‘Definite end’ to housing boom

The housing market boom will come to a “definite end” next year and the Kiwi dollar may rise back to US81c because of higher interest rates, economists predict. Independent economics group Infometrics’ latest forecast picks the Reserve Bank to raise official interest rates twice, to 8.75 per cent, within the next six months to hold […]

On track for another stockmarket crash

Property developer Olly Newland, who gained and lost a fortune at the time of the 1987 sharemarket bubble and bust, believes New Zealand is about to repeat the experience. “All around I see people repeating the mistakes of the ’80s,” he wrote in the 20th anniversary edition of his book on the crash, Lost Property. […]

Evidence ‘will judge raids’

Prime Minister Helen Clark says the police operation against alleged terrorists operating out of the Urewera training camps will be judged “on the strength of the evidence”, as fresh claims emerge. Among those claims yesterday was a report in the Sunday Star-Times that Miss Clark, Opposition leader John Key and US President George W Bush […]

Rates ‘to increase twice next year’

The housing market appears to be screeching to a halt and inflation is under 2 per cent, but the Reserve Bank will talk tough this week and raise rates twice next year, Westpac Bank economists say. However, they predict that the Reserve Bank will hold official interest rates at 8.25 per cent on Thursday. All […]

Great wall of cash flowing out of China

The only place for Chinese profits to go is overseas, writes John Garnaut in Beijing. This week, a large portion of the world’s most powerful bankers gathered in matching black suits, black socks and dyed black hair to compare notes on the global financial system and respond to the international media. The men included the […]

Key reveals briefing by SIS chief

The Security Intelligence Service has issued a rare public statement to dispel speculation it was involved in this week’s police operation that culminated in the arrest of 17 alleged activists. Yesterday, Prime Minister Helen Clark, who is the minister responsible for the service, refused to comment on National Party claims that the service had briefed […]

Goldman Sachs Escaped Subprime Collapse by Selling Subprime Bonds Short

Phew! That was close. For a moment there, it looked like the collapse of the subprime mortgage market was going to wipe billions off financial earnings for years to come. The bad debts were stacked up like poisoned berries gathered by a poison-crazed squirrel during the housing bubble of 2003-2006. Going bad – fast – […]

The Scourge of Global Inflation is Rising Again

The U.S. dollar is weak, at $1.42 to the Euro;  oil prices are rising, at $86 a barrel;  the gold price is rising, at $756 an ounce.  These are all signs that the risk of global inflation, the scourge of the 1970s, is rising again. In The Daily Telegraph for Monday, October 15th, Ambrose Evans […]

U.S. Fed Bailout Corroding Capitalism and the U.S. Dollar

Welcome to Fed’s “Bail-Out Nation.” America, the Land of the Free, is quickly becoming the “Land of the Freebie,” especially for members of the millionaire corporate elite who make multi-billion dollar mistakes… with someone else’s money. This unfortunate state of affairs is jeopardizing the dollar’s value, as well as its hard-won reserve-currency status. Once upon […]

Commercial Paper Market Could Lose US$500B by Thanksgiving

Bad economic booms tend to produce bad results…like runaway indebtedness and a plummeting currency. Do you happen to know of any large Western economy with these characteristics? Sometimes, the difference between a good boom and a bad boom is very subtle and subjective. A “bad boom,” for example, might simply be a good boom that […]

Japan and China lead flight from the dollar

Japan and China led a record withdrawl of foreign funds from the United States in August, heightening fears of a fresh slide in the dollar and a spike in US bond yields. The US requires $70bn a month in capital inflows to cover its current account deficit Data from the US Treasury showed outflows of […]

NZ signs up to US terrorist database

And what does America get out of this deal? And what do they mean when they say;”There are bound to be some human rights concerns but the public good comes first.”  Our human rights are the public good. Ask the people arrested under the anti-terror law this week how they feel about the infringement on their […]

BNZ foresees soft landing but uncertainties reign

The Bank of New Zealand is forecasting a soft landing for the economy based on easing housing figures, but says there are no guarantees. “These are extraordinarily uncertain times. The domestic economy is being boosted by the stimulatory impact of easing fiscal policy and massive income growth accruing to the dairy sector, while being battered […]

It’s Time For The Banks To Face The Hangman

By Mike Whitney Officials in the Treasury Dept—-working with their colleagues at Citigroup, J.P. Morgan and Bank of America—have concocted a scheme to rescue the banks from their massive losses in mortgage-backed securities. The group is planning to set up a $100 billion emergency fund which will purchase non-performing assets for short term debt. In […]

