gold_medal wrote on Jan 5
th, 2013 at 3:44pm:
Sir lastnail wrote on Jan 5
th, 2013 at 3:33pm:
gold_medal wrote on Jan 5
th, 2013 at 3:27pm:
Sir lastnail wrote on Jan 5
th, 2013 at 3:16pm:
gold_medal wrote on Jan 5
th, 2013 at 11:22am:
Bobby. wrote on Jan 5
th, 2013 at 11:17am:
Longweekend,
we all contribute far more than the 10% tithe by way of tax.
This money goes to social security to feed & house the poor.
What is your problem?
very very little of it goes to the genuinely poor that the Chuches help. if you think your taxes are an alternative to a social conscience then congratulations - you have none.
so does the church give the 30,000 homeless in Melbourne a $250 social welfare cheque each week if as you say very little of it goes to the needy ??
I doubt it
the federal budget is $300B. you work out what percentage that is... nah, you wont. it is less than 0.1% which by any definition is VERY LITTLE.
well it doesn't come from the fricken churches does it ? which is why they had it all stashed away in Lehman Brothers bank before it went belly up !!
you really are a first rate jerk. nothing you are ever told sinks in past your own opinions. get over it. no body agrees with you but your gay stalker mate.
oh really f.ckstick. Care to elaborate on the following story ?? What will be your pathetic excuse this time ? They needed to earn enough interest until they had enough to help the poor
get the bugger out of here will you sick bastard
Quote:Debt crisis could cost charities millions
ALMOST a year after the subprime debt crisis emerged in the United States, the same financial products which have exposed NSW councils to hundreds of millions of dollars in potential losses are threatening charities, churches, children's hospitals, nursing homes and dozens of councils across the nation.
Gosford City Council is one of the worst affected: it faces having a $74 million portfolio wiped out.
The Herald has obtained information about the Australian accounts and investments of the Wall Street investment bank Lehman Brothers, which shows St Vincent De Paul Society, the Starlight Children's Foundation, the Boystown charity for underprivileged children, and the Anglican, Baptist, Uniting and Catholic churches all hold structured finance products. Many may now be worthless.
Lehman was the most active promoter of collateralised debt obligations (CDOs), a complex "derivative" product whose underlying assets were US mortgages and vehicle and credit-card debts all packaged in a high-yield security.
They were marketed with Australian names such as Federation, Tasman, Parkes, Flinders, Kokoda, Kiama and Torquay. But despite the marketing spiel that the diversity of underlying mortgages made for a safe investment, the toxic loans in them contaminated the entire market for the products, leaving no buyers.
The National Australia Bank recently wrote down the value of its CDO portfolio by $1 billion, or 90 per cent. Most of the charities and councils which hold CDOs are yet to make writedowns, and thereby concede they will incur losses. But there are no buyers. Some councils contacted by the Herald said they had not written down the value of their CDOs as they were still producing income.
Despite a $4.8 billion profit handed down by the Commonwealth Bank early this week and the generally robust financials of Australia's big banks, hundreds of smaller financial institutions, charities, super funds and government bodies have been weakened by their exposure to fancy structured finance products.
Besides Gosford's $74 million portfolio of CDOs, Hurstville had $25.5 million, according to figures leaked to the Herald; the St Vincent de Paul Society has funds under management with Lehman, which mostly comprise structured finance assets of $8.9 million; the travel group Flight Centre $55.7 million; Charles Sturt University $17.5 million; Metro Ambulance Services $30.5 million.
Twenty councils are preparing a class action against Lehman Brothers to recover their losses, including Armidale, Blaney, Deniliquin, Gilgandra, Kiama, Narribri, Parkes, Walcha, Wingecarribee and Port Macquarie.
Of the charities and councils contacted by the Herald, none have been affected in an operational sense, as they are still getting interest payments. The State Government has given councils tougher investment guidelines and is monitoring the situation.
http://www.smh.com.au/news/national/debt-crisis-could-cost-charities-millions/20...