More people are paying off their mortgages than are signing up for new ones

You make it out that paying off a loan is a bad thing. I am one of those people who have taken advantage of low interest rates over the last few years and repaid my mortgage. Could not be happier. My motivation was nothing to do with the state of the economy it was about removing the shackles of the bank from around my neck. It is the freedom of not having to work for the bank but being able to work for myself. You would not know how liberating it is. In fact it was overborrowing which caused the GFC. Prior to the GFC, people were treating their homes and credit cards as their own personal piggy banks. This may have kept the economy bouyant and funded the government's spending programmes at the time, but it was never sustainable, as it proved.

I think the consumer should be more cautious and about borrowing and banks should be a lot tighter when it comes to lending money. Over extending your credit only ends up taking away your independence and making you poor. I do agree that our economy would never be a rock star. It is making gradual improvements, but never stellar. As much as it would be nice to continue, the people of NZ have a habit of turning it around very quickly. When that does happen. at least I will have a roof over my head.

Yep, I agree.

a) a repaid loan is in effect the destruction of the money initially lent, good to lay that fact out as ppl dont seem to appreciate this.  

b) Not just the banks though, the banking sector is way too big for the size of the future economy Nz and indeed the world, see f)

c) Diminishng loan growth, is still however growth. Steve Keen does say that Minsky points to the acceleration of debt as the driver and not debt by itself, so if that accelation is slowing so to will the economy. 

d) NZ households, Im still surprised on how bouyant that spending is myself considering so many ppls seem to have had no pay increases for several years.

e) LVR reaction, I think we can see just how badly LVR hit, many ppls seemed surprised, I guess they dont read Steve Keen on how even small changes in LVR have a big effect.\

f) Old normal, never....no more cheap energy.

regards

Agree, this is a "problem" for banks but something good for society.

When debt is paid only the loan money is destroyed, but the interest that the bank was charging is not destroyed and this money still exists in the system. In other words, a bank lends money that does not exist (!!) and charges an interest that does not exist (!!) creating devaluation of the existing money (you cannot buy the same things with $1 now that what you could some years ago with $1), inflation, legal thievery.

So yes, banks are not able to steal at the same pace (because when you lend something you don't have and charge an interest for it that should be called stealing). And when money is destroyed from the system the stock markets are more likely to fall as there are less transactions, and inflation is better controlled.

I hope one day the cash ratio for banks becomes 100%, the leverage disappears (so banks don't lend what they don't have) and society will see inflation and money increasing ONLY through real value added to society and not through debt.

I think the census just shows that the number of properites with debt is increasing at a slower pace than the number of properties without debt. Just means that the properties with debt have, on average, more debt. Which we know. All a bit of so what?

Rents falling ....landlords starting to squirm me thinks.