US stocks: Tumble on Wall Street

US investors saw their stock portfolios scorched today as oil prices rallied amid heightened tensions between Turkey’s government and Kurdish rebels located in northern Iraq. The Dow Jones Industrial Average dropped a hefty 71.29 points (0.51 per cent) to a preliminary close of 13,913.51. The Nasdaq composite slid 16.14 points (0.58 per cent) to 2,763.91 […]

NZ dollar down US1c as investors again run scared

The New Zealand dollar slid 1c against the greenback yesterday as investors again fled risky investments and sent US share prices down sharply. The kiwi closed US1c below Monday’s US76.23c close. ANZ bank said yesterday that despite US dollar weakness, the kiwi was sold off as some risk aversion returned. Credit concerns were reignited in […]

IMF and World Bank gather for talk-fest

I’d love to be a fly on the wall there Winston Churchill, dining out with his accustomed wit, once famously sent back a dessert, telling the waiter that “this pudding has no theme”. Much the same could be said of the IMF/World Bank’s annual meetings in Washington. There is no formal “agenda”, though the big […]

Monster wind farm would be one of world’s biggest

While I greatly applaud wind energy (coming from the flat windy low-lands of Holland) in local sustainable wind farms that accommodate small communities and don’t affect the environment to the point of destruction, I fail to see why these monstrosities have to do with a sustainable society. They don’t replace dirtier forms of energy, they […]

Police move may anger moderates.

Maori academics and politicians have warned that police raids on Maori activists could have the opposite effect and fuel the fire of extremism. Professor Taiarahia Black from Massey University said there was widespread disquiet within Maoridom at the “heavy-handed” police actions. “For people who already feel marginalised, this is going to add fuel to the […]

Intelligence boss named

For a new agency? Didn’t NZ already have a Secret service? Or can we expect more raids on Maori’s Environmentalists and political dissenters? Or is NZ al of a sudden a hot bed of terrorists. A man who worked in intelligence in the Gulf war and Northern Ireland is to head a new national intelligence office […]

Driveby shooting, molotov cocktail attack on house.

Quick, get the terror squad in. A couple and their six-year-old daughter were alseep when their home was targeted in a driveby shooting and a molotov cocktail attack early today. Detective Senior Sergeant Dave de Lange said the couple had been sleeping at the rear of the Hastings house when two shots pierced a front […]

Geneva investor repayments stopped

Geneva Finance has stopped repaying investors, owed more than $112 million, as it struggles to remain afloat. The Auckland-based company plans to ask its 4500 investors to agree to a repayment moratorium of 612 months, as it tries to stabilise its position. International credit rating agency Standard and Poor’s immediately dropped its long-term rating of […]

Foreclosures, Inflation to Wipe Out Credit Debt Burden for US Economy

Let’s see…the Dow rose 77 points on Friday. Oil hit a new record – at above US$85 a barrel. But we always try to look beyond to news to figure out what is going on. Despite the problems in housing, most Americans are feeling pretty fat and sassy. Living standards – at least, by the […]

Why the US Central Bank Wants to Create Inflation, Destroy US Dollar

It’s the end of the world as we know it…and we feel fine! India is booming. China is booming. The latest news from the Middle Kingdom tells us that its trade surplus is rising at a 56% annual rate. Heck, even Argentina is booming. Its economy has been growing about three times faster than the […]

How the battle of Whitstable became a struggle for the soul of seaside resorts

Derek West can justifiably claim to know a thing or two about whelks. For the last 110 years, his family has fished, cooked, shelled and sold the meaty molluscs from a black-painted hut on the windblown quayside at Whitstable. As the 78-year-old grandfather put it while sitting over a bucket deftly twisting dozens of freshly […]

Area sealed off in anti-terror operation

So now we know what those anti terrorist laws were for. Not to  protect us against islamofascists but to suppress dissenting views at home. Maori activists , environmentalists, and political activists. But lets start with a good old dose of divide and conquer. First those scary tattooed warriors to get the pakeha on our side […]

Children’s homes hit by buyout fears

John Key and National anyone ? Concern at private equity’s role in social services Nick Mathiason, business correspondent Sunday October 14, 2007 The Observer The collapse of a private equity-backed care home dealing with sexually abused and autistic children has sparked renewed concern at the advance of financial buyers into British public services. Sedgmoor, owned by […]