Daily Review 24/08/2015

Written By: - Date published: 6:00 pm, August 24th, 2015 - 45 comments
Categories: Daily review - Tags:

Key Collins Eade Henry Hosking Brownlee shady bunch.jpg

Daily review is also your post.

This provides Standardistas the opportunity to review events of the day.

The usual rules of good behaviour apply (see the Policy).

Don’t forget to be kind to each other.

45 comments on “Daily Review 24/08/2015”

  1. b waghorn 1

    http://m.nzherald.co.nz/opinion/news/article.cfm?c_id=466&objectid=11502114
    The standards own Anthony Robins gets a mention and a link.

    • r0b 1.1

      Yeah – as usual Bryce has the wrong end of the stick. What conspiracy theory?

      • Anne 1.1.1

        I also noted he mentioned P. George who wrote a piece titled “Sustained attack on the media”. Priceless.

      • b waghorn 1.1.2

        No publicity is bad publicity they say. I would imagine I’m not the only one that A struggles to make sence of and B takes the reigning king of cut n paste’s articles seriously

  2. maui 2

    This story about a beneficiary buying exercise equipment and expecting WINZ to pay for it was on TV1 news tonight. Unfortunately the story reinforces many stereotypes that this is the typical mode of beneficiary thinking and whips the middle-class into a feeding frenzy. Another one of those sensationalised media stories.
    http://www.radionz.co.nz/news/national/282197/winz-forced-to-pay-for-'tread-climber

  3. adam 3

    Bill Maher – Aces it. About our so called modern “shearing” economy. New buzz word is a coming folks.

  4. Clemgeopin 4

    The economy, unemployment and the effect on house prices in Auckland:

    When reading the following report, (and reading between the lines), I am getting the sense that the house prices in Auckland will soon being to DROP dramatically.

    http://www.stuff.co.nz/business/71394850/auckland-property-investors-could-face-a-nasty-surprise-key

    “Key said the banking sector appeared to be at little risk from a downturn, with the Reserve Bank’s own 2014 stress tests showing the banks could cope if unemployment shot to 13 per cent and Auckland houses prices dropped 40 per cent”

    • vto 4.1

      yeah nah..

      this time its different..

      house prices always rise..

      /sarc

      .. (lets check back in December and see if the downturn aint started by then)

    • Richard@Down South 4.2

      Course the Banks wont make a down turn, everything that happens they make money on… the borrow money and charge even more to lend it out… at 30 or even now 50 year terms… they charge fees for using your own money, and then charge you a fee for them taking money out of your account and not having enough money in it…

      I doubt the Auckland property market will implode for any time soon (not for a few years), even if job blogs cant afford $500k or 700k for a house, someone else can, even if they are from overseas, or can leverage their current housing investments to do so… (with the NZD dropping to $0.65 USD people get even more of a bargain buying a house in NZ)

      However, your average person, as well as the NZ economy would suffer horribly with 13% unemployment

      • vto 4.2.1

        gone by December Richard, gone by December ….

      • Lara 4.2.2

        You may not have noticed but globally stock markets are crashing.

        Take a look at a chart of the Shanghai Composite, or DAX. Huge movements.

        Bear markets move fast and they can be really deep. This one is only just beginning.

        There were a lot of over leveraged people in China who now have margin calls and debt to repay. They’ll need to be liquidating anything and everything, including the NZ property they’ve bought.

        Next, take a look at NZ’s household debt. And then take a look at a chart of the NZ property market. It’s had an exponential rise.

        When markets do that they have to stop eventually. And when they do after an exponential rise the result is not a small correction, it’s a crash.

        I’ve been saying this for a while, and even though it’s a bit gruesome really I even managed to accurately predict the exact day the S&P500 would start to plummet.

        But I don’t expect many will listen. And that’s okay. That’s the nature of bubbles, most people believe it’s not a bubble, this time it’s different, and they don’t want to hear anything else.

        I’ll just continue to keep analysing and quietly profit.

        • Draco T Bastard 4.2.2.1

          +1

        • Clemgeopin 4.2.2.2

          “I even managed to accurately predict the exact day the S&P500 would start to plummet’

          That is interesting. Where did you predict the exact date? Any link?

