Nats lay the ground for housing bust – Labour Party

By   /   May 16, 2017  /   2 Comments

Goldman Sachs’ warning that New Zealand has the developed world’s most over-priced housing market, with a 40 per cent chance of a bust within two years, shows the consequences of National’s nine years of housing neglect, says Labour Housing spokesperson Phil Twyford.

“If the housing bubble pops and causes economic chaos, the blame will sit squarely with Bill English and National.

“National has wasted nine years while the housing bubble has grown and reached the point where it could pop any moment.

“A housing bust would see a slow-down in house construction. When only half the houses Auckland need are being built at the moment, a slow-down would be a disaster. The resulting job losses and reduction in household confidence would ripple through the wider economy.

“A housing bust could be just as bad as skyrocketing prices. We need stable house prices and a massive increase in the construction of starter homes families can afford to buy.

“We urgently need fresh thinking. Labour’s housing package will stabilise house prices, avoid the boom-bust cycle, increase the number of houses being built, and provide stability to the sector,” says Phil Twyford.

 

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2 Comments

  1. CLEANGREEN says:

    “Goldman Sachs’ warning that New Zealand has the developed world’s most over-priced housing market, with a 40 per cent chance of a bust within two years”

    So true here as the housing pricing is out of control now, there must be a correction and what a bloody mess it will be.

    Goldman Sachs bankrolled the crazy property ladder as they did to Greece so we know what happened there.

    Labour will do the right thing for us as will the Z First and the other support partners in the in-coming Government.

    • At the risk of sounding like a broken record, a broken record,a broken record, a broken record, a broken record…

      Let’s remember that Goldman Sachs has now populated the White House with several Trump appointees.


      High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our T&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights.
      https://www.ft.com/content/84d0ac4c-def9-11e6-9d7c-be108f1c1dce

      Mr Nagy, 29, was among a group of about two dozen demonstrators camped on the south-east corner of Goldman’s lower Manhattan headquarters on Thursday morning. Some waved “Government Sachs” banners and heckled workers; others wore monster-green bobble hats, mocking Donald Trump’s campaign pledge to “drain the swamp”.

      All were there to protest a long list of appointments of Goldman-linked people to senior positions on the president-elect’s team. Mr Nagy, a housing organiser, said he worried that under the new president, the grip of Wall Street on Washington could be stronger than ever, at a time when Goldman is enjoying a surge in profits.

      “The financialisation of this country is ruining the economy, it’s destroying jobs and it’s concentrating wealth at the very top of our society,” he said. “Trump went from talking about Goldman Sachs and Wall Street having heavy influence on the government, to them literally running it.”

      ref: https://www.ft.com/content/84d0ac4c-def9-11e6-9d7c-be108f1c1dce

      Like “S.P.E.C.T.R.E.” in the James Bond novels, Wall Street’s tentacles reach through every aspect of Western political and economic institutions.