Once again I made the mistake of reading the State Funded Propaganda Facilitators.

I see their latest series of bluuuurgh is about the impact of the new lending laws and codes.  It appears they are attempting to lay the blame on the banks.  Well guess what, the banks have spent years fighting the imposition of the laws that interfere with how they behave as privately funded intermediaries.  The new lending laws and codes are the Brainchild of Fatboy-R (Robertson) and the Clown Circus running this place, being yet another attempt to ‘slow’ the property market.  Well this one won’t slow it, however it does have the potential to simply stop it dead.

Over the last 4 years the Reserve Bank and this Gummint have tried any number of ways to slow this market and in spite of there being well documented successful tools to achieve that end, as our Munter of Finance has a politics degree he has used this particular expertise to use every one of the tools many other countries have tried that have failed or are failing.  As an aside it seems a particular skill of this labour party (small case deliberate) that their Arrogant approach “…that we will do it differently so it will work”, is perhaps their only policy success (ie consistent failure).

Just a quick re-cap of what haven’t worked:

  • Introducing Ring-fencing
  • Introducing Bright-line period
  • Repeatedly increasing the bright-line cut offs.
  • Removing legally deductible Interest expenses and increasing the bright-line cut off (turning the UK rental market into (bigger) slums)
  • Instructing Banks to limit private debt lending as a component of their prudential supervision regimes
  • Instructing Banks to change the Debt to Equity ratios for certain lending types 
  • Increasing government spending to stimulate the economy at a time where Interest Rates were falling and stimulatory market forces were ‘in-play’
  • Printing money to stimulate the economy at a time where Interest Rates were falling and stimulatory market forces were ‘in-play’
  • Introducing regulations around Debt Serving to Income ratios 

So what have the banks done? Other than what the rest of the sheep in NZ have done and just buckled under and followed along with Government policy.  SO how is the banks fault?

The only truly idiot thing the Clown Circus  did not do is ‘staple’ losses to individual rental properties, but they have nearly 2 years to slip that particular fuck up in.   

And therein lies my greatest fear for NZ.  Two more years of no tourism, limited and reducing sales of primary produce to overseas markets, as the economy tanks and interest rates increase the NZ dollar will strengthen and receipts from foreign trade will fall further. Increased cost of getting our produce to market as we, NZ lobby to increase penalties for carbon miles on imported products – yep work that one out when we are the further-est from just about everywhere.

Sorry if this sounds depressing but you need to get your friends to be emailing their Labour constituent MP and list MP daily and hammering them on their mismanagement of NZ.  

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