          • Lara 4.2.2.2.1

            It’s a bit technical. It’s analysis for traders.

            The message of “explosive downwards movement” is pretty clear though.

      • Draco T Bastard 4.2.3

        the borrow money and charge even more to lend it out…

        Banks don’t borrow the money they lend out – they create it ex nihilo.

    • Pat 4.3

      the stress tests may show the Banks could survive a 40% value drop in Auckland real estate …..but could anyone else?

      • dv 4.3.1

        So your house looses 40% value.

        The bank now has negative equity

        So the sell the house.
        Yep bank OK

        Sorry house owner.

    • Clemgeopin 4.4

      Whoops, 3 rd lone :
      ‘begin’ to drop (not being!)

    • Macro 4.5

      Notice how interested Key is in people!
      Oh no – it’s the banks he’s worried about here. Even if the unemployment rate went to 13% – the banks will be ok – we “stress tested” them FFS! So it’s all ok! Key’s mates will be alright. Pity about the 13% unemployed and all the folk who just have to walk away from their life’s savings and their retirement income – the banks will be ok! So no worries folks the 1%ers will be ok.
      What a marvellous PM we have – so down to earth and caring of people.

      • Lanthanide 4.5.1

        So you don’t think the banks play an important part in daily life?

        Like, facilitating payments between parties?

        Do you realise how much damage the mere fact of the banks were shut for 2 weeks in Greece did to their economy?

        How do you think the company that re-sealed someones driveway and is expecting a 7,000 euro payment, so they can cover their suppliers and pay their staff wages, is going to fare when the banks are shut and the maximum withdrawal per day is 60 euro?

        Also, the Open Bank Resolutions in NZ means that if a bank does get into trouble, the first stop is a “bail-in” for all current depositors – any money deposited over $100,000 is fair game for the bank to claim to capitalise itself. But that mortgage you have? That just stays as it is.

        So yes, frankly I am very happy indeed that the banks can withstand a 13% unemployment rate and 40% house price drop in Auckland. You’re a fool if you think this is bad.

        • Macro 4.5.1.1

          Did I say it was bad???
          I’m commenting on the lack of concern shown by our PM over the people who will be seriously affected!
          Good grief!

          • Lanthanide 4.5.1.1.1

            As I outlined, the banks being healthy helps everyone, so yes, I think the PM did show concern for people who would otherwise be seriously affected (ie, everyone).

            • Macro 4.5.1.1.1.1

              Not if you read the whole context – and listen to the press release – He’s really not interested.

              While Key played down the risk rising prices posed to the banking sector, he expected pressure to ease in New Zealand’s largest city.

              “There’s a lot of supply now coming into the market. There’s a bit of frothiness in Auckland that I think you might see dissipate a bit actually,” Key told reporters at Parliament on Monday.

              “One of the things the Reserve Bank didn’t say but should have said [is] interest rates won’t stay low forever, so when people go and buy houses, purely on the expectation that they’re going to get a capital gain, they’ve got to be careful they don’t come in for a nasty surprise,” Key said.

              Key said the banking sector appeared to be at little risk from a downturn, with the Reserve Bank’s own 2014 stress tests showing the banks could cope if unemployment shot to 13 per cent and Auckland houses prices dropped 40 per cent.

              “The banks are stress testing, the Reserve Bank’s stress tested. Yes, there’s some more risk if houses prices go up but it is at the margins.”

              Key believed most of the investors in the property market would be locals.

              “While some will be offshore, in the residential market I think the bulk of them are New Zealand residents.”

              Frankly Key has NFI nor concern for people – it’s his “reckons” that guide his “policy” decisions.
              As for the amazing value of Banks – spoken like a bankster whether you are one or not! People survived in Greece even with the banks closed. It’s the after effects and the flow on effects that cause the hardships, and I’m talking about the 13% with out work and the people who have had to put all their earnings into having somewhere to live – mainly caused by Banks creating endless amounts of money and then syphoning it off overseas as profit and devaluing our economy in the process.
              We have our our own local trading and “bank” system here in Thames. Along the line of LETS. They are gaining popularity around the world – yes small and localised but a pathway to the future.
              http://www.slowmovement.com/lets.php

  5. vto 5

    How is it that John Key has never articulated anything worthy for our nation, never penned serious and lengthy thoughts for consideration on our society and where it is going, never spoken at length on important matters ……

    yet he makes an 8 minute loony toon piece on the flag?

    has there ever been such a shallow Prime Minister…?

