Financial Armageddon!!

[speights boy]

Cyprus Smyprus....
Here's a real chance for some buying opportunities...

North Korea declares war on South Korea

www.stuff.co.nz/world/asia/8490663/North-Korea-declares-war-on-South-Korea

[drelly]

Cyprus Smyprus....
Here's a real chance for some buying opportunities...

North Korea declares war on South Korea

www.stuff.co.nz/world/asia/8490663/North-Korea-declares-war-on-South-Korea

You mean the impending radioactive wasteland that we formerly called North Korea?

[speights boy]

Yes; as long as that can be avoided then freeing the country from that regime has some advantages.

Bit tense while it is going on though; if it ever comes to that.

Perhaps he has been photoshopping his nukes, just as he has been with his other military hardware recently.

[cube]

North Korea vs the US isn't a problem, China vs the US might be, though.

Do we need to remove the 'Financial' from the thread title?

[speights boy]

Quite possibly cube.
Personally I think the Chinese attitude to the peninsula is very different to the 1950s.
They are not very happy at all with Kim Jong Mentally Ill's increasingly irrational behaviour.
The US actually doesn't have a huge presence in the ROK.
Chinese huffing and puffing over a few disputed rocks claimed by Japan and Vietnam seems to be what they are comfortable with at present.

What I meant by buying opportunities is the old "buy when others are fearful" adage.

If there is conflict in Korea, will that affect Auntie Mavis's decision whether to sell her home in Takapuna and move to a retirement village?
IMO; not in the slightest.

PS: STOP PRESS.
We'll do our bit.
www.stuff.co.nz/world/asia/8491259/NZ-frigate-heading-to-Korean-trouble-zone

[Commercial Dan]

Look out for 2016 or earlier!

2nd financial crisis is coming, look out in 2016 or so, could be a bank run, severe deflation coming. Cyprus is just the start, grow property portfolio over next 1-2 years but sell down and be conservative before bubble bursts by 2016.

Get $$ out of bank, 2016 will be 10x worse than 2007 in NZ/Aust.

[ENP]

2nd financial crisis is coming, look out in 2016 or so, could be a bank run, severe deflation coming. Cyprus is just the start, grow property portfolio over next 1-2 years but sell down and be conservative before bubble bursts by 2016.

Get $$ out of bank, 2016 will be 10x worse than 2007 in NZ/Aust.

Hi,

Since you can predict the future, can you please let me know next weeks lotto numbers. I'd quite like to win Powerball.

[speights boy]

Quite right ENP....full steam ahead and damn the torpedoes.

Assuming that Powerball is not your primary investment focus;
1. How is property going for you,
2. How are shares going for you,
3. How are bonds going for you?

[Damap]

CD, what do you think this will do to US interest rates?

[Keithw]

CD, whats your basis for 2016 ?
Thats also a pretty wide window.

Personally I think Cyprus & the implementation in June of the policy by the Reserve Bank to allow them/ Govt/ whoever to raid bank deposits to repay Country debt will result in something happening in the very near future.
The Europeans thought they had the first E100k guaranteed, but that turns out to be a worthless political lie & many are losing the majority of their deposits in exchange for worthless shares in the bank in which they had deposited their money. ie they suddenly became "investors" not the savers they thought they were.
Canada is also proposing similar regulation & talking of raiding deposits without actually having any particular bank in overt trouble.
How easily it could happen in NZ.

If something drastic hasn't happened by 12 Sept 2015 I am picking a financial collapse bigger than 2007 on that day.

I agree with the comment on money in the bank being a high risk, and Cyrpus has undermined any credibility that banks once had for being a safe place to store money, however my concern is what is going to happen with interest rates on borrowings.
If any savings are withdrawn & used to pay down loans, yet the interest rates skyrocket during/ after a crisis (eg 20% as happened in the 80's 90's or whenever it was), then your property assets are still at risk of being foreclosed, or simply stolen in the same way bank deposits have been in Cyprus.
ie all your savings disappear when your equity is stolen either by foreclosure or by property confiscation.
Dont believe that would happen ?
What is the Govt proposing regarding building "Affordable Housing" & Govt owned rentals ?

Trust No One - especially banks & politicians

[AMR]

The confiscation of private assets has happened in the past under the Soviet government. Many people would rather destroy the asset than hand them over to the government. From Wikipedia:

In November 1929, the

Central Committee decided to implement accelerated collectivization in the form of kolkhozes and sovkhozes. This marked the end of the New Economic Policy (NEP), which had allowed peasants to sell their surpluses on the open market. Stalin had many so-called "kulaks" transported to collective farms in distant places to work in agricultural labor camps. It has been calculated that one in five of these deportees, many of them women and children, died^{[citation needed]}. In response to this, many peasants began to resist, often arming themselves against the activists sent from the towns. As a form of protest, many peasants preferred to slaughter their animals for food rather than give them over to collective farms, which produced a major reduction in livestock.

[speights boy]

And yet people are flocking to the Banks to borrow at high LVRs, to invest in an illiquid asset, with no safety net behind them. Sometimes for no other reason than FOMO. (fear of missing out)
Strange innit.

Some may consider "their equity is being stolen"

Others simply see it as a transfer of wealth from the overly indebted to the liquid rich.
The same as happens during every financial crises.

[Keys]

How do you remain liquid rich if the banks steal your liquidity?

[speights boy]

Sorry Keys.
I don't understand when you say..." the banks steal your liquidity..."
What does the bank have to do with you selling a liquid debt free asset?

[speights boy]

ie all your savings disappear when your equity is stolen either by foreclosure or by property confiscation.
Dont believe that would happen ?
What is the Govt proposing regarding building "Affordable Housing" & Govt owned rentals ?

I don't know.
What are they proposing?