What happened Thursday

Economy / news

A review of things you need to know before you sign off on Thursday; FHBs have smaller deposits, less pollution, NZGB demand strong, the 'best' of expensive options, swap curve steepens, NZD falls back, & more

[updated]

26th Sep 24, 4:00pm by David Chaston

Here are the key things you need to know before you leave work today (or if you work from home, before you shutdown your laptop).

MORTGAGE/LOAN RATE CHANGES
Kookmin Bank has cut its home loan rates. All rates are here.

TERM DEPOSIT/SAVINGS RATE CHANGES
Kookmin Bank has trimmed its TD rates. All updated rates less than 1 year are here, for 1-5 years, they are here. Update: Westpac has raised its 5 month rate by +30 bps to 5.70%.

MORE BUY WITH SMALL DEPOSIT
There has been a big jump in the proportion of first home buyers taking out low equity loans. Almost 40% of first home buyers in August had a low equity loan.

LESS AIR POLLUTION
StatsNZ reported today that concentrations of air pollutants decreased at many air quality monitoring sites between 2016 and 2023. “PM₁₀ trends decreased at 30 out of 41 local government monitoring sites, while trends for PM2.5 decreased at 12 out of 16 sites. Nitrogen dioxide (NO2) trends decreased at 99 out of 114 Waka Kotahi monitoring sites between 2014 and 2023.” PM₁₀ and PM_2.5 are particles that can be suspended in the air and are less than 10 micrometres and 2.5 micrometres in diameter, respectively. They are primarily formed by residential wood burning, dust from unsealed roads, and industrial and construction activities. NO₂ is a gas primarily formed through burning fossil fuels.

INFLATION IS STILL AROUND
Infratil-owned One.NZ said it is increasing its mobile roaming charges by +12.5% from October 24, 2024. Because ... they can.

NZX EQUITY MARKET UPDATE
Check out our quick update of how the NZX is faring today, as at 3pm. Kiwi Property, Ryman & Contact all rise today; Oceania, Serko & FBU slumps continue.

STILL POPULAR
More than $1 bln was bid for the $500 mln available in the three NZGB tenders today. There were 109 bids and 58 won something. Yields were in fact little-changed from a similar even two weeks ago, maybe slightly higher.

THE COST OF HAVING NO MONEY CAN BE HIGH
New analysis by the Retirement Commission shows that for about a quarter of older households who have low retirement income and savings, but high levels of equity in their home, equity release products could be more beneficial for them to use instead of high-cost personal loans or credit cards. Equity release mortgages cost about 10.5% plus the fees for setting them up. But they have no repayment requirements until you leave the property. Personal loans require a regular income and can cost about 14% from a bank. Credit cards can build balances due fast if you make only the minimum payments and can cost between 10% (TSB, Kiwibank) and 28% pa (GEM Visa).

HELP FOR FARMERS TO CONTINUE
The Government has pulled its funding of the Farm Business Advice Support Fund. It was a joint initiative involving ASB, ANZ, BNZ, Heartland Bank, Rabobank, SBS Bank, TSB and Westpac. It is a service delivered by the Rural Support Trusts. But now ANZ, ASB, BNZ, and Westpac have resolved to fund the whole thing.

SKILLS MISMATCH
Aussie job vacancies continue to fall. There were 330,000 job vacancies in August, down by 18,000 from May, and well down from the peak of 473,000 in May 2022. Their labour market stats shows there were 623,200 unemployed people in the same month, of which 418,500 were supposedly looking for full-time work.

SWAP RATE CURVE STEEPENs
Wholesale swap rates are probably lower today at the short end, up at the long end. Our chart below will record the final positions. The 90 day bank bill rate is -2 bps lower at 4.90%. That is its lowest level in ten months. The Australian 10 year bond yield is up +5 bps to 3.99%. The China 10 year bond rate is down -2 bps at 2.05%. The NZ Government 10 year bond rate is up +4 bps at 4.29% and the earlier RBNZ fix was at 4.23% and up +6 bps from yesterday. The UST 10yr yield is up +5 bps at 3.79%. Their 2yr is now at 3.56%, so that curve is still positive, now by +23 bps.

