Mortgage Funds Were Always A Risky Business

Sydney Morning Herald

Tuesday October 28, 2008

Mortgage funds were always a risky business

Even under the deregulated system banks were under much tighter controls than mortgage funds and were inherently a lot safer. Mortgage funds were always an out and out investment, offering the chance of very good returns but at a much higher risk than a bank deposit. Investors in them well knew this, or ought to have.

Moreover, in practice everyone is obliged to have a bank account, even if their only income is from a government pension. No one is obliged to put money into a mortgage fund.

Thus the considerations that justify a government guarantee of bank deposits do not apply to the funds. Investors in them should be left to bear the consequences of the risk they took with open eyes.

Greg McCarry Epping

While many investors have been severely disadvantaged by the fact that trusts have blocked access to their funds, they can at least be comforted that the trusts have also stopped outputs of trailing commissions to advisers. Haven't they?

Glenn Meeves Kings Park

Nothing to lose

The dive in value of the dollar should be no surprise ("World wallops Aussie dollar", October 27). Australia is the No.1 country in the world for personal debt per head. We owe the world something like 3.5 times the gross national product. With the slowdown of the world's economies, why wouldn't anyone owed money by Australians look for a safer place to invest?

Stan Hunter Banora Point

Good news! All that money I've lost in the past few weeks was worth only 60 cents in the dollar anyway.

Tony Turner Tuross

Sense and censorship

David Marr ("Brush with Henson becomes rush to change porn laws", October 27) states: "Artists arguing for the right to make child porn are as rare as artists prosecuted for doing so. Roughly zero."

If this is the case, what harm could come from legislating against the right of artists to make child porn? Roughly zero. Balanced against the potential harm from the making of child porn, there is no case for artistic exception.

David Grunstein Bondi

The sexual exploitation of children is indefensible, but so is the populist knee-jerk reaction of imposing up to a 10-year sentence for possession of child pornography. No one should go to jail for looking at a photo. There are more effective ways of dealing with this insidious behaviour and politicians know it.

It's true, changing laws and eroding already fragile civil liberties doesn't cost nearly as much as ploughing resources into tracking down those who profit from and distribute these images. As with the illicit drug industry, harassing the dope at the end of the food chain may grab headlines, but the people profiting from all this are just laughing in their champagne.

Bruce Hulbert Lilyfield

In response to Liam O'Brien (Letters, October 27), I would argue that the government's role is to facilitate self-censorship. If images and content were rated similarly to movies, parents would be able to deny access to inappropriate websites or those without ratings. Adults who wish to view such content can do so unfettered.

Michael Richardson Cranebrook

Where do I get software to filter out Senator Fielding and any offence he may cause?

Paul Mackey Kogarah

No such thing as a free lunch

As I read online yesterday's horrific story about the alleged faeces in the gelato ("Free ice-cream on the day hotel addressed the stink", October 27), an advertisement showing on the page was for a gelato-making school. I can't think of a better example for Stephen Conroy of how internet keyword technology is still hopelessly indiscriminate and dumb.

Lloyd Swanton Wentworth Falls

I thought everyone knew to never make a fuss at an eatery. You have no idea what will be done to a replacement meal before it gets to you. Ask anyone who has worked in one what happens out of sight of the customers: spit, or far worse, added to your plate before it is delivered to you.

If you don't like the food, just leave it on the plate or leave the eatery. Don't act like a jerk; it may come back to bite you.

Lois Walker Chelsea (Vic)

I'd love to see the sandwich options at the Coogee Bay Hotel.

Paul Falconer Thirroul

Do they also serve pea soup?

Arthur Gray Wentworth Falls

Just phone around

People like Justine Fischer (Letters, October 27) who are upset about Telstra's bundles and lack of customer service can vote with their feet.

Yesterday morning I went to various competitors and within two clicks on each website had a bundle price for home, mobile and internet. Prices for just a phone service were equally easy. All were significantly cheaper and some offered discounts for seniors.

When I moved recently, Telstra told me my internet service couldn't be relocated one kilometre away. Two weeks later a helpful Telstra salesperson at my front door tried to sell me the same service. I halved my internet costs and went with somebody else.

Brian Kelly West Pennant Hills

Bombers deserve to die

One positive thing, Ron Sinclair (Letters, October 27), is that the execution of the Bali bombers will ensure these vermin never do it again. Which, considering their unrepentant stance, is highly likely. That is a benefit to families who will not have to bear the unimaginable pain of losing loved ones in such cowardly attacks.

Matthew Adams St Ives

Let the DPP take over

Miranda Devine tells a heart-rending tale of pressures on police prosecutors in local courts ("Police caught with their briefs down", October 25-26). One option proposed by Justice Wood in his royal commission report into police corruption was that all local court prosecutions should be assigned to the Director of Public Prosecutions.

If the police want to relieve themselves of this terrible pressure, they might let go of their turf war mentality and let professional lawyers do the prosecuting.

Joe Weller Lewisham

© 2008 Sydney Morning Herald

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