Quote Originally Posted by ananda77 View Post
...about the New Zealand Housing Market:

The New Zealand Zinger

Though the local housing market looks unlikely to pose an existential threat to Australian banks, New Zealand's housing market may give some banks a run for their money. Australian banks own most of the banks in New Zealand, where the housing market is undergoing a deeper correction as immigration to New Zealand slumps. With HOUSING ASSETS 5.7x HOUSEHOLD DISPOSABLE INCOME, NEW ZEALAND PROPERTY MARKETS ARE EVEN MORE LEVERAGED THAN THEIR US COUNTERPARTS. As the Australian Financial Stability Review states: “As at December 2008, the Australian banks’ overseas exposures accounted for around 30 per cent of their total assets, with New Zealand and the United Kingdom together accounting for about two thirds of these foreign exposures.” Considering the relative outlooks for housing markets in Australia and New Zealand, external assets are a more significant danger to Australian banks than domestic assets. This could be the hidden dragon that swallows up Australian banks in the years ahead despite its ostensibly more comfortable position versus European and American banks.

Kind Regards
I believe the Centro saga was about the first big "canary in the coalmine".

There have been and will continue to be others.

My biggest concern about Depression 2.0 is not barriers to trade, but barriers to credit.

NZ is short on savings.......what happens as increased blowback from tax-payer bailed out and nationalized foreign banks results in pressure for more domestic and less international lending?