EQUITIES BOOSTED
The NZX50 is up a sharp +1.2% in its late Wednesday trade. The ASX200 is up +0.7% in afternoon trade. However Tokyo is up +2.5%. Hong Kong is up another +1.7% at its open while Shanghai is up +0.6%. Singapore is also up +0.6% at its open. Wall Street slipped in Wednesday trade with the S&P500 ending down -0.2%.

OIL DROPS
The oil price is down -US$1.50 from this time yesterday at just under US$70/bbl in the US, and now just over US$73.50/bbl for the international Brent price.

CARBON PRICE HOLDS
The carbon price has changed little today, still at $61.20/NZU. Volumes traded are still light. See our new daily chart tracker of the NZU price for carbon, courtesy of emsTradepoint.

GOLD HOLDS HIGH
In early Asian trade, gold is down -US$9 from this time yesterday at US$2657/oz and off its high.

NZD SHIFTS LOWER
The Kiwi dollar has retreated, down -¾c from this time yesterday to 62.7 USc. Against the Aussie we have fallen -40 bps to 91.6 AUc. And against the euro we down -30 bps at 56.3 euro cents. This all means the TWI-5 is now at 70.1 and down -60 bps from this time yesterday.

BITCOIN RETREATS
The bitcoin price is down -1.9% from this time yesterday, now at US$63,296. Volatility of the past 24 hours has remained modest at just on +/- 1.4%.

Daily exchange rates

Select chart tabs

Source: RBNZ

Source: CoinDesk

Daily swap rates

Select chart tabs

Source: NZFMA

This soil moisture chart is animated here.

Keep abreast of upcoming events by following our Economic Calendar here ».

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94 Comments

by kiwikidsnz | 26th Sep 24, 4:04pm 1727323492

Good to see some well overdue difficult problems finally being confronted:

https://www.rnz.co.nz/news/political/529112/niwa-to-take-over-metservic…

https://www.rnz.co.nz/news/national/529094/government-signals-downgrade…

by Baywatch | 26th Sep 24, 4:20pm 1727324440

Further cuts to new hospital funding (walking back again on campaign promises) ..but landlords given priority.

Otherwise fine Otherwise it's dandy Otherwise fine Otherwise it's over the top

by kiwikidsnz | 26th Sep 24, 4:29pm 1727324951

If you read the link, hospital funding is not being cut - the current commitment (made by Labour) is being maintained.

It was never originally costed adequately under Labour in 2017 (cf. Ferries)

by JimboJones | 26th Sep 24, 4:37pm 1727325450

Haven’t we had some inflation since 2017? Have they increased the budget accordingly?

by kiwikidsnz | 26th Sep 24, 4:46pm 1727325999

"...despite the project's original 2017 cost estimates of $1.2 - $1.4 billion, it's now possible it could approach $3 billion, which would make it one of the most expensive hospitals ever built in the southern hemisphere."

by JimboJones | 26th Sep 24, 4:52pm 1727326343

Anecdotally double the cost is possibly about normal for a build costed in 2017.

Will be interesting to see what Nationals roads cost. All within their elected costings you reckon?

by kiwikidsnz | 26th Sep 24, 4:56pm 1727326582

"Anecdotally"...NZ public sector contract management couldn't run a bath

by Baywatch | 26th Sep 24, 5:01pm 1727326917

But you can apparently...but let me guess the privatisation of hospital services will be brought up shortly..(just run them down a bit more and hey presto).

Labour’s fully costed project had the budget allocated to pay for it, was bigger, and had additional capacity for mental health and MRI facilities, she said.

“National are potentially content with simply giving the old building a makeover.”

by Justa comment | 26th Sep 24, 5:18pm 1727327886

But well done Seymour ending the 'teacher only' days. Get the kids back at school everyday. The teachers have 6 weeks of fully paid term breaks to do their PD and admin.

by kiwikidsnz | 26th Sep 24, 5:27pm 1727328458

A bit off topic on this comment thread? - however a relative who works in education has informed me that the teachers contract does have callback provisions during term breaks however this then incurs additional cost payments eg childcare

by solardb | 26th Sep 24, 6:38pm 1727332722

According to a teacher on rnz the panel, teacher only days do not cut into the mandated number of 1/2 days per year. So they are actually an extra days work for the teachers.

by legrandsoir | 26th Sep 24, 7:45pm 1727336751

Yes, can confirm this as a teacher. Schools have to be open for instruction X number of half days per year and teacher only days are not part of this. Ironically the reason there have been more happening recently is because MoE mandated 3 or 4 per year as part of all the curriculum changes around NCEA.

