12 Reasons why NZ's economic bubble will end in disaster
Concluding with:
Here is what to expect when New Zealand’s economic bubble truly pops:
- The property bubble will pop
- Banks will experience losses on their mortgage portfolios
- The country’s credit boom will turn into a bust
- Over-leveraged consumers will default on their debts
- Stock and bond prices will fall; the New Zealand dollar may weaken
- Economic growth will go into reverse
- Unemployment will rise
Also reported in Stuff
3 comments:
What a load of *nonsense*.
This guy is nothing more than a tealeaf-reader.
I'm interested in *facts*, not fortune-teller predictions, and the facts show that our economy is roaring along and nothing that this guy waffles on about will stop it.
He's been listing to Pacelitch too much.
Oh really?
Anyone with an ounce of economic house knows our house prices are vastly overvalued.
Anyone who can add knows that borrowing a billion dollars a month is simply crazy.
And those two facts - much more than Fonterra's windfall - describe NZ's economic performance over the last five years.
It is a fact that NZ's massive welfare spend - funded primarily by borrowing - is completely unattainable.
It is a fact that Key has done absolutely nothing to remove substantial welfare dependency from NZ society --- remember that the biggest welfare items by far are Super, Health and Education.
It is a fact that renaming the Dole & DPB makes no appreciable impact on those figures.
It is a fact that rather than phase out welfare so NZ can cope with the next crisis --- Key's borrow and hope plan means that when the next crisis hits, NZ will have no choice but to terminate large amounts of its welfare state with absolutely no compensation or time to handle the change.
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