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Latest Treasury bill tender not fully subscribed
Todays’s tender of Treasury bills by the Debt Management Office could hardly be characterised as a resounding success.
$350 million was being offered in 3, 6 and 12 month bills and the DMO only filled $305 million and only got that much by accepting more than it was looking for in the 6 months, resulting in a relatively wide range of 7 bp on successful bids in that maturity.
"An early consequence of the SCF receivership announcement together with the amended government deposit guarantee rules is a failed NZ Government T Bill tender", said Stephen Hume who follows the bond markets at www.omo.co.nz
42 Comments
Consequences? What does that
Consequences? What does that mean? I've never heard such a word.
Must dash. I'm off to the mall. I might buy another house on the way.
Only if you've got a good
Only if you've got a good sized deposit, ideally 100%!, Mr B! I wonder how much the banks will be lending, to anyone, now?
"An early consequence of the
"An early consequence of the SCF receivership announcement together with the amended government deposit guarantee rules is a failed NZ Government T Bill tender"
That's a hell of a shortfall, didn't Bill say the SCF debacle wouldn't affect our creditworthiness?
There were already
There were already shortfalls. Look through the news on Stephen's website. Early July there was a large shortfall, More concerning is some of the most recent news on that site.
Deposit? Why does everyone
Deposit? Why does everyone keep using such big words?
Ohhhhhh, look, Plasma TVs on sale. Want. Buy. Yum.
And four years interest
And four years interest free.
Business as Usual never sounded more illusional
Sorry Bernard, forgot you wanted it in song today:
No you won't believe in If anymore
It's an illusion
It's an illusion
No you won't believe in If anymore
If is for children
If is for children
Building daydreams
Lovin' your
Lovin' your style
cheers
Bernard
Can't the Reserve Bank just
Can't the Reserve Bank just follow the lead of the Fed & the BoE & lend the Govt the money it was short
The RBNZ isn't The Fed. or
The RBNZ isn't The Fed. or The BOE or The European Central Bank. It has to get 'real' money from somewhere ( borrow it); or else why do you think we still have to borrow $250m per week from overseas, if we could just make it up?
We can just make it up. The
We can just make it up. The RBNZ is just an arm of the New Zealand Government which is the monopoly issuer of it's sovereign freely floated currency. We voluntarily choose to borrow money from overseas for political & ideological reasons.
Ah, yes. That's what a
Ah, yes. That's what a devaluation of a currency is about. But don't expect anyone outside the country to either want to own it or use it. It will only have internal value.
@ anonymous "We can just
@ anonymous
"We can just make it up".
Yes, and devalue our currency by doing this.
Is this new to you? Read up a little.
Japan's currency is currently
Japan's currency is currently increasing in value - even as they expand the monetary base.
Wasn't this the reason
Wasn't this the reason members of the Labour party wanted to Nationalise the Reserve Bank back in 1935, to provide cheap loans to the Government for public works etc?
Looks like we are going to
Looks like we are going to get to pay higher interest rates. We can get the money but at what cost Mr Hulme? This is a vote of 'no confidence'
Guys , you may joke , but the
Guys , you may joke , but the SCF collapse is to New Zealand what Lehman Brothers collapse was to America. New Zealand 's 'Phoney little two year Recession' is now over and the real problems are only starting . The Government is going to take a backlash at home , NZ credit rating may fall , the currency could weaken dramatically and foreign investment could flow out . Its not a good look right now . The inability to raise capital today is the thin end of the wedge
Tis a good thing Bill
Tis a good thing Bill andJjohn did'nt leave town then!... we are need them on the phones
Who cares? What we should do
Who cares? What we should do is invest in green and sustainable jobs, turn off our hot water, and spend a lot more on education and health. And oh yes, complete the cycle lane as fast as possible.
I'm facetious of course, John Key is bereft of ideas, Bill English went on a borrowing binge, and the entire National Party sticks their head in the sand.
I guess you'd have a go at
I guess you'd have a go at unsustainable jobs?
'onya.
@Mr Joke: I hope you're in
@Mr Joke: I hope you're in Government.
Hang on! where would be the
Hang on! where would be the best place on earth to invest?... Answer where the interest rates are higher than anywhere else and where the Gov.pays you out if your gamble looses.
Yeah just shows how much
Yeah just shows how much confidence people have in the government, they can't even raise enough money anymore, and the money they did raise can only power the country for a couple of weeks lol, we are going to be so indebted as a nation one day THEN EVERYONE will ship off to Australia when we are a bankrupt nation. Shot.