If I am honest, I've never attended a ToD that was not a total waste of time, and I won't miss them the slightest. They tend to involve either very high level and broad presentations (AI in education, etc) that are not applicable to your daily practice, or poorly directed department meetings (think brainstorming...). There is usually a fairly generous time set aside for lunch and morning tea, then a 3:15 finish (and around 15 min of karakias).

by Justa comment | 26th Sep 24, 9:05pm 1727341500

legrandsoir, you stay in teaching, honesty and common sense, you sound on to it.

by solardb | 26th Sep 24, 9:44pm 1727343841

Typical Seymour dog whistle then, never mind the facts , just make a populous claim.

by kiwikidsnz | 26th Sep 24, 5:24pm 1727328255

Link to your "fully costed" quote?

Meanwhile:

"To make matters worse, insufficient money had been set aside for other associated costs such as a pathology lab, refurbishment of the existing facilities and car parking which are collectively estimated at an additional $400 million. No business cases have been prepared for any of these additional elements of the project."

by Baywatch | 26th Sep 24, 5:52pm 1727329941

Yes lets cancel all projects if they don't have enough car parks....

by KH | 26th Sep 24, 6:42pm 1727332941

Not a cut. Baywatch. But a limitation on outlandish cost explosion. Still going to spend 1.88 Billion.

As a local I personally know several people making megabucks for several years now from this fiasco.

Blame the committee led by Pete Hodgson. They started the project without an idea of how to finish it.

Not even s clear build plan.

by JimboJones | 26th Sep 24, 4:36pm 1727325367

Could have one of those hospitals every year, but we chose $20.

by Yvil | 26th Sep 24, 10:51pm 1727347866

I don't get this comment JJ, but clearly, many do as you have 22 upvotes. Can someone enlighten me please?

by bdogg | 27th Sep 24, 5:59am 1727373554

$20 tax cut

by bw | 26th Sep 24, 4:10pm 1727323834

"...a quarter of older households who have low retirement income and savings, but high levels of equity in their home..."

So why don't we have a system like the Aussies do? Forget the commercial lenders and their high rates and just Top Up our current Superannuation Payments if required.

"The Home Equity Access Scheme is a voluntary non-taxable loan from the Australian Government. If you own property, the Scheme allows you to use the equity in your home by borrowing against the value of your property. You receive that loan as a fortnightly income stream, a lump sum or a combination or both. You can choose how much you receive each fortnight ..."

https://www.australiansuper.com/retirement/retirement-articles/2022/01/…

by K.W. | 26th Sep 24, 4:21pm 1727324473

Because our Govt doesnt have any money. The interest rate on those Aussie home loans is a mere 3.95%. You could borrow your full entitlement and invest it at a higher rate of return. Free money.

by bw | 26th Sep 24, 4:48pm 1727326090

Much better we all toddle down to Heartland and pay 10.5% I guess. Reading between the lines of the other article on here re bank capital ratios, our Government has an implied guarantee for them if they hit the rocks.

Somewhere along the line, OUR Government is supposed to look after those who need assistance. And if it's good enough to allow FHBer to access their retirement savings, then surely it's good enough to help Last Home Owners who need to access their home equity at the other end. And the most cost effective way to do that is the way the Australians do.

by K.W. | 26th Sep 24, 4:19pm 1727324365

Another town about to be decimated as a result of the fallout of past Labour Govt's energy policies.

https://www.stuff.co.nz/nz-news/350430278/alliances-smithfield-employee…

by Baywatch | 26th Sep 24, 4:23pm 1727324613

past Labour Govt's energy policies.? Whatever

He said a collapse in the global red meat markets, reduced revenue of about $2 billion, and the $97.9m loss had brought urgent changes for the company.

In September 2022, Alliance was fined $57,000 for causing “serious harm to an environment of high value and vulnerable sensitivity” near Caroline Bay.

It is also facing four charges that allege the discharge of contaminants into a nearby creek and the Pacific Ocean north of Caroline Bay.

