By: wehekasna
11/09/2008
9:50 am Yahoo! Profile:
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Why is it that suppossed know all economists insist our houses are well overvalued and the dollar is way to high.
Building costs are not going to drop any time soon, so you have just paid $500,000 to build a nice house (cost) and Michael Cullen tells you it is worth 30% less, why??
People are told when the dollar falls, interest rates will come back and we will all be better off? B.S. the xtra cost of living, fuel, power, food etc will make life much harder for the average Kiwi.
When our dollar was around $US0.45 the country was in the doldrems, apart from a few happy exporters who can't compete in the real world.
I think a dollar around $US0.70 is fine, I hope house prices don't fall too much, even though I have sympathy for people trying to get into their first home.
Any strong economy has a strong currency, Why does the dickhead from the RB want ours low? |
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By: jogger7733
13/09/2008
11:37 am Yahoo! Profile:
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| NZ should have common currency with Australia |
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By: kev_tither
16/09/2008
3:23 pm Yahoo! Profile:
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| Well in the minds of the many 'well' (yeah, right!) informed Asian investors who kept our Dollar at an over inflated amount the last two years we are 1 economy. I would tell them the Australian and NZ economy were not linked but we would still be dragged up as Mining continued to prosper and Bollard kept our Interest Rates up. |
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By: drum.bass@xtra.co.nz
25/09/2008
11:18 am Yahoo! Profile:
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The so-called 30% overvalued property market is a smoke-screen.
If you look at the stats this is not the overiding driver of inflation in NZ.
It's an easy target - and lets face it, if our 'TV' economists were that smart - they'd be running the show.
Thay all have agendas here.
The Bank Economists have product to sell - as does Gareth Morgan (the most vocal against Kiwisaver...anyone heard of Gareth Morgan Kiwisaver?).
The fact is - the market will always outguess the economists. |
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By: sianbull
26/09/2008
8:40 pm Yahoo! Profile:
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| nz dollars fine,enjoy it while we still can |
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By: shuaigejacobhoo
23/10/2008
12:46 pm Yahoo! Profile:
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| Because Labour made our economy worse. |
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By: moca777
24/10/2008
10:24 pm Yahoo! Profile:
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NZ housing is overvalued when compared to the average NZ wage. My figures aren't exact but NZ'ers pay somewhere near 70% of an average salary (one person) to support their mortgage whereas it is desirable to be under 30% of an average salary.
When interest rates drop, investors aren't interested in investing their money in the NZ ecomony and the NZ dollar falls accordingly.
As NZ is a small economy it is best to have a lower rate of exchange so it can compete in the world market re exports which bring in revenue to NZ and can eventually be shared around the 'haven' even though this means less overseas travel for the average person as they can't exchange their money for such a lucrative rate. |
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By: george-tracy@xtra.co.nz
25/10/2008
11:04 am Yahoo! Profile:
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| the housing market works like the stock market demand+supply+affordabili ty+confidence at present with rates dropping house prices are not and will not rise as any savings and snapped up with rasing food cost pertol even though cheaper is still expensive. New Zealanders at present have lost confidence and affordabilty is slipping as bank rack up requirements to borrow money. Avalibilty of funds is the big one, banks have gone conservative, people dont relise banks have only really stepped fully into the home loan markeyt in the last 10 years, they have just lost Billions and Billions. The housing market will fall alot more based on the fact there just will not be the competition to buy the property, and 60% of our housing market is investment based, even peoples own properties are bought in most cases as an investment rather than a Home. So yes 2009 will be toughest year we have seen in a long time. |
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By: george-tracy@xtra.co.nz
25/10/2008
11:06 am Yahoo! Profile:
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| i meant the last 20 years banks have stepped in to a larger extent |
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By: don.crossan
3 days ago (Tuesday, 9:02 am) Yahoo! Profile:
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| Totally agree - time for NZ to grow up and have a common currency with Australia. It's not hard to imagine that in the near term we could be looking at a 'one-world' currency anyway. We've taken the lead before. DSC |
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By: gam.wilson@xtra.co.nz
2 days ago (Wednesday, 6:01 am) Yahoo! Profile:
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| Good morning peoples |
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By: kiko0401
2 days ago (Wednesday, 10:16 am) Yahoo! Profile:
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The reason that MC talks so loosely is that in most cases he is pandering to his party faithful, which is in whole, irresponsible.
I know it seems unreasonable that your $500,000 home may be worth less now, but the markets are sometimes fickle and in the short term that is the market place. In time the pendulum will swing and property will reflect it's replacement cost.
Looking further out, and with the world wide intervention by governments, we can expect to see, with massive deficit budgets a looming hyper inflationary scenario that will make your house a @2.0m. bonanza.
Hang in there...... |
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By: ejdwyer@xtra.co.nz
Yesterday (10:14 am) Yahoo! Profile:
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Common currency with Australia? When Kiwis were debating the name for a hypothetical common currency a couple of years ago, Aust Treasurer Peter Costello was asked for his opinion. He said, verbatim: "I there's ever to be a transtasman currency it will be called the Australian dollar and nothing else." Yes, Costello is history now but in negotiations we would still be faced with raw Australian nationalism as reflected by that quote.
Decisions directly affecting our lives would from the outset be made in Canberra. I'm afraid Aussies are not distinguished by charity in their various trade dealings with us as they tend to act unilaterally in their own interests. Remember the Air New Zealand incident, the continuing apple fireblight saga, tightening of immigration rules for Kiwis and so forth. All the bargaining power lies with Australia. It may be that future developments will oblige us to merge with the Australian currency. But for my part I'd wish to see this particular opportunity for 'closer relations' to quietly pass us by for as long as we can manage. |
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