NZ Sharemarket plummeting

Written By: - Date published: 12:52 pm, May 21st, 2010 - 9 comments
Categories: business, capitalism, Economy, john key, national - Tags: , ,

John Key’s “Don’t Be Jealous” Budget has done little to stop the European contagion from ravaging our sharemarket – at time of writing down 2.4% and still falling.

The NZX company itself has dropped more than 5%, leading other significant losses by Fletcher Building, Sky City, and Contact Energy. Telecom is now down to an historic low for its shares of just $1.99, although CEO Paul Reynolds won’t mind with the massive pay increase he’ll be getting from the tax cuts. But don’t be jealous! It’s important to recognise the stellar contributions of our wealthiest earners even if their performance does result in gargantuan losses.

It seems that fueling inflation and cutting government revenues with tax cuts we’re borrowing a billion a month to fund doesn’t do much for confidence in the underlying structural health of our economy after all.

Who would have thought?

Update: the market closed down 2% today.

9 comments on “NZ Sharemarket plummeting ”

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  1. ianmac 1
    21 May 2010 at 1:06 pm

    Mr English wants us to invest more in shares. Hence the tax cuts so we can. Now a good time? I will have $1.85 to spend.
    And remember Mr Reynolds will also get a bonus of perhaps another million to compensate ummm something.

  2. Bored 2
    21 May 2010 at 1:10 pm

    Over the last year since the bail outs of banks and businesses deemed “too big to fail’ we have seen the markets recover around the world by between 30 and 40%….this has slipped around 10% in the last month.

    The recovery was fueled by the state funded bail out money which got sucked back into re-inflating a speculative bubble. Of course the real issue is debt, which is fine if there is growth, or real productive profits to pay for this. What is happening currently is not what the market analysts with their insider gobbledygook tell us, it’s plain and simple that the costs of the bill exceed any real return on the amount “invested’.

    NZ is a mere microcosm of this, failure of the corporations to maintain profitability, scare liquidity at a reasonable rate, high unemployment, consumer spending squeezed by a drying up of credit, considerable private sector debt etc etc etc. Our markets are inexorably tied to those on Wall St, we are at the periphery of the great imperialist capital flow system. When Wall St or the DAX gets the shakes we go too.

  3. ak 3
    21 May 2010 at 2:08 pm

    Having enthroned the anonymous gambler at the incitement of the Scribes, the hapless populace now stood agog as he rifled their purse for his masters’ pleasure: and wore his slippery spin with crossed fingers; impotent, jangling balls on the rigged roulette wheel of Fortune, waiting for the promised north-of-fifty wind that they now know, never will blow.

  4. travellerev 4
    21 May 2010 at 2:19 pm

    Maybe now is a good time to watch Money as debt 1 and 2 Again and while you’re at it the Money Masters.

    Than realise that the Money Masters i.e. the Bank of England and the Federal Reserve of New York have been given vast new powers and that John Key has been very closely aligned with Robert Rubin (via his boss at the time Stephen Belotti 1996) and the Federal Reserve and you get the picture.

    And than go get a PINT (captcha, well the one before I forgot to fill it in but the new one is “offers” which is what our masters feel we should make because they are important and we are not) which is what I would have done if it wasn’t for the fact that me and alcohol aren’t the best of friends.

    Happy waking up

  5. Zak Creedo 5
    21 May 2010 at 5:04 pm

    Oh lordie, sprout, am I surprised at you linking kiwi with euro.. please gettit—the market traders want (and are willing be of service to those who would want them to) distractions like that to play out…

    play..?

    why yes, for as soon as France went alongside M/s Merkel(Germany) this was no longer ‘woman alone’ stuff—yep, stocks and secs came on back the very next day..

    so what gives..? IMO those naughty(or not nice traders) couldn’t be seen hosed off by a US Senate dissing the GOP filibusterers (the vote went 59-39 to the Dems) and making to settle financial reform in the good ole USA.

    Not being seen has (via media) given effect to uninformed folks falling over themselves for a link to suit their existing preferences.

    Besides, the NZD is trade-tied some to the USD. If you look over gold price movements they have been minor, a clue to suggest how recent stock buys have been on borrowings(loans).. why so.. bcos banks make their profits both here and there from fees, charges..

    The US reforming schedule pretty much tells folks to get out of anything they can.. that does not suit of course.

    Travellerev sure has a thing about money masters, I do wish her well however in coming to understand that the international financial ship of state (and statements) is run like any good sailing ship by the mates: not masters. 🙂

    capcha: KILLED – how apt.. make my day, admit freudian froops!

  6. Scott 6
    21 May 2010 at 9:07 pm

    Sorry to tell you this, but the Budget had nothing to do with today’s stockmarket plunge, and it really wouldn’t have mattered what English had announced yesterday. When overseas markets plunge so does ours.

  7. ak 7
    21 May 2010 at 11:51 pm

    I’ve said it before and I’ll say it again: here we go. Dow at 10k. Only fat finger involved this time is the RBA, and it aint fat enough for the two of us.