Perhaps "people" realize they
Perhaps "people" realize they are better off with a bank term deposit yielding 2-3% more than govt bonds? Or hell - since there is no risk by investing in finance companies at 8%+ maybe they'll stick their money there??
So the 2 billion minus the
So the 2 billion minus the foreign handout, will head for the banks and the banks will turn on the credit sausage machine to produce about 18 billion in credit ready for the spring offensive on the idiot Kiwis. Throw in Kiwibanks govt underwritten foreign borrowings and hey presto we have us a few months of cheap credit driven splurging madness right up to the election. Who thought the govt gave a rat's about property being seriously unaffordable?
This amounts to QE....no ifs and no buts. A two billion dollar injection into the south island economy. Mostly paid for by Aucklanders! haha.
Agreed that this is not a
Agreed that this is not a wise move for the long term view...
This sets a dangerous precedent which is not sustainable.
But human nature will prevail.
I know all the intelligent
I know all the intelligent folks here gagging to get to the very guts of whats going down will have already read my previous posts today, they very relevant to this also
http://www.interest.co.nz/opinion/mondays-top-10-nz-mint-norse-god-thunder-save-us-investors-cats-meat-great-credit-card-rewards-progr
http://www.interest.co.nz/opinion/rbnz-needs-lift-ocr-make-it-relevant-again
SCF did no different to any other deposit taking institution in this nation, or the world, as it was allowed under the international regulations handed down by the Bank Of International Settlements to drive the necessities of life into the hands of the subsidiary special investment vehicles cross-owned by those very same international super regulators.
It gives me no pleasure to say that those who have bothered to read my research over the years will now notice I have forecast the steps in this scam before they happen, not after. That nothing prophetic, because once you study enough history it doesn't take long to realise this is a well repeated scam.
Do you wear a funny hat Iain?
Do you wear a funny hat Iain?
Ridicule wont cut it anymore
Ridicule wont cut it anymore Wally, even those with half an ounce of financial literacy are beginning to comprehend that the system that you and your banking buddies defend will never add up, that 2x2 cant equal six. That most in this system will never acheive what they are told they will be able to, no matter how hard they work. For intricate detail of the problems and the tried and tested solutions
http://publiccreditorbust.blog.com/2010/08/04/influence-of-international-banking-pyramid-scheme-upon-the-founding-ideals-of-the-international-labour-movement-and-the-new-zealand-labour-party/
If I hear one more time what has been blastered all over the banker owned and influenced mainstream media every ten minutes, "we need foreign capital because we dont have any of our own" I am going to scream because it is the greatest load of indoctrinated bollocks ever sold.
Errrr arrrrrm.... didn't you
Errrr arrrrrm.... didn't you borrow some of that capital to buy property Iain!
Gosh...I have "banking buddies"...well I never....
Wally, If you bothered to
Wally, If you bothered to read my reply to one of your other snide comments attempting to ridicule me, you already have my answer to that
http://www.interest.co.nz/opinion/mondays-top-10-nz-mint-norse-god-thunder-save-us-investors-cats-meat-great-credit-card-rewards-progr
If you don't have any banking buddies you sure do a good job of looking after them.
Hey don't blame me...you're
Hey don't blame me...you're the one paying interest to them. Imagine a world where people had to save if they wanted stuff like houses...the price of property would be... oh about 1920 levels. people could afford a place. I blame the borrowers for all the mayhem.
Here's your homework Iain...mind you learn it all by heart. http://en.wikipedia.org/wiki/Thorium
All over bar the
All over bar the shouting.
The simple fact is that this country needs first and foremost is an honest and trustworthy leadership to take us into the future. (Yeah Right).
The past reality is that we were all screwed royally by morons for the past decades.
As well as new leadership, likewise, we need a new world, first class....system for
banking and finance,
Insurance and Pension,
Sustainable Energy and renewable and sustainable infrastructure for the coming Energy crisis and its resulting problems,
Also Industry and agriculture and other employment, not based on Ponzi schemes and so-called perceived 'Capital Gains' via INFLATION of assets and screwing the TAXPAYER and rorting the investor.
What we did not want is a bloated State induced Social Welfare explosion, created by those same morons to benefit themselves via Socialising of Debt..
That that is not going to be remedied is a given, I am so very much afraid to report.
Same deckchairs, same Titanic, same crew.
Lifebelts for sale, write care of your FRIENDLY GOVERNMENT FINANCE MINISTER and LEADER, enclosing your life savings, payable to BEARER.
Now extrapolate that to each COUNTRY in the WORLD and we may just have a future.
When the WORLD wakes up.
Wakey Wakey.
