Forbes is not known for their socialist or left wing activism, so when they predict a grim economic failure, we should should collectively poo ourselves a little.
National often get given this perception that somehow they are better economic mangers. This list of 12 economic bubble busters helps pop that myth…
1) Interest rates have been at all-time lows for almost a half-decade
2) Property prices have doubled since 2004
3) New Zealand has the world’s third most overvalued property market
4) New Zealand’s mortgage bubble grew by 165% since 2002
5) Nearly half of mortgages have floating interest rates
6) Mortgages account for 60% of banks’ loan portfolios
7) Finance, not agriculture, is New Zealand’s largest industry
8) New Zealand’s banks are exposed to Australia’s bubble
9) Australian and Chinese buyers are inflating the property bubble
10) New Zealand has a household debt problem
11) Government overseas debt has nearly tripled since 2008
12) The New Zealand dollar is overvalued
…having Key shrug these issues off with the same casual contempt he made when a US drone killed a NZer this week just isn’t cutting the mustard any longer, no amount of “I’m casual about that” crap alleviates any of the failings of this Government’s lack of leadership on economic issues.
Labour are good for the economy, National are good for the monopolies. John Key’s tax cutting government has been for the financial elites, in the interests of the financial elites by the financial elites. The fact that our economy is now dominated by the financial sector (worth 28.8% of GDP) is glaring proof of how these neo liberal policies have fostered an environment where the rich just got a hell of a lot wealthier.