Not saying you are wrong, but what exactly do you think they screwed up in the housing market?
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The housing 'market' and country / taxpayer / future generations were screwed as soon as Central Banks went all-in on their daft 'wealth effect' and governments starting underwriting buyers and absolving them of risk.
"Darling, should we really be paying $1.6 Million for this house?"
"No problem babe, the government won't let us ever get into negative equity. It's the taxpayers problem now. We can pay any old price we like, and it'll never be our problem!"
This is the difference between investing, & a government backed rort. Once the government commits to bailing out market particpants come what may, then is no limit on where prices will go.
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Ardern was asked whether the Government’s latest and ongoing housing policy reset was really only wanting house price inflation to moderate to around last year’s 4 per cent rise, rather than for house prices to actually fall. What would be so bad about a fall in house prices, she was asked.
“It is much more sustainable to have those much smaller increases. I think people expect that you see that in the market,” Ardern said.
“What we also accept is that for most New Zealanders, their house is their most significant asset. So if you see, for instance – as was predicted at the beginning of the year – a significant crash in the housing market, that impacts, of course, people’s most significant asset,” she said.
Here’s the full transcript to show how the admission came:
Tibshraeny: But just – sorry, one more thing. When I–
PM: Your one question!
Tibshraeny: – go to buy shares, I don’t expect that they will always increase. That’s the part of an investment, they go up and they go down, so why –
PM: And you have got into the heart of the issue.
Tibshraeny: Why is it different for housing?
PM: This gets to the heart of the issue of why so many New Zealanders turn to the housing market. Thanks.”
The prime minister then walked up past Tibshraeny and left the Beehive Theatrette.
Nice one fellas, keep on with your 'Left vs Right' tribalism and ignore the role of Central Banks in all this.
The Reserve Bank is so powerful the best that Minister Robertson can do is write a letter to the Governor asking him if he wouldn't mind considering something.
Maybe take your crusade up on the following thread , RBNZ being independent and all ,best to keep them out of the political debate.
https://www.sharetrader.co.nz/showth...GOVERNOR/page9
And my post was in answer to the idea from Balance that we should do as Singapore do. It was then pointed out that they use their Sovereign fund and that National (Muldoon) scrapped ours way back.
Context is everything!
Of course, Key kept saying that there wasn't a housing problem so wouldn't do anything to help.