Environment Canterbury laid the charges against the company’s Smithfield plant following incidents related to ruptures in the same pipeline reported on December 7, 2021, and March 16, 2022.

by talking sense | 26th Sep 24, 4:30pm 1727325041

yeah long bow to point this one at Labour ... useless as they were

Good land for potential housing (site "cleanup" assumed) .... but it requires people who have jobs to move into them...

by Foxglove. | 26th Sep 24, 7:50pm 1727337043

Long ago. The time the UK entered the EEC. The hoi polloi started eating hamburgers and pizzas rather than lambs fry and a leg roast on Sunday and they and the military stopped wearing woollen blouses and similar. That’s when the writing was put on the wall.

by K.W. | 26th Sep 24, 4:44pm 1727325848

https://www.farmersweekly.co.nz/special-report/power-in-crisis/meat-pro…

by talking sense | 26th Sep 24, 5:28pm 1727328531

interesting

by Nzdan | 26th Sep 24, 5:43pm 1727329413

Started in 1999.

Electricity sector privatisation is destroying manufacturing industry

https://newsroom.co.nz/2024/08/23/electricity-sector-privatisation-is-d…

They argued that in the decade since those privatisations, the gentailers – Meridian, Mercury, Genesis and Contact (fully privatised in 1999) – paid out $10.8 billion in dividends to shareholders, while total generating capacity increased by one measly percent.

by sharetrader | 26th Sep 24, 9:19pm 1727342365

started by max bradford and sold to the public as competition amongst them would bring and keep electricity prices down, and what happened instead they focused on return for the shareholders (disclaimer i hold shares in every one of them) so they didn't rush new generation into the mix , also if you look at amount of consumption over that period as more efficient appliances etc have come on the increase has not been that great.

the gas thing is a smoke screen , 60% of all the gas produced in NZ is exported by a Canadian company that brought out all the oil companies that stopped looking years ago as no new commercial find has been found in 20 years and a lot of the really big world players pulled out of NZ years ago

Shell pulls out of search for NZ oil, gas - NZ Herald

New Zealand: residential electricity consumption 2023 | Statista

by Squishy | 26th Sep 24, 4:24pm 1727324671

Infratil-owned One.NZ said it is increasing its mobile roaming charges by +12.5% from October 24, 2024. Because ... they can.

Hopefully their clients go shopping for better deals because...they can.

by Zwifter | 26th Sep 24, 4:32pm 1727325124

Pretty happy with One NZ to be honest. Will be great when we get nationwide text coverage, still a few dead spots about the place.

by dollar_bill | 26th Sep 24, 4:32pm 1727325142

ditched voda one years ago - terrible service and coverage although spark isn't much better - another duopoly holding consumers to ransom

by JimboJones | 26th Sep 24, 4:40pm 1727325642

I was getting less than 2g in some popular parts of London last time I went over. Sometimes too much competition just leads to dilution of investment.

by dollar_bill | 26th Sep 24, 4:55pm 1727326519

the duopoly comment was more related to customer services and market gouging than to network performance. Starlink Direct to Cell via Vodafone will make sense for some people.

by K.W. | 26th Sep 24, 4:46pm 1727325967

Easier to just buy an e-sim in the country you are in then to use mobile roaming.

by kpnuts | 26th Sep 24, 6:03pm 1727330592

yep just had a couple of months in SA -- using e sims instead less than half the roaming cost for plenty of data - in Germany now for 5 days -- and hmmm $8 a day -- got 30GB e sim for a month for that they are simply savvy pricing travellers out of the market - will only keep casual short 1 week holiday makers -- once you start using he esims -- you don't go back to One and Roaming!

by Yvil | 26th Sep 24, 11:16pm 1727349389

Well, actually I have gone the other way around. I used to buy local SIM cards for about 20 Euros for 30 gb + minutes. But then I had to change my SIM card back to the NZ one to check missed calls and texts. Now I can't be bothered, I just pay the $8/day and get calls and text immediately and I can answer the phone.

by Jefferswood | 26th Sep 24, 6:39pm 1727332776

Do not pay roaming charges. Purchase your own mobile wifi unit online. Significant savings can be had travelling out of NZ with your own unit.

