You Rule!. The price you paid for your house - the main economic factor. RBA report.

**McDuck** · 19-12-2012, 07:04 AM

From this mornings Herald. (OCR / Micro Tool prediction)

" if anybody thinks they did understand property markets and the link with financial stability, a quick spin through the conference papers will disabuse them of that notion"

Link here >

http://www.nzherald.co.nz/residentia...ectid=10854767

**gavinc** · 19-12-2012, 05:43 PM

I can't even follow the article -

**McDuck** · 20-12-2012, 07:01 AM

Originally Posted by gavinc

I can't even follow the article -

True,
the basic idea is that it’s better to have a stable economy than a volatile one.
Central banks try to do this by keeping inflation low.

This report, by the RBA, indicates that housing finance contributes to instability on a scale far greater than previously understood.

This points to our RBNZ using micro prudential tools to target housing market price stability.
Central banks don’t want to go near this type of activity; they see it as more of a job for Politicians.

**gavinc** · 20-12-2012, 07:46 AM

McDuck - you should get a job as a journalist - concise and to the point.
There are to many articles (especially in the Herald) that are either a real effort to read or incomprehensible, I reckon 4th and 5th formers could in many cases write more coherently.

**Bob Kane** · 20-12-2012, 11:33 PM

Sounds like a bunch of guys proposing solutions to a non-existent problem.

**McDuck** · 21-12-2012, 07:45 AM

Originally Posted by Bob Kane

Sounds like a bunch of guys proposing solutions to a non-existent problem.

Are you going as far as to say that even the OCR is a solution to a non-existent problem?
Are you possibly even going as far as to suggest a "bloody in tooth and claw" type approach to the economy?

**Davo36** · 21-12-2012, 01:51 PM

McDuck none of the regualtions and/or regulators seem to work anyway.

They audited Ross Asset Management just recently and found it to be really healthy!

We've only had the reserve bank act since around 1990 to control inflation, we didn't need it before that, and it hasn't stopped a big slump hitting us since it was introduced. So do you think it's worth having?

**speights boy** · 21-12-2012, 02:08 PM

Originally Posted by Davo36

They audited Ross Asset Management just recently and found it to be really healthy!

Davo
Who is 'they'; and do you have a link for this please?

**Davo36** · 21-12-2012, 06:25 PM

The FMA, their offices are across the road from them apparently.

What I mean is they certified him as an AFA not that long ago, despite the fact that he was running a ponzi scheme..

http://www.interest.co.nz/news/62366...s-investors-as

**McDuck** · 21-12-2012, 07:49 PM

Originally Posted by Davo36

McDuck none of the regualtions and/or regulators seem to work anyway.

They audited Ross Asset Management just recently and found it to be really healthy!

We've only had the reserve bank act since around 1990 to control inflation, we didn't need it before that, and it hasn't stopped a big slump hitting us since it was introduced. So do you think it's worth having?

Not sure, I thought they had no choice, as the graphs of the time show inflation going through the roof.

My thought was that if your population is putting all its money into say Tulip Bulbs,-
then for the first time in history you will find yourself in the odd position of having to regulate Tulip Bulbs.

So since money and speculation can find its way into the most unlikely of places,-
you might expect to have to regulate the most unlikely of activities.