There is an awful lot of drivel written about “business confidence” and “the market”, most of it no better than reading tea leaves.
Take the current situation. There is no “strong and stable” government to “lead” us. Maximum uncertainty! No end in sight! According to received wisdom (and all those people in a self-interested rush to ordain the born-to-rule-party) the market should be panicking! In fact:
Sharemarket ‘cools off’ after strong week
…
“Last week the New Zealand market had its best week since the middle of June — we’re probably just cooling off slightly,” said Mark Lister, head of private wealth research at Craigs Investment Partners. …
Kiwi dollar slips back
…
The electoral stalemate was not hurting the dollar as “the market is starting to accept that the downside for the kiwi from the political situation is not really happening”, said Martin Rudings, a senior dealer at OMF. …
So not even a bit of panic then. Not a jot. Fancy that.
If the poor fragile market can withstand the ravages of the current uncertainty, I reckon it can withstand a period of negotiation that is as long as required to get the job done. It might even withstand the horror of a Labour led government too. After all, it wouldn’t be the first time…*
* Treasury: “the New Zealand economy experienced its longest sustained period of growth in three decades during the years from 1999 to 2008.”
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