by Yvil | 26th Sep 24, 11:18pm 1727349528

If you call saving a few hundred dollars "significant" then sure. For me, being able to answer a phone call or not (which you can't do if you change your SIM), can be worth $ thousands, so the choice is easy.

by Baywatch | 27th Sep 24, 6:38am 1727375881

Is that your direct line to WINZ complaining about your clients?

by dollar_bill | 26th Sep 24, 4:43pm 1727325797

Seymour and his woke virtue signaling on truant kids parents - as if a fine will do anything but make things worse - worst sort of human being.

by K.W. | 26th Sep 24, 4:48pm 1727326116

Considering all the parents who pull their kids out of school to take them on holidays, or week long piss ups masquerading as funerals, there are plenty of parents who need a wake up call to sort out their parental priorities.

by dollar_bill | 26th Sep 24, 4:58pm 1727326683

yawn - another busy body. how about you mind your own business and the govt. can get lost to.

by kiwikidsnz | 26th Sep 24, 6:53pm 1727333612

Another ad hominem abuser...

Interesting that a few people consider that its a really good idea to teach their kids to ignore the laws that don't suit them, we know where that ends

by tis i | 26th Sep 24, 8:14pm 1727338467

It’s a citizens civic duty to ignore stupid rules.

by Yvil | 26th Sep 24, 11:21pm 1727349669

Let me guess, you 're the one deciding which rules are stupid and which ones are not ? (it's called believing to be above the law)

by tis i | 27th Sep 24, 5:43am 1727372602

Well I’m not gonna let someone else decide for me am I.

And I’d guarantee you don’t follow every tiny rule yourself.

by Zwifter | 26th Sep 24, 4:59pm 1727326761

I just came back on a cruise that was packed with kids, found out later that kids were traveling for free but its not the school holidays so that's basically 2 weeks of school missed. No wonder the education system is a joke these days.

by JimboJones | 26th Sep 24, 5:07pm 1727327234

Kids can learn a lot from holidays. I don’t think kids being on the odd holiday are the problem, it’s the parents that can’t be bothered taking them to school. I think we had one down the road, kids seemed to be home every day

I give the coalition credit where due, and it feels like a lot of the crime and truancy has disappeared since the election. Maybe Labour kicked it off, hard to know.

by dollar_bill | 26th Sep 24, 5:39pm 1727329145

what legislation has changed to support your reckons? bootcamps haven't even started yet. if crime and truancy have gone down it's due to the good work of the police and teachers and nothing to do with the beehive. you've been gaslighted.

by JimboJones | 26th Sep 24, 7:03pm 1727334214

The hard word can come down from ministers to ministries to mangers etc. I wouldn’t be surprised if that started under Labour considering those two things certainly contributed to their election result.

by dollar_bill | 26th Sep 24, 5:17pm 1727327858

Having had kids recently go through one of the most progressive high schools in the country and having taken them on extended holidays through Vietnam, Australia and a cruise through Pacific which included school time, I'm quite happy with their schooling. Their extended group of peers and career status and options are a testament to this. Mind your own business because we don't care what you or Seymour or the government thinks. However, don't take my word for it - listen to the feedback from Principals - this govt. is outrageously out of touch and if it wasn't so clumsy, I would be worried there is a fundamentalist agenda behind it.

by sharetrader | 26th Sep 24, 9:27pm 1727342835

seymour is coming across as so nanny state, you will do this and that i thought he led a party that was into the individual knows best not the state.

it seems that only applies when he sees fit otherwise, he will make up some woke rule,

if parents want to take kids on a holiday to gain new experience or culture knowledge outside of school it is on them to make sure they catch up on their schooling not the state

by solardb | 26th Sep 24, 9:47pm 1727344043

He gets his jollies out of acting tough, but most people can see he's pretty lightweight.

by tis i | 26th Sep 24, 5:34pm 1727328842

We often take our daughter on holidays outside of school holidays. So you can stick your opinion where the sun doesn’t shine KW. Government can too.

by powerdownkiwi | 26th Sep 24, 6:16pm 1727331401

KW - who are you to decide other's priorities?

I took mine sailing for a year. Did more for them as human beings, and more for us as a family, than any other year we had together.

Oh, but we didn't work non-stop or consume flat-out.

Sorry, forgot about that.

