Labour govt 2020-23

[dobby41]

Ardern is not PM of the US, UK or Australia where the same issues are happening too.

Her influence is obviously very far reaching

[Blue Skies]

Agree no one held a gun to peoples head and forced them to buy property. However, the government is a major contributor to the house price inflation through massive sustained economic monetary stimulus and subsequent severe controls over rental property owners, buyers access to capital, and now inflation eroding the value of money and hiking mortgage interest rates. The Government is not just complicit in all of these market forces, it is the largest player by far and openly manipulates the market through various interventions and controls.

Rapid asset inflation took off around the world as Reserve Banks & their equivalents e.g. Federal Reserve, reacted to forecasts of massive unemployment & economic recessions due to the Covid pandemic, & injected huge amounts of cash into their economies. This was not a NZ problem but a worldwide problem.

House buyers were thoroughly warned the market had overshot, & that it would pull back.
There were almost daily warnings in the media from various economists, even the Reserve Bank tightened Bank's Capital requirements to protect & strengthen the banking system from what it was warning was an over exuberant market. ( remember banks like John Key's ANZ fought hard against this through lobbyists in the media seeing these tighter ratios would dampen their extraordinary profits, pretty disgraceful ).
So anyone who bought a house in the last 18 months clearly, definitely, unequivocally, knew prices were going to drop in the short term.
Sometimes you just can't protect people from themselves, but you can protect the banking system.


While the monetary stimulus contributed to house price inflation, the other things you mention have been anti inflationary.
Lower interest rates were a huge driver of house price inflation. Higher interest rates have the effect of taking heat out of the market.
Controls over rental property have taken many investors out of the market & for the first time, the numbers of home owners has overtaken the number of investors in the market.
Again buyers access to capital or the LVR's which the Reserve Bank has imposed on banks, have removed many of the highly speculative buyers who pushed prices up.

[fungus pudding]

Rapid asset inflation took off around the world as Reserve Banks & their equivalents e.g. Federal Reserve, reacted to forecasts of massive unemployment & economic recessions due to the Covid pandemic, & injected huge amounts of cash into their economies. This was not a NZ problem but a worldwide problem.

House buyers were thoroughly warned the market had overshot, & that it would pull back.
There were almost daily warnings in the media from various economists, even the Reserve Bank tightened Bank's Capital requirements to protect & strengthen the banking system from what it was warning was an over exuberant market. ( remember banks like John Key's ANZ fought hard against this through lobbyists in the media seeing these tighter ratios would dampen their extraordinary profits, pretty disgraceful ).
So anyone who bought a house in the last 18 months clearly, definitely, unequivocally, knew prices were going to drop in the short term.
Sometimes you just can't protect people from themselves, but you can protect the banking system.


While the monetary stimulus contributed to house price inflation, the other things you mention have been anti inflationary.
Lower interest rates were a huge driver of house price inflation. Higher interest rates have the effect of taking heat out of the market.
Controls over rental property have taken many investors out of the market & for the first time, the numbers of home owners has overtaken the number of investors in the market.
Again buyers access to capital or the LVR's which the Reserve Bank has imposed on banks, have removed many of the highly speculative buyers who pushed prices up.

" for the first time, the numbers of home owners has overtaken the number of investors in the market."????

What on earth gave you that that idea?

[tim23]

Your argument seems ill-informed and somewhat emotional. So how about explaining why you disagree that the government is not at fault, when it seems plain and obvious that the government interventions and controls have resulted in extreme volatility in housing prices?

Its simply the market - no different from the stock market whos investors don't blame the government when it goes south.

[fungus pudding]

Its simply the market - no different from the stock market whos investors don't blame the government when it goes south.

Govt. policies certainly affect all financial markets, including stocks. Surely you knew that.

[tim23]

Govt. policies certainly affect all financial markets, including stocks. Surely you knew that.

I'm well aware of that - thanks for the reminder but I'm sure you get my point.

[Balance]

‘Affordable housing for all via Kiwibuild’.

‘Homeless living in cars is a disgrace and an indictment on NZ.’

Ardern spinning and she spun herself out of the honesty, truth and transparency orbit.

Only 300% increase in the car dwelling homeless population since she took office.

Only 200% increase in state housing wait list since she uttered the promises on housing.

$1 billion spent on emergency housing to date - nothing to show but she made millionaires out of motel & emergency accommodation providers. 😂😂😂

[fungus pudding]

I'm well aware of that - thanks for the reminder but I'm sure you get my point.

Your original stated point was that investors don't blame the govt. when the share market slumps. I assure you most investors, like you, are well aware of what to blame.

[tim23]

Your original stated point was that investors don't blame the govt. when the share market slumps. I assure you most investors, like you, are well aware of what to blame.

Gee Gus - you being too cute for me there - the markets the market whatever government of the day.

[Balance]

Gee Gus - you being too cute for me there - the markets the market whatever government of the day.

No wonder you are still pauper poor and have no guts to back up any of your assertions with conviction.

10k bet still on offer if you have the guts to back up your assertion.