Bluestone: We don’t fund the commercial paper markets:

Bluestone Group CEO Alistair Jeffery writes: Re. “Round and round the subprime mess goes, where it stops, nobody knows” (yesterday, item 25). I just wanted to point out that Bluestone doesn’t fund from the commercial paper (CP) markets. We originate our loans onto term warehouse lines (364 day revolving lines from Westpac and Barclays) and then periodically term out in the securitisation markets. Our warehouse margins are fixed for the term of the line, so we don’t suffer the shorter term pricing risk that is causing RAMS problems. Our recent product pricing increases reflect our expectations of our future term funding cost, next time we securitise. We wanted to make sure we didn’t write a book over the next six months, and then securitise it into a more expensive market, and upset our portfolio margins. We’ve had to estimate what those new securitisation margins will be, and we’ve assumed AAA bonds will have gapped at least 15bp, and BBB bonds by up to 100bp, perhaps more. I do agree the larger worry at the moment is the CP markets. Any lender who has succumbed to the temptation of funding term (30 year) assets short, and shooting for the cost of funding pick-up available when all is well in the short term markets, will probably be rueing that strategy right about now!

The ethics of Peter Costello:

Robert Hulands writes: Re. “Costello speaks: an ethics lesson from a liar” (yesterday, item 1). The way I see it, if Howard and Costello want to hang onto any sort of credibility, Costello has to sue the reporters for defamation or Howard has to sack him for lying to the public in the most blatant way. Anything less can only serve to completely remove any sort of credibility from the government in their attempt to get re-elected.

Margaret Kent writes: What does Peter lack to become PM (before the election)? Is it simply courage or numbers?

Brett Elliott writes: So you’re saying the Coalition can still win the election, and John Howard may lose his seat, so in a few months, Prime Minister Costello is a distinct possibility? I’ll be having nightmares tonight, I just know it.

Joy Storie writes: …and the cocks are crowing loudly. His denials give a new meaning to what p.c. means: “politically correct” or “Peter Costello”?

The ethics of journalists:

Craig Cadby writes: Re. “Election 2007: a Don’s Party re-run” (yesterday, item 14). Why assume “Costello would deliver more of the same (as the current government)” when he has said that he was pro reconciliation bridge walk, objected to parts of Howard’s GST, loathes Howard’s tax and spend policy and his economic record in general, and is a social progressive.. More so than right wing Rudd. He had not voiced loud opposition for the sake of perceived party unity in the belief that leadership would be handed to him. If he wasn’t now too gutless to challenge and somehow became leader, with Turnbull beside him, they would likely present actual fresh ideas to the electorate rather than Labor’s soulless political manoeuvring. There could also be similarities between Costello and Gordon Brown who was unpopular before becoming leader but has since been shown affection in the new role. Sadly as sameness and gutlessness are the overriding themes in Australian politics (excluding the media and therefore electorate unloved third parties) status quo rules and we’re all the worse off.

Leah Marrone writes: Re. “How can we ever trust the Canberra Press Gallery?” (Yesterday, item 2). As I watched The 7.30 Report on Tuesday night (eager to hear the latest Costello c-ck up), I thought, hang on a minute, the ABC has just admitted to pulling a story just because Costello asked them to, and also to colluding with a commercial publication, namely The Bulletin in a deal that would increase their sales (something along the lines of “we agreed to play the story the night before The Bulletin article came out”). What happened to commercial free ABC? At least Crikey has touched on the first of these issues: 1) Costello speaks: an ethics lesson from a liar. 2) How can we ever trust the Canberra Press Gallery?

Phil Young writes: How many millions have been wasted in prime media space with journalists thinking they need to be key players in the game? Their trouble making, stirring up of tension and division covers up their laziness in communicating real stories. They follow the leaders around like sheep instead of finding the real stories in the community. Following an ordinary member of parliament could reveal much more interesting material than obtained from those with dozens of staffers preparing and coaching every word and gesture. Everyone who has trusted a journalist with background information should feel uneasy that breaking a confidence is so easily justified because they think they are part of the game being played.

Nicola Stainlay writes: Political journalists and ethics? Mutually exclusive, surely… I’ve always thought that (political) journos were only one rung up the ethics ladder from used car salesmen and child molesters, but my mate said that’s not being very kind to child molesters. I agree with David Horkan’s letter of yesterday – socks OK thanks, but I can’t see me renewing my subscription next year unless you get a bit more balance and rather less of the leftie whinging.

Prexige: Why were Australian patients over-dosed?

Simon Mcgrath writes: Re. “Prexige: Why were Australian patients over-dosed?” (Yesterday, item 4). I have been on this medication for about two weeks. When I went to get the script, the pharmacist told me the 200mg had been phased out to be replaced by 100mg as the 100mg was just as effective and the 200mg was being withdrawn. I believe the doctor is to blame not the pharmacist. I have stopped as soon as I read in the paper that people had died. The real question you should be asking is when did the doctors find out and why didn’t they contact people?

Telstra’s war:

Telstra Spinner Rod Bruem writes: Re. “Is Telstra’s war with the world working?” (Yesterday, item 26). In his report, Stephen Mayne suggests I took offence at his suggestion that it was crazy to attack journalists. This is not correct. I actually disagreed with a comment by Mayne that politicians were fair game when it came to criticism, but it was unwise to criticise journalists. It’s my belief that new media such as blogs have empowered the general community to speak out, question and indeed criticise people as they see fit. All the power is no longer in the hands of journalists, who should not see themselves as being immune from criticism, or indeed dismiss those who offer it as being unwise.

