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15 Responses to “Special report on the RBNZ’s Financial Stability Report”

1. Les Rudd Says:
   November 11th, 2009 at 1:40 pm

   Bernard – at 2mins in, If RBNZ can selectively, stipulate and tighten capital requirements for rural lending, why can the same be done for speculative residential property investment? What is holding them back from holding back this key source of inflationary pressure?

2. Wally Says:
   November 11th, 2009 at 1:46 pm

   That’s a ‘no brainer’ Les….”what is holding them back”….you mean to ask “who is holding them back”.

3. Les Rudd Says:
   November 11th, 2009 at 1:58 pm

   Wally – yeah, I recall you and I bantering on similar recalling that Simpsons episode where Homer joins the a secret society in Springfield, the chorus of the song they were singing being, “We do, we do” in answer to the question of, “Who controls etc, etc” Maybe it is actually like you and Jacko were discussing here:

   http://www.interest.co.nz/ratesblog/index.php/2009/11/06/opinion-how-neoliberalism-has-failed-new-zealand/#comment-45835

   Who knows?

4. PeterR Says:
   November 11th, 2009 at 5:57 pm

   The FSR on dairying:

   As noted in previous Reports, the distribution of this debt is heavily skewed, with many farms holding relatively small amounts of debt, while a smaller proportion are very heavily
   indebted.

   Something for the dairy debt deniers to digest.

   The RBNZ is though putting a very positive spin on their assessment of the problem as illustrated by this statement regarding MAF’s data on the distribution of farm debt:

   It is likely that large corporate farms (which in many cases have been more highly geared than smaller operations) are underrepresented in this sample.

   There is of course not even one large corporate dairy farm in the sample as MAF clearly spells out:

   The dairy models represent seasonal supply properties (i.e. excludes winter milk and town supply) that are owner operated and supply to Fonterra. The West Coast South Island commentary-only report is based on seasonal supply owner-operated dairy farms supplying to Westland Milk Products.

   The point about corporate dairy farm debt not being represented in industry surveys is though well made.

5. AndrewJ Says:
   November 11th, 2009 at 6:30 pm

   PeterR
   Our own little subprime bomb just waiting to detonate. Sh*t going everywhere, not just in our rivers.

6. andy hamilton Says:
   November 11th, 2009 at 6:40 pm

   Les – you mean this:

   http://www.youtube.com/watch?v=eQ-KZyniB4c&feature=related

7. PeterR Says:
   November 11th, 2009 at 6:40 pm

   Andrewj

   And a possible (at this stage it is still mostly based on hope) extra $100 million a month in dairy farm incomes from the increased payout projection is hardly going to stem the tide of $300+ million a month increases in farm debt.

8. Farmer Will Says:
   November 11th, 2009 at 6:46 pm

   Ah, but assuming the $6.05 payout happens, many live to get through one more season. I spoke to an equity partner of a southland dairy farm today. This will holt their downward slide for a few months.
   This is going to drag out a lot longer than we originally thought.
   Not so for other industries I suspect. Sheep and Beef, cropping, vineyards, orchards… Debt debt debt all drowning in a sea of it.
   I just read your comment PeterR as I posted. Similar thoughts.

9. Wally Says:
   November 11th, 2009 at 6:48 pm

   Yep you got that right Les. Them puppet masters know a trick or two. Got the pollies by the snouts when it matters.

10. Les Rudd Says:
    November 12th, 2009 at 8:17 am

    andy hamilton – thanks for that.

    Wally – it sounds like ‘The Stonecutters’ have got it in for electric cars mate, cover your copper, beware:

    http://www.youtube.com/watch?v=eQ-KZyniB4c&feature=related

    Enjoy.

11. Wally Says:
    November 12th, 2009 at 8:24 am

    Can’t run you tube Les!

12. Jacko Says:
    November 12th, 2009 at 8:39 am

    @Les & Wally, not to worry, the Stonecutters got a website, http://www.nzba.org.nz/

13. Les Rudd Says:
    November 12th, 2009 at 8:49 am

    Jacko – ha, ha, that’s not nice. However I see they are doing right by their members and pushing back:

    http://www.stuff.co.nz/the-press/news/3054227/Inquiry-finds-banks-pocket-interest-cuts

    “A spokesman for Finance Minister Bill English said the Government had predicted nothing would come out of the parliamentary inquiry “and nothing has”.

    I don’t think that’s correct, some useful stuff has come out of this inquiry and I hope government will start resolving some of the problems highlighted.

    (I just can’t that blasted song out my head now, shame you can’t view the clip Wally.)

14. David Says:
    November 12th, 2009 at 9:21 am

    Anyone see Roger D on seven last night?
    He is fully loosing it!
    Ripped into a genuine guy, small manufacturer, that suggested we should try and support kiwi made products. RD said if we were going to spend $300 on a kiwi product we should buy $100 Chinese tat instead. No mention of where the $300 came from in the first place of course.
    He’s still stuck in his 80’s neo con fantasy land, and nasty with it.

15. Steve Netwriter Says:
    November 12th, 2009 at 9:44 am

    I think the title should be:

    Special report on the RBNZ’s Financial UNStability Report.
    

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