David Shapiro tackles the prescribed assets debate – and NHI
When David Shapiro was a lot younger, South Africa's asset management sector were forced to invest 53% of the funds entrusted with them into "prescribed assets" – interest bearing bonds issued by the Government and its enterprises like Eskom. That law, together with strict exchange control regulations, played a huge role in keeping the wheels of the Apartheid system turning. Now a similarly beleaguered South African State is again considering forcing citizens to fund misdirected ideological objectives – with powerful forces within the ANC demanding a return of prescribed asset requirements that no longer exist in any modern state. Shapiro is horrified that the idea is even being considered and explains why in this Rational Radio interview. – Alec Hogg
I want to start off with prescribed asset requirements and the reason for that is that when Donwald Pressly wrote his piece for us in Premium last week, it created a lot of interest. Mike Schussler and Ian Cruickshank saying it's definitely going to happen. JP Landman and Iraj Abedian saying no way that the government would make such a misstep as to introduce prescribed method requirements so they can bail out these state owned enterprises. What side of the fence are you on?
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