Thank you Alan Bollard

By Steve Biddle, in , posted: 24-Oct-2008 08:29

It must have been tough over the past few years putting up with the critisicm but in light of the recent turmoil you've redeemed yourself. What has happened certainly didn't surprise me and is exactly what I've been predicting for two years. I'm guessing it's come as no real surprise to you either.
 
Carrying higher interest rates over the past few years has left NZ in a far stronger position than we would have been otherwise, and caused a smaller boom in property than what we potentially would have occured if interest rates had been lower. As a result our slump isn't going to be anywhere near as bad as other countries and out credit market won't fare as badly.

You endured the critisicm but persisted with your plan. That deserves top marks.




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Comment by grant_k, on 27-Oct-2008 10:22

Carrying higher interest rates over the past few years has left NZ in a far stronger position than we would have been otherwise...

That is highly questionable.  Ask any of NZ's exporters and I very much doubt that they would agree with you.  High interest rates have caused a lot of Uridashi and Euro-Kiwi bonds to be issued which have pushed up our exchange rates drastically for the past few years.  In the past few weeks, a lot of that money has been exiting which is why the NZ:US rate has fallen to about 0.56 from 0.70+ not so longer ago.  Had our interest rates been lower, exchange rates would quite possibly have remained a lot lower than they have which would have enabled some manufacturers such as F&P Appliances to remain based in NZ.  Now that they have moved to Thailand, they are unlikely to ever return, so permanent damage has been done by the high interest rate policy.

...and caused a smaller boom in property than what we potentially would have occured if interest rates had been lower.

Conversely, as you say, the policy has moderated NZ's housing bubble, but that is the only good point I can think of, other than paying depositors very high rates on their savings for the past few years.

As a result our slump isn't going to be anywhere near as bad as other countries and out credit market won't fare as badly.

I seriously hope that you are right with this prediction, but TBH, the jury is still very much out on this one.


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Steve Biddle
Wellington
New Zealand


I'm an engineer who loves building solutions to solve problems.


I also love sharing my views and analysis of the tech world on this blog, along with the odd story about aviation and the travel industry.

My interests and skillset include:

*VoIP (Voice over IP). I work with various brands of hardware and PBX's on a daily basis
  -Asterisk (incl PiaF, FreePBX, Elastix)
  -Polycom
  -Cisco
  -Linksys
  -Patton
  -Zyxel
  -Snom
  -Sangoma
  -Audiocodes

*Telecommunications/Broadband
  -xDSL deployments
  -WiMAX
  -GSM/WCDMA
  -WiFi

*Structured cabling
  -Home/office cabling
  -Phone & Data

*Computer networking
  -Mikrotik hardware
  -WAN/LAN solutions

*Wireless solutions
  -Motel/Hotel hotspot deployments
  -Outdoor wireless deployments, both small and large scale
  -Temporary wireless deployments
   
*CCTV solutions
  -Analogue and IP

I'm an #avgeek who loves to travel the world (preferably in seat 1A) and stay in nice hotels.


+My views do no represent my employer. I'm sure they'll be happy to give their own if you ask them.


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