So we don't need to do anything but wait for more helicopter money,sounds great.We can all go on holiday:)
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https://www.stuff.co.nz/business/120...b-losses-mount
The aftermath is going to be absolutely horrendous post the lockdown - whenever that may be.
markets just being propped up with money printing otherwise we would probably be 60% down already , but still might get there in time.
On that dollar cost averaging strategy i should have said i like doing that on the way up not on the way down. if you do it on the way down you are accepting a lower future return for less risk.
invest at $8
invest at $7
invest at $6
invest at $5
average $6.50 get the jist
current price $2 you have a long way to get your money back
dollar cost averaging way better on the way up
Massive S+#t about to hit the fan.I'm picking 3-400,000 unemployed.Yuck.
& Robinson suggesting a rent freeze. GHU.
When there is no rent coming in what are landlords going to do?
Property market will hit a big wall.
And then what happens to banks liquidity core funding ratio?
https://www.rbnz.govt.nz/regulation-...-funding-ratio
At least there is liquidity in the share market.
FWIW a rent freeze doesn't mean not paying rent, it means not increasing it. Landlords will still get their rent (mostly).
Perhaps this thread could turn its mind to what the response could\should look like from the govt.
My pick is that they will write off some\all student debt for residents and offer some sort of abatement for returning kiwis as well:
A) Grant Robertson has some form in the area of tackling student debt, so it would be consistent with past behaviour.
B) It would redirect 12c in the dollar (after the first $20k income) of debt repayments from the govt to the wider economy for those still able to work.
C) Yes it's a $15b debt asset, so it would be a big write off, but much of that is from students now overseas who may not come back so you wouldn't write all of it off.
D) It would remove a sizeable impediment to getting a mortgage or a small business loan for many.
E) It could stimulate a net migration inflow of returning kiwis, particularly if the global economy is munted, which would be a positive for growth.
F) Some will say "Ta very much", decide there's no jobs out there, claim the dole and go off backpacking around the country for a year, but as long as they're supporting domestic tourism and maybe doing some fruit picking or other odd jobs etc along the way I don't see that as necessarily a bad thing.
Anyone else like to make a prediction.