• Login:
Welcome, Register Here
follow PropertyTalk on facebook follow PropertyTalk on twitter Newsletter follow PropertyTalk on LinkedIn follow PropertyTalk on facebook
Page 1 of 3 1 2 3 LastLast
Results 1 to 10 of 27
  1. #1
    Join Date
    May 2004
    Location
    Bay Of Plenty, NZ
    Posts
    3,604

    Default Investors fear credit crunch

    Monday, 27 October 2008

    Property investors are predicting the end for finance companies.

    Hundreds gathered in Rotorua at the weekend for the Property Investors' Federation annual conference as global markets continued their rocky ride.

    Federation president Martin Evans said investors were impressed by news the Westpac and ANZ banks had taken up a multibillion-dollar Reserve Bank offer to purchase residential mortgage-backed securities if the banks ran short of money.

    Other banks were expected to take up the Reserve Bank offer.

    Economists at the conference predicted banks would be the last lenders left standing as credit conditions tightened. "Money won't be so easy to get you will have to put a better case to the bank to get your money," Evans said.

    "And they are saying there won't be any non-bank lenders soon, it will be only the banks that will be lending money."

    Investors at the conference said they wanted to have more control over their investments, rather than buying in to property ventures run by middle-men.

    "A few people got burnt by that," Evans said.

    "People fairly realistically realise that there is going to be a downturn in the economy and we're going to go through bad times. But the bankers were saying New Zealand will fare well."

    Economists at the conference predicted the official cash rate would fall to 4.75 per cent, but Evans was sceptical.

    "I don't know how they can predict that. Last month they were saying petrol would never drop below $2 again, weren't they?" he said.

    Reserve Bank Governor Alan Bollard last week cut the official cash rate by 100 basis points to 6.5%.

    Massey University banking expert David Tripe said prediction that banks would soon be the only lenders might not be borne out.

    "One of the things about the (Reserve Bank) deposit guarantee scheme is that it actually chucks a lifeline at a number of other participants in the market," he said.
    http://www.stuff.co.nz/4740205a13.html
    Last edited by muppet; 27-10-2008 at 09:47 AM. Reason: added link
    Patience is a virtue.

  2. #2
    Join Date
    Aug 2003
    Posts
    7,638

    Default

    Good hear hundreds have turned out for the conference - if it were not for a sick dog we'd have been there.

    No surprises re the predictions of non-bank lenders going to ground we have been witnessing this for a few months now with seemingly strong lenders freezing assets etc.

    As the saying goes - "the deeper the recession the stronger the recovery" - here's hoping this time next year we are seeing some turnaround.

    Cheers,

    Donna
    PropertyTalk Blog - property articles

    BusinessBlogs - the best business articles are found here



  3. #3
    Join Date
    Jun 2005
    Location
    auckland New Zealand
    Posts
    5,236

    Default

    What a strange article. That was so entirely not what the conference was about at all??
    Typical journalism. The very name of the conference was "Steaming Ahead" and the demise of finance companies wasn't even monetioned :-)

    (Just over 220 attendees)

  4. #4
    Join Date
    May 2007
    Location
    Chch
    Posts
    773

    Default

    Yes and what is this meant to mean:

    'Federation president Martin Evans said investors were impressed by news the Westpac and ANZ banks had taken up a multibillion-dollar Reserve Bank offer to purchase residential mortgage-backed securities if the banks ran short of money.'

    Why were investors impressed????

  5. #5
    Join Date
    Jun 2005
    Location
    auckland New Zealand
    Posts
    5,236

    Default

    Like i said it didn't happen, just silly reporting.
    Martin opened the conference, spoke for about 60 seconds, that was it :-).

  6. #6
    Join Date
    Aug 2003
    Posts
    7,638

    Default

    Geez it makes you wonder about everything you read if reporting on actual events can be that shoddy and inaccurate!

    Cheers,

    Donna

    umm what did happen? Only good news please I have to say I am fed up with 'doom and gloom' - probably because it is getting towards the end of what has been a very challenging year.
    PropertyTalk Blog - property articles

    BusinessBlogs - the best business articles are found here



  7. #7
    Join Date
    Oct 2008
    Location
    Auckland/Melbourne/ whereever the money is
    Posts
    1,380

    Default

    Quote Originally Posted by donna View Post
    Geez it makes you wonder about everything you read if reporting on actual events can be that shoddy and inaccurate!

    Cheers,

    Donna
    I'm surprised you are surprised !
    Reporters are often lazy, manipulative & put their own spin on things to fit in with the crowd mentality or to create a "more interesting story".
    (some might even go so far as to say they write what the big boys want the public to believe, not what is actually happening,.... but I wouldn't be one of those)

    That's why I put more credence in the informed discussions about the articles on some of these blog sites, than I do in the articles themselves.
    That belief is strengthened when I see comments like those above from those I consider experienced enough to know what actually happened.

    Long live blogging !

  8. #8

    Default

    Quote Originally Posted by ream View Post
    Yes and what is this meant to mean:

    'Federation president Martin Evans said investors were impressed by news the Westpac and ANZ banks had taken up a multibillion-dollar Reserve Bank offer to purchase residential mortgage-backed securities if the banks ran short of money.'

    Why were investors impressed????
    I second that. Why is that "impressive"?

    Someone enthusiastically told me about John Key's suggestion for a scheme that offering support payments and loans to people who lose their jobs. It will help people get back into the workforce and be aimed at middle-income earners who have mortgage commitments but no savings.

    Isn't this getting a little absurd? The Nats want to bail out those who probably shouldn't have a mortgage in the first place, while those who are renting or own their home have to pick up the tax bill.

    By this time next year, it looks like the vast majority of NZers will be eligible for some kind of welfare.

    I'm glad I'm not paying for it.

  9. #9
    Join Date
    Sep 2003
    Location
    High up above and deep down under
    Posts
    10,915

    Default

    Tanmedia said:
    By this time next year, it looks like the vast majority of NZers will be eligible for some kind of welfare.
    But they already are now.
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

  10. #10

    Default

    Quote Originally Posted by muppet View Post
    Tanmedia said:


    But they already are now.
    I guess you're right. Pretty amazing that they're thinking about subsidizing mortgagees because they're incapable of providing for themselves.


 

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Replies: 2
    Last Post: 01-11-2009, 03:44 PM
  2. Consumers fear credit, job loss likely
    By Marc in forum Regions News (Oz)
    Replies: 0
    Last Post: 20-03-2009, 02:04 PM
  3. Replies: 0
    Last Post: 23-02-2009, 08:34 AM
  4. 2008 - the year of the 'credit crunch' - video - must watch
    By donna in forum Finance, legal and tax (NZ)
    Replies: 1
    Last Post: 19-12-2008, 07:26 PM
  5. Foreclosures turning credit crunch into boom for some
    By BusyLizzy in forum Property Investment (USA)
    Replies: 2
    Last Post: 18-11-2008, 09:27 PM
  6. Developer cashes up as credit crunch bites
    By essence in forum Regions News (NZ)
    Replies: 0
    Last Post: 12-10-2008, 08:44 AM
  7. Credit crunch fallout not over yet - Buffett
    By 67910241 in forum World in General
    Replies: 1
    Last Post: 20-05-2008, 04:46 PM
  8. Beat the Credit Crunch
    By Heg in forum Forum Funnies
    Replies: 2
    Last Post: 02-04-2008, 04:53 PM
  9. Families facing credit crunch
    By muppet in forum Property Investment (Oz)
    Replies: 0
    Last Post: 01-01-2008, 08:14 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •