ADRIAN ORR our NEW RBNZ GOVERNOR

[Aaron]

There are a few clues in here if you read between the lines. . .

https://croakingcassandra.com/2021/0...netary-policy/

It was a long read but I am guessing the clue is the Crown Indemnity graph. I suppose this will fluctuate with interest rates but if they hold to maturity will it matter as long as there are no defaults by the NZ taxpayer? Wading through articles like that highlights how little I understand.

[GTM 3442]

It was a long read but I am guessing the clue is the Crown Indemnity graph. I suppose this will fluctuate with interest rates but if they hold to maturity will it matter as long as there are no defaults by the NZ taxpayer? Wading through articles like that highlights how little I understand.

I'm picking that the liability occurs due to purchases at >$1 on the secondary market, followed by redemption/maturity at $1 - i.e. RBNZ knowingly paid >$1 for something worth $1.

Let's hope that the income stream is sufficiently compensatory.

[Panda-NZ-]

ECB willing to accept inflation above 2%.

https://www.cnbc.com/2021/07/08/ecb-...o-decades.html

Great move & should help their economy in the future.

[Aaron]

ECB willing to accept inflation above 2%.

https://www.cnbc.com/2021/07/08/ecb-...o-decades.html

Great move & should help their economy in the future.

What is the benefit of constantly rising prices?

[TeslaGod]

It's not the house prices that have gone up your spending power has gone down.

1950/60/70 Father worked =House 1 income

1980/90/2000Father & Mother work= House 2 incomes

2020/30/40 Father & Mother work & Invest in shares/business 3+ incomes = home ownership.

Or is it easier to complain to mainstream media and politicians in the hope that your hurt feelings may help you into home ownership.

[Aaron]

It's not the house prices that have gone up your spending power has gone down.

1950/60/70 Father worked =House 1 income

1980/90/2000Father & Mother work= House 2 incomes

2020/30/40 Father & Mother work & Invest in shares/business 3+ incomes = home ownership.

Or is it easier to complain to mainstream media and politicians in the hope that your hurt feelings may help you into home ownership.

Not sure what your point is with that last line but with the loss of spending power are you suggesting we have more kids to help pay the mortgage. I think some countries value children as an economic resource when they live in a **** hole country. Or that people should stop whining and accept whatever is being provided. I agree that might be their only option as there are no political parties suggesting scrapping targeted inflation and the planned erosion of spending power.

Latest tinkering by a weak govt and weaker RBNZ.

https://www.msn.com/en-nz/money/news...?ocid=msedgntp

[winner69]

Agree with Michael here

@MHReddell
Ever more new distortions and financial repression under this govt and set of central bankers.

Nothing in here suggests banks are vulnerable, and the health of the financial system - not of indiv borrowers - is the statutory tests.

rbnz.govt.nz/news/2021/08/r…

https://twitter.com/mhreddell/status...052973593?s=21

[TeslaGod]

Not sure what your point is with that last line but with the loss of spending power are you suggesting we have more kids to help pay the mortgage. I think some countries value children as an economic resource when they live in a **** hole country. Or that people should stop whining and accept whatever is being provided. I agree that might be their only option as there are no political parties suggesting scrapping targeted inflation and the planned erosion of spending power.

Latest tinkering by a weak govt and weaker RBNZ.

https://www.msn.com/en-nz/money/news...?ocid=msedgntp

My point being is you need multiple sources of income preferably passive, to buy property in the future (or now) every one complaining about house prices doesn't get them any closer to home ownership.

Although I'm sure it makes them feel better, but like a dopamine hit from a like on Facebook..it's not real or any more closer to home ownership.

[Aaron]

My point being is you need multiple sources of income preferably passive, to buy property in the future (or now) every one complaining about house prices doesn't get them any closer to home ownership.

Although I'm sure it makes them feel better, but like a dopamine hit from a like on Facebook..it's not real or any more closer to home ownership.

You need to start saving for a house, agreed. But where do you invest to get your passive income in todays market at a return greater than the rise in house prices?

It is not the governments or central banks fault??? So you don't think lower interest rates and easy money affects house prices? Or that govt policy makes no difference to the housing market? Or that we could vote for a political party next election that proposes to end targeted inflation and work out a way to create a market place for interest rates free from central bank interference.(Although there are no parties proposing this, even the libertarian ACT party is OK with central planning for the financial system.

[TeslaGod]

Agree with Michael here

@MHReddell
Ever more new distortions and financial repression under this govt and set of central bankers.

Nothing in here suggests banks are vulnerable, and the health of the financial system - not of indiv borrowers - is the statutory tests.

rbnz.govt.nz/news/2021/08/r…

https://twitter.com/mhreddell/status...052973593?s=21

It's not this governments fault.
It's happening world wide, even a 3 hour plane flight across the ditch and they have a liberal capitalist government incharge.

Blaming governments, Banks don't help you to home ownership it just makes you believe you can't own your own home.