What a great dish-of-ointment
What a great dish-of-ointment : Splendid message / But why NO CAPS-LOCK ON ! SHOUT MY FRIEND , and they WILL LISTEN .
And failing that , YOU'LL ANNOY OLD HICKEY : That's a measure of SUCCESS AROUND HERE !
SHOUT TO THE WORLD : " I'M MAD AS HELL , & KNOT GONNA TAKE IT ANY MORE ." ...................................... yeah , then break out the GUMMY BEARS .............
"WOW" the AUDIENCE ! .............. WAKEY WAKEY PLEBIAN FOOLS ...............
Oh come on
Oh come on guys....SCF.....just brings us into the real world,as you said, our version of Lehman Bros. It had to happen, its been coming for 12 months,remember june last year,SCF was starting to look for partners/investors?
Recapitalisation.......looking for a sucker investor
Sandy,trying to get a deal together at 4.30am...........seeking Gov help.
Blame property values falling...........bad loans,poor investments,no research
The worst could be yet to come.
Concern that Australia's
Concern that Australia's property market is overheating is prompting investors in US dollar-denominated bonds issued by the country's biggest banks to demand a higher relative yield - a shift which may have implications for local interest rates.
This is VERY interesting, and one to follow closely !
this is a must read:
Australia is in
Australia is in Recession..Thats why the retailers are having Recession Busting sales.Their level of economic self delusion ,is far more advanced than ours. With an Economy far more Americanised than ours,the untidy side of recession ,is found in well policed caravan sites.As long as Western Australia..pays the Social Welfare bill bullshit rules!
The tone of this article is
The tone of this article is misleading. Unless you have an understanding of reserve accounting and fiscal finance its probably confusing at best.
All this does (like any other govt debt auction) is convey signals to the RB and Treasury re the Treasury market. It does not mean the govt is unable to raise funds.
Similar to how a loan from a bank creates the deposit to be borrowed back (either directly, from another bank or via the RB), govt spending creates the 'non-borrowed' reserves to be mopped up with Treasuries. Notwithstanding RB market operations.
Paradoxically, the govt will have more to 'borrow' the more it spends. As the Treasury is not directly part of the banking system, thus a transfer of funds from the Treasury into the banking system raises the level of reserves able to be 'borrowed'
There can be any number of reasons for an auction to 'fail' almost all of which are technical, none fundamental. The RB sees this and works it into its market operations.
And, NZ (and all other debtor nations) dont so much borrow from overseas, as foreign domiciled entities choose to hold NZD denominated obligations. (Two sides to every coin).
As we have all seen in recent months - when the going gets tough - bondholders interest payments get cut. As such, bondholds are not prices setters, but price takers.
The NZ govt can never be forced to pay higher premiums unless the RB conducts its operations in such a way as to support higher rates, say to support a stronger dollar perhaps.
Kris, Maybe you can tell the
Kris,
Maybe you can tell the good peoples the difference between the primary bond dealers and the secondary bond market?
The group of primary bond dealers are the private entities in world finance who are the only ones who have the power to monetise the money supplies of nations as debt by exchanging it for Government bonds which are contract for their created credit to be paid out of future taxes of the nation with interest attached. It is said they compete for each allocation by auction, but in fact they have an agreement that each cant secure more than 35% of any 'underwriting operation', and these entities, apart from in USA and England, can simply choose to continue to supply your money as credit or not.
The primary bond dealers are the only ones who can create 'new credit money' at the external international level to become the primary monetary base of nations, they then choose if they do or dont sell it onto the secondary bond markets for which they get a cut called a 'spread', the secondary bond markets do not create 'new money' they are were the obligations of the taxpayers of the world are traded, mainly by the worlds elite, including the primary bond dealers, like the modern day slave trade.
Dont forget to tell it all Kris, if you know? or ask John Key, he sure as hell does.
Primary bond dealers sell
Primary bond dealers sell junk rated securities to kids year 5 - 13 . Secondary bond dealers sell higher grade corporate debt to high school children ................ Yessssssssssss , Iain ?
Hey , how's the book going , " The Complete History of the Labour Party in NZ " , got alotta forward orders ?
I think he's punnishing
I think he's punnishing himself Gummy Bear H.... for having helped those who created the credit with interest attached ....and then he went and made it all real by using the credit to buy a property that he could have saved up for and now he knows the real problem is not the boogie man who creates credit with interest attached...but that fools rush in and borrow it. Oh the pain the pain of it all. The more fools there were...the higher the prices went....the more they borrowed.
Can't wait for his book
Can't wait for his book .................... 'Cos it's still frosty ......... And we're low on firewood !
(No subject)