Put another way; Seymour wants bricks in the wall. Some folk are of different shape....

by Sluggy | 27th Sep 24, 7:53am 1727380402

We have been cruising round fiji for 6 months, huge number of kids of all nationalities on boats. Parents I have spoken too, kids doing schoolwork in the am, out in the wild in the pm. I don't think there is a better way too educate kids.

by kiwikidsnz | 26th Sep 24, 4:49pm 1727326161

Children need to understand consequences to change behaviours- especially if they're already parents

by dollar_bill | 26th Sep 24, 5:03pm 1727327004

positive experiences change behaviour not punitive ones.

by kiwikidsnz | 26th Sep 24, 5:34pm 1727328855

Both carrots & sticks change behaviours. Some techniques work better for different people: the real knack is knowing which to use when.

by dollar_bill | 26th Sep 24, 6:04pm 1727330643

neglect and doing nothing is probably the worse thing parents can do to their children. parents who don't care will not suddenly change after a fine. It's almost as if these fundamentalists are setting us up for a dystopian police state.

by powerdownkiwi | 26th Sep 24, 6:21pm 1727331708

Look at the incessant output of KKNZ.

I don't think they're that smart.

Their predecessors were less on the wrong track - but miles away from being on the one we need to take (real sustainability).

The fundy comment applies, though, and Simeon Brown is the type they sent overseas as missionaries; dogmatic, focused... and totally wrong.

And I think the S will HTF, before this term is through. They'll look like stunned mullets. Oh oh, too late...

by JimboJones | 26th Sep 24, 7:19pm 1727335191

Parents that don’t care won’t start caring after a fine, but they may take their kids to school where hopefully someone does care. I’m a fairly progressive person, but honestly some of these people need a big stick to get off their arse to do anything.

by tis i | 26th Sep 24, 6:55pm 1727333732

lol at how all of a sudden everyone’s a libertarian when it comes to how and when we take holidays with kids.

We should be treating the government this way all the time with everything.

by Yvil | 26th Sep 24, 11:22pm 1727349767

Seymour being woke, very funny. Sounds like dollar-bill, has a problem with rules and authority.

by J.C. | 26th Sep 24, 5:37pm 1727329021

Paul Pelosi unloaded shares of VISA less than 90 days before DOJ filed an Anti-Trust Action against the company.

Just so happens VISA stock price dropped 5.5%.

My woke mates say nothing to see here. Pelosi is just a smart stock trader.

https://www.foxbusiness.com/politics/nancy-pelosis-husband-sold-more-th…

by J.C. | 26th Sep 24, 6:07pm 1727330865

Artisan food companies falling like dominoes in Aussie. And these are relatively big players.

A major Australian food supplier, which had been operating for 34 years, has collapsed.

The companies trading as The Essential Ingredient, which was one of Australia’s most recognised speciality food brands, entered into voluntary administration on Thursday.

It comes just three days after South Australian dairy company Beston Global Food Company, which employs 160 people, went under.

https://www.news.com.au/finance/business/retail/another-major-australia…

by Nzdan | 26th Sep 24, 6:37pm 1727332629

Your first sentence suffered from a tragic, dyslexic, skim error at my end, I read it as "Artisan food companies like Dominoes failing in Aussie".

Coincidentally (and regretfully) had Dominoes Pizza for dinner tonight, and didn't recall anything artisan about it.

by JimboJones | 26th Sep 24, 7:22pm 1727335369

At least they make the bases from dough in front of you. I was surprised it didn’t come pre made from the freezer.

by Chaosinflesh | 26th Sep 24, 7:27pm 1727335625

Was worth an estimated $130M but only had 160 staff... overvalued and laden with debt from either savvy or poor management is what I thought when I read that.

by Let me be Frank | 26th Sep 24, 6:08pm 1727330886

No capex, and no prospects, an economy destined to fail.

Is this what we voted for?

by ChrisOfNoFame | 26th Sep 24, 7:13pm 1727334833

"We" voted for tax cuts - especially for landlords.

