
a) Fall perhaps as much as 50%
b) Gain perhaps as much as 50%
c) Matter not one iota, given everyone’s packing their pickups with guns and canned food and driving into the hills
d) Be a crap shoot
Hint: there’s no right answer here dear readers. The choice is entirely yours.
And best of luck for next year with your nest egg. Maybe under the mattress is the best option. Of course that creates its own problems; it might mean sleeping on the floor. After all you don’t want to smash the nest egg do you?
Labels: finance




