How international market forces affect NZ property

[Jeffa]

The amount of lies that came out of Fed chair Jerome powell made me nauseous this morning

He blatantly lied in saying they hadn't started Q.E

Wtf? When is QE not QE?

It's all over there balance sheet ? They printed 300 billion to buy the bonds/securities from these struggling banks, at a higher price than these banks paid for?? seriously this is inflationary !

Not one of those government sponsored mainstream media had the balls to ask this question or most likely were not allowed to ask this question...the whole system is corrupt as fk.

Don't trust what comes out of any of these central planner's mouths.

I don't agree on everything Peter Schiff says but he's spot on in this interview.

[Jeffa]

Man I'm good, why pay for Tony Alexanders premium content when I explain what's going on and what's going to happen in a couple of short posts

Should we start charging for all this inside information Donna?

[Jeffa]

The amount of lies that came out of Fed chair Jerome powell made me nauseous this morning

He blatantly lied in saying they hadn't started Q.E

Wtf? When is QE not QE?

It's all over there balance sheet ? They printed 300 billion to buy the bonds/securities from these struggling banks, at a higher price than these banks paid for?? seriously this is inflationary !

whole system is corrupt as fk.

Don't trust what comes out of any of these central planner's mouths.

[Jeffa]

Almost 400 billion printed in less than 2 weeks by the Fed, this will land on house prices in NZ.

[Jeffa]

Fed fund rate was raised to 5% this morning, the same as the global financial crisis.
J Powell said they didn't expect rates to be cut this year,
The market disagrees, and thinks J Powell is talking through a hole in his ass,(similar to politicians) just like the market disagreed when J Powell said inflation was transitory, the market sold off several months before the Fed starting raising rates.
Don't follow what the Fed says, the market is already pricing in rate cuts starting in June
Today's round of 3 month Bond yields(June 2023) was down to 4.66% from today's 5% fed fund rate.
Which is a rate cut..

Who do you believe in this interview, a big U.S banker who takes his orders and toes the line from the Fed, or believe the market?

[Genkiwi]

Until they stop the flow of debt/liquidity...then it all comes crashing down as has started in the US banking system.

Thanks for spelling it out Jeffa.
Cheers

[Jeffa]

Until they stop the flow of debt/liquidity...then it all comes crashing down as has started in the US banking system.

Deutsche Bank in trouble
Janet Yellen in closed door meeting

Bond yields continue to fall..

[McDuck]

[Frezzinghot]

Deutsche Bank in trouble
Janet Yellen in closed door meeting

Bond yields continue to fall..

Wowaweewoo!

[BlueSky]

On Reuters the Fed said no more interest rate rises.

The fight against inflation continues and that is FEDS sole mandate for now

Mortgage rates are still above 6.5 percent, and with inflation at 6 percent there isn’t a whole lot to bring them lower until inflation comes down or the economy slows materially,”
https://www.bankrate.com/banking/fed...nners/#savings

[BlueSky]

I continue to buy into this market.
[/QUOTE]

What are you buying and where? Based on discount but what about yield?

I think as more and more mortgage owners are coming off low fixd rates into 6's or 7's , there will be more pain to come.
market sentiment is dire atm and many are bailing out already so one can imagine the pain when this comes into effect.
better deals still to come

[Jeffa]

I'm confused Mcdee was Marama Davidson referring to these white people? Seem like harmless folks to me?

[Jeffa]

I continue to buy into this market.

What are you buying and where? Based on discount but what about yield?

I think as more and more mortgage owners are coming off low fixd rates into 6's or 7's , there will be more pain to come.
market sentiment is dire atm and many are bailing out already so one can imagine the pain when this comes into effect.
better deals still to come
[/QUOTE]

US authorities are weighing an expansion of an emergency lending facility, per Bloomberg ,

Here's how it works

The Fed prints a trillion or so

It buys the mortgage backed securities off the so called struggling US banks , some not so struggling

The US banks have to get a return on the newly printed trillion ,

It goes to ANZ, Westpac Kiwibank etc

Hey! wanna loan bro ? I can do you a better rate than the RBNZ?

NZ banks go, chur , sweet as, how much?

US banks go, we can do 3%

Sweet as cuz, giz 200 billion !

NZ banks will loan this out on the longer term rates at 5%

So it's unlikely the housing market in New Zealand will crash once rates start coming in at 4.5 to 5% by perhaps by the spring..it will only push up house prices.

[Jeffa]

The fight against inflation continues and that is FEDS sole mandate for now

Mortgage rates are still above 6.5 percent, and with inflation at 6 percent there isn’t a whole lot to bring them lower until inflation comes down or the economy slows materially,”
https://www.bankrate.com/banking/fed...nners/#savings

Your free to believe what central banks say

But I see it this way

What's the point in bringing down inflation, when the economy has collapsed

You can have all the low inflation you want with 20 to 50% unemployment, negative rates wouldn't fix this.

As soon as the U.S hits the recession panic button which is looking likely by June /August, the Fed will lower rates

I'd recommend not holding cash, invest in real estate, stocks, gold etc

I've been saying this since 2020, we will see hyperinflation.

[Chris W]

we will see hyperinflation.

FYI,

In his book, Cagan defined a hyperinflationary episode as starting in the month that the monthly inflation rate exceeds 50%, and as ending when the monthly inflation rate drops below 50% and stays that way for at least a year.

Economists usually follow Cagan's description that hyperinflation occurs when the monthly inflation rate exceeds 50% (this is equivalent to a yearly rate of 12974.63%

Some countries currently experiencing high inflation in the table below.

Something to think about - how are the residents of those countries are coping with high rates of inflation?

.