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NZ fallout of the treasury bubble

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  • NZ fallout of the treasury bubble

    From: http://www.youtube.com/watch?v=UGYo5fDGbEU
    Free business resources - www.BusinessBlogsHub.com

  • #2
    I am firmly of the belief that "Joe Public" who are locking themselves into low short term rates (6 mth, 1 year rates) are going to get stung badly when their term rolls over.

    I would even go so far as say, that by mid-2010 we could potentially see 4 & 5 year rates back into double digits.

    Imagine buying a property on 5.95% interest rates and then a year later having to look at 7%+ even on 1 & 2 year rates. That wouldn't help cashflows at all.

    We're all going to hear the nay-sayers saying "Oh, you're a prophet of doom". Am I? Or am I a realist?
    Patience is a virtue.


    • #3
      I just need it to hold on a few more months to refix the bulk of my mortgages! And yes Essence, I agree that is a significant possibility.
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      • #4
        Do you think Bernard Hickey uses a cookie cutter for a template when shaving?
        Last edited by Munga; 03-03-2009, 05:50 PM.


        • #5
          Dean talked about this on his Massive Action blog today too.

          My head is starting to ache thinking up every possible scenario that could happen that could affect me directly and what stategy I would use should it happen.

          I (naively it seems) had hoped that there would be some kind of hinting from RBNZ and economists before rates went up - giving me a chance to lock in for the 5 year period. I mean, why lock in 5 yrs now if you can wait 6-12 months, then lock in 5 years. This is starting to feel a little like 'Russian Roulette' to me the longer I wait.