Noted with interest Cullen's comments on RNZ on Sunday.
"Finance Minister Michael Cullen says he remains worried about the strength of the housing market and consumer spending.
He says if the economy does not slow gradually, there is a risk the property market could collapse, leaving some people owing more their properties are worth."
I am amused (no, aghast) at the way in which Cullen refers to the economy as some esoteric entity he has no control over. The OECD last week made it clear - cutting government spending is the biggest key to reducing inflation. That's your responsibility Cullen!
This week's interest rate increase will have bugger all impact except to make our economy worse off. Those who rent and have fixed mortgages willl be unaffected, but imported consumer goods will be even cheaper.
And our businesses will be worse off - are you proud of our high employment rate? Enjoy it while you can.
And once the economy is in serious decline, the housing market will join it.
There is too much celebrating of this fact within this forum for my liking as seasoned investors look at the opportunities that will arise.
There are bigger issues at stake. The immediate decline in the economy could become a lot more serious if something urgent is not done about the inherent weakness in it (such as our low productivity, balance of payments, loss of our best and brightest, etc).
Cullen has the Nero about him - fiddling while Rome burns.
"Finance Minister Michael Cullen says he remains worried about the strength of the housing market and consumer spending.
He says if the economy does not slow gradually, there is a risk the property market could collapse, leaving some people owing more their properties are worth."
I am amused (no, aghast) at the way in which Cullen refers to the economy as some esoteric entity he has no control over. The OECD last week made it clear - cutting government spending is the biggest key to reducing inflation. That's your responsibility Cullen!
This week's interest rate increase will have bugger all impact except to make our economy worse off. Those who rent and have fixed mortgages willl be unaffected, but imported consumer goods will be even cheaper.
And our businesses will be worse off - are you proud of our high employment rate? Enjoy it while you can.
And once the economy is in serious decline, the housing market will join it.
There is too much celebrating of this fact within this forum for my liking as seasoned investors look at the opportunities that will arise.
There are bigger issues at stake. The immediate decline in the economy could become a lot more serious if something urgent is not done about the inherent weakness in it (such as our low productivity, balance of payments, loss of our best and brightest, etc).
Cullen has the Nero about him - fiddling while Rome burns.
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