Financial Armageddon!!

[AlFa]

Definition: Affordable housing refers to housing units that are affordable by that section of society whose income is below the median household income.

Here's your "affordable" housing. Wanna start forming a queue to live in one?

[Perry]

Just like the co-discussion the Housing Crisis thread, here on PT, I can't escape the notion that all the hoo-hah, finger-pointing and blame-gaming is about a variety of symptoms and misses the fundamental cause of the problem. Might that be because the W'gton woodenheads don't the cause to be discussed, as Eri says / implies?

[JBM]

If NZ houses were unaffordable then why are there so many sales?
There's is no such thing as unaffordable housing.
There's do-gooders running around bleating about house prices being too high and expecting something to be done about it.
Sorry, that's just the way the market works.

Well, of course, one could say as the banks will lend 90%+ of the value of Res Property and the interest payments on the loan are less than renting a similar house thats affordable.. well till Interest rates head higher then it all falls over..then many more young kiwis leave NZ than stay who's going to rent your million dollar rental ???


I've been doing the same seasonal fishing job for 20yrs+ which sells seafood to be exported to Aussie on 12% of the turnover
now 15yrs ago I signed up to buy my first house locally was going cost me 3x my yearly income .... today its 10x for the same basic property and you think its just going to keep increasing like it has ?? no-way ..

[LifeBroker]

Image appears to be from Eastern Europe. Looks like the classic communist era blocks.

Comparing population, there are more people homeless in NZ, than in Romania for instance. https://en.wikipedia.org/wiki/List_o...ess_population

The NZ dream is broken.

Here's your "affordable" housing. Wanna start forming a queue to live in one?

[eri]

google image search seems to think it is хрущевки пермь

khrushchev city in the perm region of russia?

closer to kazakstan than moscow, on the edge of siberia

[eri]

of course

if you want to live somewhere fashionable

you either need to be a millionaire

or audition, with excellent references, for a very; old, cold and small space

not even "fairydust" can change that

https://www.stuff.co.nz/life-style/homed/living/113672144/tiny-living-our-life-in-paris-in-21-square-metres

[AlFa]

google image search seems to think it is хрущевки пермь

khrushchev city in the perm region of russia?

closer to kazakstan than moscow, on the edge of siberia

Khrushchev is not a city. It was a leader of USSR. During his term this type of apartment buildings were developed and built. It was cheap to build but quality was atrocious. One's small argument with wife could be heard by entire building or even block of buildings. No parking, limited play space for kids, close to no green space. Yet these khrushchevka's were able to house millions of people so served it's purpose to the full. Problem was/still is these buildings were designed to last 25 years but most are over 60 years old now.

[Perry]

Moderator Note

This topic seems to be drifting a bit too far towards the Housing Crisis thread, here on PT, so please post housing crisis matters there.

[AlFa]

Image appears to be from Eastern Europe. Looks like the classic communist era blocks.

Comparing population, there are more people homeless in NZ, than in Romania for instance. https://en.wikipedia.org/wiki/List_o...ess_population

The NZ dream is broken.

1. There was NEVER "communist era". (I recommend you) Read it up...

[McDuck]

Moderator Note

This topic seems to be drifting a bit too far towards the Housing Crisis thread, here on PT, so please post housing crisis matters there.

OK. Good point.

The crisis of money.

Specifically the way money works to enable our modern way of living to function smoothly.

The flow of the proverbial green stuff.

Well, to me, the main problem is one of ticket clipping.
And the fact that each time money flows into a bank or financial system, it gets clipped.

Remember, one of the main attributes of money is as "a store of value".

If you think of it like those old silver coins they used to use back in the days when Sir Isaac Newton was protecting the currency.
Coins were clipped by getting a sharp knife and slicing a very thin strip from the edge.

By the end of the month, a barkeeper would have a cup full of shavings. enough to mint a new coin.
After a while, many coins in circulation were very small.

The currency got so bad that severe penalties were introduced.
And finally a stop was found, those little ridges around the edges of coins.

