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Financial Armageddon!!

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  • Originally posted by Bluekiwi View Post
    Things must be very bad indeed if people are starting to listen or pay attention to anything Winston says
    Dairy auction halt call backed
    NZ First leader Winston Peters is backing Waikato Federated Farmers' call for a suspension of Fonterra's online auction until sliding dairy prices stabilise.
    "It is high time Fonterra's board comes down from Mt Olympus to act in the best interests of its farmer-owners and not some economic theory," Peter said in a statement.

    Waikato Federated Farmers president, Chris Lewis, made the same call on Wednesday, suggesting the auctions should be suspended until prices stabilise.

    "Auctions are great in bull markets like the Auckland property bubble, but it is a terrible way to sell when markets turn ugly, as the record low price for Whole Milk Powder indicates," Peters said.

    Comment


    • A spectacular failure
      As soon as the Government admitted Solid Energy was in dire straits in early 2013, it was at pains to claim no one was to blame.

      The "perfect storm" of a high dollar and plunging coal prices was the reason, John Key, Bill English and Tony Ryall told us day after day.

      Don't blame us, don't blame Treasury and (initially at least) don't blame management.

      A number of parties should accept some responsibility for what is a spectacular failure of a major state owned enterprise.
      While the Government did not accept Solid Energy's grandiose plans, nor did it pull management into line.

      They did however write to the company encouraging them to pay them more in dividends, in effect asking management to take on more leverage.

      Comment


      • Last GFC was started by the bursting of the U.S. (United States) housing bubble, which peaked in 2004,[5] caused the values of securities tied to U.S. real estate pricing to plummet, damaging financial institutions globally.[6][7]

        Will China trigger the next crises

        Comment


        • Originally posted by JABlog View Post
          Last GFC was started by the bursting of the U.S. (United States) housing bubble, which peaked in 2004,[5] caused the values of securities tied to U.S. real estate pricing to plummet, damaging financial institutions globally.[6][7]

          Will China trigger the next crises

          https://nz.finance.yahoo.com/news/ch...112233584.html
          I think so...
          "DEBT BECOMES IRRELEVANT WITH INFLATION".

          Comment


          • You're sort of right
            Last GFC was started by the bursting of the U.S. (United States) housing bubble, which peaked in 2004,[5] caused the values of securities tied to U.S. real estate pricing to plummet, damaging financial institutions globally.[6][7]
            but actually the GFC was caused by Wall St creating the sub prime fiasco not a housing bubble.

            Comment


            • Originally posted by Damap View Post
              You're sort of right
              but actually the GFC was caused by Wall St creating the sub prime fiasco not a housing bubble.
              I can go further back that that. The Carter administration repealed the Glass-Steagall act that prevented banks from creating dodgy financial products. Then later the Clinton administration forced banks to loan money to low income people to buy their own homes. The banks then ended up with a crap-load of high risk loans. They needed to lower their exposure, so they bundled them up into financial products and on-sold the risk, which is there Wall Street comes in as the provider of these dodgy investments to the General public. It was a housing bubble created by Government intervention and compounding the risk by allowing banks to securitise the debt and on-sell where it eventually ended up in the hands of the public.
              You can find me at: Energise Web Design

              Comment


              • ^ yes quite right. My point was just that housing wasn't the issue. And actually the beginning of the whole thing was 1971. Nixon broke the gold standard. That actually created the possibility of the entire mess.

                Comment


                • another big wobble

                  Stocks fall most in 4 years as China dread infects global markets

                  JOSEPH CIOLLI AND OLIVER RENICK
                  Last updated 08:38, August 22 2015

                  "The whole world's looking a little bit sad," said Mark Lister, head of private wealth research at Craigs Investment Partners Ltd. in Wellington, which manages about US$7.2 billion. "China still looks really worrying on a number of fronts."

                  http://www.stuff.co.nz/business/worl...global-markets
                  Last edited by eri; 22-08-2015, 10:09 AM.
                  have you defeated them?
                  your demons

                  Comment


                  • China's stock market suffers biggest one-day fall since 2007

                    The Chinese benchmark soared more than 150 percent starting in late 2014 after state media said shares were inexpensive, which led investors to believe Beijing would shore up prices if needed. Urged on by state media, millions of novice investors rushed into the market.

                    Latest breaking news articles, photos, video, blogs, reviews, analysis, opinion and reader comment from New Zealand and around the World - NZ Herald


                    He said he invested 50,000 yuan ($7,900) in April, made 40 percent and then saw the market wipe out those gains.

                    "The so-called correction will finally become a long-term bear market," said Pan, 25. "So I'm considering selling all my shares as soon as possible."


                    If the same thing happened in property market here in NZ ...
                    Last edited by JABlog; 24-08-2015, 10:32 PM.

                    Comment


                    • Hi

                      Should we buy gold to protect our wealth? If there is another crisis and house prices go down, we can sell gold to buy more properties.

                      But this crisis might be different from last one?

                      Comment


                      • Originally posted by JABlog View Post
                        The Chinese benchmark soared more than 150 percent starting in late 2014 after state media said shares were inexpensive, which led investors to believe Beijing would shore up prices if needed. Urged on by state media, millions of novice investors rushed into the market.
                        When you think you have been told the numbers why not play Lotto.
                        It worked for a lot of people for a long time really.

                        Comment


                        • Sharemarket correction is well overdue in my opinion.
                          With markets driving higher and higher while those same companies are struggling to stand still.

                          I guess its only going to drive more money into property.

                          Comment


                          • I guess its only going to drive more money into property.
                            Yeah but property is really expensive too...
                            Squadly dinky do!

                            Comment


                            • But with interest rates it doesn't matter so it's not really expensive at all right now.

                              Comment


                              • Originally posted by Damap View Post
                                But with interest rates it doesn't matter so it's not really expensive at all right now.
                                Ok Damap, I don't agree with that.

                                The servicing costs and the underlying capital value are 2 different things.

                                If you were to buy a stock that cost you say $10 per share, and it cost you 3% to borrow the money to buy them, and then they halved in value, you'd be concerned right?

                                And so you should be with property.
                                Squadly dinky do!

                                Comment

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