Tim Mackay writes: Is Stephen Mayne being paid to spruik Telstra and Sol or does he just do it for fun? Like the UK, the Australian regulator should judge its success by how much it decreases Telstra’s market share (and hence pricing power) and how quickly it does it. This government and any subsequent one should be determined to punish any company with dominant market power like Telstra. This should be seen as a good thing for consumers, not, as Stephen sees it, a bad thing for Telstra. Telstra’s proposed strategy will only benefit Telstra. The backbone infrastructure and required future investment should he hived off into a completely separate wholesale company and the retail rump of Telstra left to compete as one of many players, none dominant. I was a European Telco analyst for a global investment bank a few years ago. The day after Sol was appointed I told Stephen that Sol had form to watch – he was CEO/Chairman at US West for a year before walking away with an obscene payout (after years there in other roles) and then CEO at Orange for 13 months before again walking away with another big (unearned in my opinion) payout. Most of my then colleagues who’d watched him do little at Orange (but be paid a lot) privately agreed then that Australia and Telstra would probably be no different.

Robert Molyneux writes: The New Zealand government has forced Telecom NZ to open its infrastructure to competitive service providers – that is, it has preferred its “shareholders”, the whole community, over Telecom’s. As the proud owner of a parcel of Telecom NZ shares, who has made a loss of 25% so far, I am reminded of the old joke “How do you get a small business in New Zealand?” “Start with a big one!” Nevertheless, I agree with the NZ approach. Having given away the controlling ownership of a national strategic resource to part of the community for less than it was worth, the Australian Government is now using the ACCC to try to force Telstra to open its infrastructure on the one hand, while blathering about creating a competitive broadband network (with inferior technology, and less coverage) with tax money. So we will see two competing networks (as for cable television) costing additional billions which could have been directed towards producing services and information products. This is effective policy?

Bill Heffernan, what’s with this guy?

Alexandra Penfold writes: Re. “Heffernan owes Mt Theo an apology” (yesterday, item 5). Bill Heffernan, what’s with this guy? If I were a shrink I’d say he suffered from obsessive, paranoid s-xual delusion.

Poll date speculation:

Simon Bush writes: Re. Yesterday’s editorial. In yesterday’s Crikey you say that this week will be the last Parliamentary sittings before the election: “As for you Treasurer, there are two days remaining in what will in all probability be the last Parliamentary sitting before the election. Two days left to turn your maddening, itching ambition to some sort of concrete purpose. Two days left to challenge. If, that is, you are man enough.” We have two sitting weeks scheduled in the first half of September and the Canadian PM is addressing our Parliament. I am not sure Crikey is on the money on this one…? I speculated on poll dates last Friday here: Most pundits including Crikey are suggesting a November election date so that would mean the September sittings are likely under such a scenario.

Need more info:

Tom Osborn writes: Re. “From the grassy knoll” (yesterday, item 6). Your source needs to find out what the cancellation date is for these bookings. Time are booked, but can be cancelled up to a certain date. December air time is fairly easy to buy…

Craving a regular Mungo hit:

Mick Hidden writes: To all you folk who are craving a regular Mungo hit (yesterday, comments), us folk in the Byron Shire get him every week in our local paper, which the rest of you can read online at www.echo.net.au.

Why on earth are you reading Crikey!:

Eve Archer writes: Garth Wong (yesterday, comments) wrote: “I wish you would not pad out the daily email with puerile hypothetical’s contributions which do not contribute anything to a sensible factual debate on our international policies.” Dear Garth, then why on earth are you reading Crikey! Gadzooks, (slap my forehead) Duh.

Behind Big Brother:

Tim from www.behindbigbrother.com writes: Re. “Network tensions over Big Brother YouTube posting” (Tuesday, item 21). I’m just emailing in regards to your story on the Big Brother rehearsal YouTube videos. The release of those videos was not an inside job and those clips weren’t recorded on the production end of things. Endemol Southern Star have only themselves to blame because they have unknowingly been streaming this type of footage for the last two seasons. Every live Big Brother broadcast has been available to watch without ads via the internet if you know where to look. Obviously I’m not going to reveal how it’s done but nothing illegal takes place – ESS just don’t know they haven’t flicked the “off” switch. On top of rehearsals the internet stream plays what happens during ad breaks. We’ve been using it for behindbigbrother.com for a while now – for example we revealed the whole pantomime thing before the finale was broadcast (with screen caps from the stream): As stupid as it sounds there is an underground network of diehard Big Brother fans who set this sort of stuff up. Streaming mobile phone audio from the Big Brother launch to the internet is another favourite pastime of these fans. You probably saw it was finally found out by the BB producers this season and then reported by the media, but it’s been happening for years! We Big Brother watchers all had a good laugh when they kicked the wrong people out of the launch show.

Please, an end to carols:

Mike Smith writes: I’ve got to agree with Wayne Robinson (yesterday, comments), particularly in the Christmas season. Please, an end to carols. Classical music would be nice, but even if the music is out of copyright, most of the actual performances of it are not.

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