What we see here is a perfectly normal human tendency.
Clipping.
The same is happening with our money still.
But since Nixon debased currency, and everything is just numbers on electronic ledger books, it's very difficult to notice.

[LifeBroker]

That's really interesting McDuck, the crisis of money (creation) and wealth is real. Since Nixon debased the currency, and also since the worlds central banks introduced QE, I believe the problems only got bigger. And there is more at stake.

It will be interesting to watch if USA will be going back to the gold standard.

OK. Good point.

The crisis of money.

Specifically the way money works to enable our modern way of living to function smoothly.

The flow of the proverbial green stuff.

Well, to me, the main problem is one of ticket clipping.
And the fact that each time money flows into a bank or financial system, it gets clipped.

Remember, one of the main attributes of money is as "a store of value".

If you think of it like those old silver coins they used to use back in the days when Sir Isaac Newton was protecting the currency.
Coins were clipped by getting a sharp knife and slicing a very thin strip from the edge.

By the end of the month, a barkeeper would have a cup full of shavings. enough to mint a new coin.
After a while, many coins in circulation were very small.

The currency got so bad that severe penalties were introduced.
And finally a stop was found, those little ridges around the edges of coins.

What we see here is a perfectly normal human tendency.
Clipping.
The same is happening with our money still.
But since Nixon debased currency, and everything is just numbers on electronic ledger books, it's very difficult to notice.

[JBM]

WTF is going on

What I'm finding very disturbing is how back when we had the first GFC property slow-down and seen median rates drop to record LOWs interest rates all the Govt. / Central bankers were stating it was used as last resort emergency that would be reversed in short order once economic growth returned... just watch out 7% rates coming 2018 headlines from the RBNZ etc

Now over the last decade we have had HUGE growth esp property wise locally I see a section that was advertised for $115k early 2016 now only 3+ years later at $315k and a so called sharp BUY ???? yet over this time of record growth rates have just gone down ... and now I hear we need lower rates to help a soft market ?... so basically cheap money has fueled the growth and not real economic growth but consumer spending... and we need even more to spur continued spending

[Bob Kane]

That's what everyone thought 10 years ago.
But those days are gone forever.
It's no inflation and low interest rates here on in.

[Davo36]

What I'm finding very disturbing is how back when we had the first GFC property slow-down and seen median rates drop to record LOWs interest rates all the Govt. / Central bankers were stating it was used as last resort emergency that would be reversed in short order once economic growth returned... just watch out 7% rates coming 2018 headlines from the RBNZ etc

Now over the last decade we have had HUGE growth esp property wise locally I see a section that was advertised for $115k early 2016 now only 3+ years later at $315k and a so called sharp BUY ???? yet over this time of record growth rates have just gone down ... and now I hear we need lower rates to help a soft market ?... so basically cheap money has fueled the growth and not real economic growth but consumer spending... and we need even more to spur continued spending

And this is the bubble.

Greenspan did this in the US. They had the tech crash, he lowered interest rates and kicked off the property bubble.

And now it's just being inflated more and more and more, all around the world.

[McDuck]

And this is the bubble.

Greenspan did this in the US. They had the tech crash, he lowered interest rates and kicked off the property bubble.

And now it's just being inflated more and more and more, all around the world.

It is a funny equation, when you think of it.

Especially the way houses play a part in it all.

Everyone with a house is happy because they think they are sitting on a good store of value.

The house is acting like a pile of gold did, in the old times.

But what if you really think of it.

The scam becomes clear.

The value of a house is a total lie.

Think of it simply like this.

Say there is one person who has a million dollars.

And there are only ten houses in the whole world.

Each house is really worth 100 thousand.

Never mind the claptrap, nonsense.

In pure ratio terms, this thing A has a ratio of 10:1 with thing B.

Except in funny logic, if the person with the Million dollars (Dr Evil hopefully) pays 1 Million dollars for the first house, everyone else gets to value theirs at 1 Million.

Beeeeeep.

Wrong.