Black Monday

[kiora]

Political resolve to prevent a depression?

Don’t even have to spend 1 minute worrying about that - if need be, we will see ‘helicopter’ money pumped into global economies.

So we don't need to do anything but wait for more helicopter money,sounds great.We can all go on holiday

[Balance]

So we don't need to do anything but wait for more helicopter money,sounds great.We can all go on holiday

Just have to think carefully about the effect on your money in the bank of the trillions of dollars being pumped (and more to come) into the financial system.

Not a time to holiday but to ponder carefully, I would have thought.

[kiora]

Just have to think carefully about the effect on your money in the bank of the trillions of dollars being pumped (and more to come) into the financial system.

Not a time to holiday but to ponder carefully, I would have thought.

Yes very carefully,stick to investing basics & not to be caught up in the drama of it all

[Balance]

https://www.stuff.co.nz/business/120...b-losses-mount

The aftermath is going to be absolutely horrendous post the lockdown - whenever that may be.

[bull....]

For all the kerfuffle so far we still have some distance to go if we are to visit crisis levels in equities. My reading is that when the GDP and inflation (deflation?) numbers come out over the next few months we will really see if there is the political resolve to prevent a depression.

markets just being propped up with money printing otherwise we would probably be 60% down already , but still might get there in time.

On that dollar cost averaging strategy i should have said i like doing that on the way up not on the way down. if you do it on the way down you are accepting a lower future return for less risk.

invest at $8
invest at $7
invest at $6
invest at $5

average $6.50 get the jist

current price $2 you have a long way to get your money back

dollar cost averaging way better on the way up

[kiora]

https://www.stuff.co.nz/business/120...b-losses-mount

The aftermath is going to be absolutely horrendous post the lockdown - whenever that may be.

Massive S+#t about to hit the fan.I'm picking 3-400,000 unemployed.Yuck.
& Robinson suggesting a rent freeze. GHU.
When there is no rent coming in what are landlords going to do?
Property market will hit a big wall.
And then what happens to banks liquidity core funding ratio?
https://www.rbnz.govt.nz/regulation-...-funding-ratio
At least there is liquidity in the share market.

[JBmurc]

Massive S+#t about to hit the fan.I'm picking 3-400,000 unemployed.Yuck.
& Robinson suggesting a rent freeze. GHU.
When there is no rent coming in what are landlords going to do?
Property market will hit a big wall.
And then what happens to banks liquidity core funding ratio?
https://www.rbnz.govt.nz/regulation-...-funding-ratio
At least there is liquidity in the share market.

Yes many kiwis will find ticking up to the eyeballs in property wasn't such a safe play... locally with Queenstown , Wanaka so many homes empty as Airbnb + all the new apartment blocks hitting the market ...+Tourism collapse = perfect storm of Deflation

[trackers]

Yes many kiwis will find ticking up to the eyeballs in property wasn't such a safe play... locally with Queenstown , Wanaka so many homes empty as Airbnb + all the new apartment blocks hitting the market ...+Tourism collapse = perfect storm of Deflation

I'm sure the years of 30+% price appreciation down there will adequately cover most of them though lol, only the newbies will truly wear it

[Balance]

I'm sure the years of 30+% price appreciation down there will adequately cover most of them though lol, only the newbies will truly wear it

Yup - always been that way.

The long term players are happily sitting on the sidelines, ready to punch on the distressed sellers, especially distressed newbies - as they have done for the last 50 years.

[mondograss]

FWIW a rent freeze doesn't mean not paying rent, it means not increasing it. Landlords will still get their rent (mostly).

Perhaps this thread could turn its mind to what the response could\should look like from the govt.

My pick is that they will write off some\all student debt for residents and offer some sort of abatement for returning kiwis as well:
A) Grant Robertson has some form in the area of tackling student debt, so it would be consistent with past behaviour.
B) It would redirect 12c in the dollar (after the first $20k income) of debt repayments from the govt to the wider economy for those still able to work.
C) Yes it's a $15b debt asset, so it would be a big write off, but much of that is from students now overseas who may not come back so you wouldn't write all of it off.
D) It would remove a sizeable impediment to getting a mortgage or a small business loan for many.
E) It could stimulate a net migration inflow of returning kiwis, particularly if the global economy is munted, which would be a positive for growth.
F) Some will say "Ta very much", decide there's no jobs out there, claim the dole and go off backpacking around the country for a year, but as long as they're supporting domestic tourism and maybe doing some fruit picking or other odd jobs etc along the way I don't see that as necessarily a bad thing.

Anyone else like to make a prediction.