AUDNZD - Five Year Lows

[macduffy]

Pity we are talking our way into recession territory

So right, winner!

Too many commentators who automatically see the half full glass as empty. But then, they're probably talking their own books!

[winner69]

So right, winner!

Too many commentators who automatically see the half full glass as empty. But then, they're probably talking their own books!

Yes definitely pushing their own barrow, macduffy. And the crowds are joining in.

Westpac put out their Local Knowledge Report today. Of the 20 economic series they monitors net 30% (difference between % rising less % falling) are rising. Not often that high. Heaps more things doing better than last month than doing worse - glass more than half full.

But because it's slightly down from previous report the commentary is all about the sky falling in and we must have interest rate cuts and all that - wonder what their motive is?

[Daytr]

Macduffy, there is such a thing as false optimism as well.
NZ business confidence survey down to three year lows...

[macduffy]

Macduffy, there is such a thing as false optimism as well.
NZ business confidence survey down to three year lows...

Hardly surprising when dairy prices have taken a hammering and the media continually focuses on the point. But there's still a lot going right for the NZ economy that doesn't get that attention.

[Daytr]

Well the dollar is being hammered & interest rates lower, all good things for the NZ economy & they are getting plenty of coverage.
Tourism gets a fair shake & Auckland property you can't get away from in the media.
What other areas would you like highlighted?
Unfortunately its the way of the world that bad news always travels faster & wider than good news.
Back to my original point was that best be on the front foot about it rather than as Key is saying, if it gets bad we might do something.

[macduffy]

Back to my original point was that best be on the front foot about it rather than as Key is saying, if it gets bad we might do something.

Seems I must have misunderstood your original point, Daytr? I didn't read anything there about getting on the front foot.

[Daytr]

"The problem for Key is, it doesn't suit his plans for the 2017 election of having the budget back in surplus.
He's borrowed to the hilt since he has been in power & now he may have to start spending more, meanwhile the tax take is likely to take quite a hit.
More debt."

[macduffy]

Aah, I see now.

I originally read that as a criticism of JK, missing that it was actually advocating more borrowing at this point. No argument from me there, when/if such stimulus becomes necessary.

[Daytr]

The criticism was that they have kept on borrowing through the good times & now we may be heading into a period where more government spending / borrowing is required & government debt is going to have to increase more from an already elevated level.

Cheers Daytr

[Daytr]

What is doing better? The obvious from me is sheep & beef, tourism (lower dollar), so yep agree its not all negative, but be interested in hearing what other industries you think are doing better ?