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  • Investors fear credit crunch

    Monday, 27 October 2008

    Property investors are predicting the end for finance companies.

    Hundreds gathered in Rotorua at the weekend for the Property Investors' Federation annual conference as global markets continued their rocky ride.

    Federation president Martin Evans said investors were impressed by news the Westpac and ANZ banks had taken up a multibillion-dollar Reserve Bank offer to purchase residential mortgage-backed securities if the banks ran short of money.

    Other banks were expected to take up the Reserve Bank offer.

    Economists at the conference predicted banks would be the last lenders left standing as credit conditions tightened. "Money won't be so easy to get you will have to put a better case to the bank to get your money," Evans said.

    "And they are saying there won't be any non-bank lenders soon, it will be only the banks that will be lending money."

    Investors at the conference said they wanted to have more control over their investments, rather than buying in to property ventures run by middle-men.

    "A few people got burnt by that," Evans said.

    "People fairly realistically realise that there is going to be a downturn in the economy and we're going to go through bad times. But the bankers were saying New Zealand will fare well."

    Economists at the conference predicted the official cash rate would fall to 4.75 per cent, but Evans was sceptical.

    "I don't know how they can predict that. Last month they were saying petrol would never drop below $2 again, weren't they?" he said.

    Reserve Bank Governor Alan Bollard last week cut the official cash rate by 100 basis points to 6.5%.

    Massey University banking expert David Tripe said prediction that banks would soon be the only lenders might not be borne out.

    "One of the things about the (Reserve Bank) deposit guarantee scheme is that it actually chucks a lifeline at a number of other participants in the market," he said.
    http://www.stuff.co.nz/4740205a13.html
    Last edited by muppet; 27-10-2008, 09:47 AM. Reason: added link
    Patience is a virtue.

  • #2
    Good hear hundreds have turned out for the conference - if it were not for a sick dog we'd have been there.

    No surprises re the predictions of non-bank lenders going to ground we have been witnessing this for a few months now with seemingly strong lenders freezing assets etc.

    As the saying goes - "the deeper the recession the stronger the recovery" - here's hoping this time next year we are seeing some turnaround.

    Cheers,

    Donna
    SEARCH PropertyTalk, About PropertyTalk

    BusinessBlogs - the best business articles are found here

    Comment


    • #3
      What a strange article. That was so entirely not what the conference was about at all??
      Typical journalism. The very name of the conference was "Steaming Ahead" and the demise of finance companies wasn't even monetioned :-)

      (Just over 220 attendees)

      Comment


      • #4
        Yes and what is this meant to mean:

        'Federation president Martin Evans said investors were impressed by news the Westpac and ANZ banks had taken up a multibillion-dollar Reserve Bank offer to purchase residential mortgage-backed securities if the banks ran short of money.'

        Why were investors impressed????

        Comment


        • #5
          Like i said it didn't happen, just silly reporting.
          Martin opened the conference, spoke for about 60 seconds, that was it :-).

          Comment


          • #6
            Geez it makes you wonder about everything you read if reporting on actual events can be that shoddy and inaccurate!

            Cheers,

            Donna

            umm what did happen? Only good news please I have to say I am fed up with 'doom and gloom' - probably because it is getting towards the end of what has been a very challenging year.
            SEARCH PropertyTalk, About PropertyTalk

            BusinessBlogs - the best business articles are found here

            Comment


            • #7
              Originally posted by donna View Post
              Geez it makes you wonder about everything you read if reporting on actual events can be that shoddy and inaccurate!

              Cheers,

              Donna
              I'm surprised you are surprised !
              Reporters are often lazy, manipulative & put their own spin on things to fit in with the crowd mentality or to create a "more interesting story".
              (some might even go so far as to say they write what the big boys want the public to believe, not what is actually happening,.... but I wouldn't be one of those)

              That's why I put more credence in the informed discussions about the articles on some of these blog sites, than I do in the articles themselves.
              That belief is strengthened when I see comments like those above from those I consider experienced enough to know what actually happened.

              Long live blogging !
              Food.Gems.ILS

              Comment


              • #8
                Originally posted by ream View Post
                Yes and what is this meant to mean:

                'Federation president Martin Evans said investors were impressed by news the Westpac and ANZ banks had taken up a multibillion-dollar Reserve Bank offer to purchase residential mortgage-backed securities if the banks ran short of money.'

                Why were investors impressed????
                I second that. Why is that "impressive"?

                Someone enthusiastically told me about John Key's suggestion for a scheme that offering support payments and loans to people who lose their jobs. It will help people get back into the workforce and be aimed at middle-income earners who have mortgage commitments but no savings.

                Isn't this getting a little absurd? The Nats want to bail out those who probably shouldn't have a mortgage in the first place, while those who are renting or own their home have to pick up the tax bill.

                By this time next year, it looks like the vast majority of NZers will be eligible for some kind of welfare.

                I'm glad I'm not paying for it.

                Comment


                • #9
                  Tanmedia said:
                  By this time next year, it looks like the vast majority of NZers will be eligible for some kind of welfare.
                  But they already are now.
                  "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

                  Comment


                  • #10
                    Originally posted by muppet View Post
                    Tanmedia said:


                    But they already are now.
                    I guess you're right. Pretty amazing that they're thinking about subsidizing mortgagees because they're incapable of providing for themselves.

                    Comment


                    • #11
                      Originally posted by tanmedia View Post
                      I guess you're right. Pretty amazing that they're thinking about subsidizing mortgagees because they're incapable of providing for themselves.
                      Tan on the bright side, the employees can now have fewer personal scruples to just unload their excess of marginally productive workforce straight onto the taxpayer without fear of own conscience.

                      Heaps more and easier layoffs to come.

                      Good Key honestly said this though. I now have two major socialist party blocks to vote against.

                      Comment


                      • #12
                        Originally posted by 67910241 View Post
                        Tan on the bright side, the employees can now have fewer personal scruples to just unload their excess of marginally productive workforce straight onto the taxpayer without fear of own conscience.

                        Heaps more and easier layoffs to come.

                        Good Key honestly said this though. I now have two major socialist party blocks to vote against.
                        That's one way of looking at it. No wonder Owen Glenn gets so upset. I could only really vote for ACT but they seem to have their fair share of nut cases.

                        Comment


                        • #13
                          Originally posted by tanmedia View Post
                          I could only really vote for ACT but they seem to have their fair share of nut cases.
                          I still can't forgive them for wanting to send the NZ troops to Iraq to show their loyalty to that Texan redneck and his unsavoury mates, but otherwise I reckon Rodney's a jolly good bloke, would make up my mind in a NY minute.

                          Comment


                          • #14
                            Labour sent them anyway
                            Nigel Turner

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                            • #15
                              I think ACT wanted to send fighting troops to Iraq whereas Labour sent Engineers. Labour did send SAS teams to Afghanistan though.
                              You can find me at: Energise Web Design

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