. @stevens_phil - yes that will probably come from following the lead from offshore realignment of the financial system. OCD in NZ.
23/07/2014 11:37 a.m.
. @stevens_phil - the quality and complexity option is the only viable option. See: http://t.co/BMvkYmwEZB
23/07/2014 11:26 a.m.
Auto stabiliser not working, did it ever, currency not about trade but money flow chasing & driving asset speculation, real economy buggered
23/07/2014 9:08 a.m.
RT @RenegadeEcon: If a politician - to win power - famously says: "it's the economy stupid" then what makes anyone think that politics are …
22/07/2014 8:10 a.m.
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Loan to Value Ratios

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There was a recent article in Bloomberg, which talked about RBNZ’s recent moves to protect financial stability, particularly in comparison to the Federal Reserve.

New Zealand was not the first to expand the use of prudential controls to blunt debt growth. It is inevitable that targeted interventions create reactions from the targeted rather than spreading the pain around by an interest rate hike, and who cares about a few exporters suffering with higher exchange rates.

The word is the LVR restrictions are being effective, perhaps too effective in areas that are no contributing to the asset price bubble. Collateral damage needs to be avoided or we run the risk of the antibodies triggered by the prudential restrictions impacting good policy – the policy bombs need to be smart.

LVR restrictions in the regions and for new builds make no real sense and should be seeing some policy attention.

tags: loan to value ratios, prudential tools, policy, interest rates, exchange rates
Industrial Real Estate Loan - 25 December 2013 at 4:09 a.m.
That is a very well written blog. Today its hard to get loan from banks due to their security and interest factor.

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