    • Clemgeopin 5.1

      He is a foreign exchange currency trading gambler….and oh, an assistant Saudi sheep trader. He does things with a smiling affable manner. His skill lies in those.

    • Colonial Viper 6.1

      Yep something nasty is in process…watch out for Black September or Black October

    • infused 6.2

      As I predicted at the start of the year. Hope you all paid debt off this year. I also predicted the Auckland housing market collapsing by year end which was rubbished here… let’s see how that plays out.

      • Tricledrown 6.2.1

        Confused Auckland house price’s won’t fall much because of high levels of immigration and huge undersupply,from 2008 Auckland house price’s dropped slightly but recovered quickly.
        Unless their is a massive exodus from NZ the prices may plateau but the bubble won’t burst.
        No reason for mass migration Australia doesn’t have lots of jobs right now.

    • Lara 6.3

      Yes. I’ve been expecting this. It’s not over yet, not by a long shot.

    • maui 6.4

      I’m a bit worried about this too, but if you tell people there could be massive crash you’re looked on as crazy. So I’ll go to Nicole Foss for backup: https://www.youtube.com/watch?v=kYXA9XHFUCU

      • Clemgeopin 6.4.1

        She is so good and clear in her thoughts!

        She says there is a VERY BIG bubble building up all over the entire world, the biggest in history, and it is bound to burst soon and ‘when that happens’, the economy will crash suddenly and very deeply, causing a deep depression and huge pain that will last for ten or more years, and will be harsher than what happened during the great depression around 1930….!

        Scary stuff. I don’t think she is a conspiracy theorist, but a very intelligent, well educated, clear headed and concerned person.

        “Before starting the website ‘The Automatic Earth’, Nicole Foss was editor of The Oil Drum, a Canadian periodical, where she wrote on peak oil and finance. Nicole was a Research Fellow at the Oxford Institute for Energy Studies, specializing in nuclear safety in Eastern Europe and the Former Soviet Union, and conducting research into electricity policy at the EU level. Her long list of credentials include a BSc in biology from Carleton University in Canada, a post-graduate diploma in air and water pollution control, the common professional examination in law and an LLM in international law in development from the University of Warwick in the UK. She was granted the University Medal for the top science graduate in 1988 and the law school prize for the top law school graduate in 1997.”

      • Clemgeopin 6.4.2

        Don't worry, the economy is just fine! pic.twitter.com/NVDAnPa9V6— Koen (@Koennz) August 24, 2015

    • Paul 6.5

      Maybe you should tell the Herald.
      At the time of typing, they think that car washers, relationship break up on planes and slow cookers used as meth pots are more important news than a potential global economic meltdown.

      Shameful.
      Embarrassing.
      Provincial.
      Tabloid.
      Dumbed down.
      Ignorant.
      Rubbish.

      • Anne 6.5.1

        You forgot the terrified cow that was shot.
        Easter Sunday shopping.
        Popping Adidas rugby balls.
        Darts stars have arrived in Auck.
        Most important of all:
        Talented, hardworking blonde (my bold) can’t get a job in London.

    • Macro 6.6

      Interestingly – from one who knows (retail investor) – it’s the govt’s fault.

      With main indexes falling well below July 9 lows – hit during the height of the recent market rout and widely seen as a key level the government wants to defend – retail investors, many of whom expected monetary loosening policies over the weekend, are disillusioned.

      “I regret not having fled the market last week,” said a retail investor who identified herself only by her surname, Zhang.

      “With the market falling like this, there’s no hope at all. It’s already a bear market and the government is responsible,” she said.

      http://news.yahoo.com/china-stocks-years-gains-central-bank-fails-act-045039186–finance.html

      Nothing to do with stupid retail investors plowing money into an already overheated market – oh no! nothing to do with them! Don’t you feel sorry for these ignoramuses?

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