It seems "we" thought no further than that.

by Palmtree08 | 26th Sep 24, 7:33pm 1727335981

Tax cuts? Did we really though? Seemed more like the highly mature NZ electorate wanting to stick one up labour to me? Nats were just sly enough to bundle all sorts of right wing crap into their manifesto because the knew they were quids in.

by Baywatch | 27th Sep 24, 6:39am 1727375963

Hows that working out for the highly mature?

by Independent_Observer | 26th Sep 24, 6:12pm 1727331124

‘In less than 4 years, inflation-adjusted US government spending now exceeds the combined spending of:

- World War I

- World War II

- 1970 to 1990

This is very concerning for the long-term health of the economy’

https://x.com/gameoftrades_/status/1839003729317736952?s=46&t=MUwQeKa7M…

by J.C. | 26th Sep 24, 6:26pm 1727331981

I've pointed this out before. Like it took all off US history to rack up USD1 trillion in debt in 1981.

This year interest payments hit USD1 trillion.

Now debt increases by $1 trillion approx every 100 days.

https://www.cnbc.com/2024/09/12/interest-payments-on-the-national-debt-…

by iami | 26th Sep 24, 9:38pm 1727343537

Ronald Reagan was a nice guy but he wouldn't finance new spending by increasing taxes.

Subsequent presidents took note...

by ChrisOfNoFame | 26th Sep 24, 7:20pm 1727335201

If the US government pulls back spending as interest rates fall, while the private sector ramps up spending as interest rates fall, while the US government collects more tax (and sucks money out of the economy), it may work just out dandy.

by JimboJones | 26th Sep 24, 7:25pm 1727335512

My grandad bought a house in Ponsonby back in the day for $1k. In less than 4 weeks we spend that on food.

by IT GUY | 26th Sep 24, 8:25pm 1727339154

you should buy one, imagine what it will be worth one day

by Jonny.Foe | 26th Sep 24, 11:49pm 1727351390

It doesn't matter. Look at the USA where the govt runs persistent deficits that enrich the domestic private sector vs Norway, where govt is building up a massive portfolio of financial assets (claims on international companies). Who is at most risk here?!?

by nz-it-worker | 26th Sep 24, 6:14pm 1727331275

Auckland property developer and investor Du Val Group owes close to $240 million to creditors and investors, as its statutory managers reveal the extent of its financial obligations.

https://www.rnz.co.nz/news/business/529150/du-val-group-owes-nearly-240-million-to-creditors-and-investors

$240 million here, $240 million there, and pretty soon you're talking real money.

by J.C. | 26th Sep 24, 6:29pm 1727332154

When a butterfly flaps its wings

by tis i | 26th Sep 24, 7:20pm 1727335200

Don’t worry about it. It’s all predetermined anyway.

by J.C. | 26th Sep 24, 8:04pm 1727337874

Don’t worry about it. It’s all predetermined anyway.

Nature is complex. So is the Ponzi.

by tis i | 26th Sep 24, 8:12pm 1727338356

If only we had all the information.

by mark_a | 27th Sep 24, 6:54am 1727376884

I think its getting there - the police raid will have helped nothing gets flushed down the toilet.

Don’t worry!

by IT GUY | 26th Sep 24, 7:29pm 1727335765

that's a big butterfly

by JimboJones | 26th Sep 24, 7:28pm 1727335720

Not surprising really given the change in conditions - cost of finance up, property prices down, building costs up, demand down.

by sharetrader | 26th Sep 24, 9:34pm 1727343295

just shows how weak our FMA really are to even let it to get this far, and only because he tried to float to put a chunk in his pocket and run away .

he already did this before on a smaller scale years ago this time he just made a bigger mess

this isn’t Kenyon Clarke’s first rodeo. He was declared bankrupt in 2009 after companies that built studio apartments in Hamilton, under the control of Kenyon and his mother Jenepher, were placed in receivership, owing an estimated $50m.

by solardb | 26th Sep 24, 9:49pm 1727344188

Yup , only the honest contractors and subbies lose big time, the rest get away with it, and do it again.

by Yvil | 26th Sep 24, 10:43pm 1727347393

Infratil-owned One.NZ said it is increasing its mobile roaming charges by +12.5% from October 24, 2024. Because ... they can

Yes from $8/day to $9/day. It started out at $5/day. I'm currently in Europe, and I gladly pay $9/day for the privilege of using my phone including data, just the same as if I was in NZ. (I hope no "One NZ" reads this post though)