Comments on: New Zealand Dollar Gaps Through 73 http://cryptogon.com/?p=612 news - analysis - conspiracies Tue, 09 Feb 2010 15:25:23 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Kevin http://cryptogon.com/?p=612&cpage=1#comment-7081 Kevin Wed, 18 Apr 2007 01:42:18 +0000 http://cryptogon.com/?p=612#comment-7081 I've been working on an article about this called "New Zealand: Where is the Outrage?" I just posted it: http://cryptogon.com/?p=628 I’ve been working on an article about this called “New Zealand: Where is the Outrage?” I just posted it:

http://cryptogon.com/?p=628

]]> By: tochigi http://cryptogon.com/?p=612&cpage=1#comment-7077 tochigi Wed, 18 Apr 2007 01:00:22 +0000 http://cryptogon.com/?p=612#comment-7077 After five years solid of this carry trade being TOTALLY ignored by the NZ press, last year they started characterising it as "Japanese housewives buying NZ dollar bonds for the high interest rates compared with Japanese bank rates". The Japanese retail market (referred to as Uridashi bonds in the NZ press) is a drop in the bucket compared with the massive hedge funds borrowing yen and then buying NZ dollar instruments. People in NZ are deliberately being kept in the dark about what is behind the out of control NZ dollar and NZ real estate bubble. I wonder why? When this unwinds (when, not if), NZ will not be able to service its current account deficit. In other words, the cost of imports will sky-rocket and household budgets will melt down under the weight of rising prices and high debt levels. Which means panic selling of ridiculously overpriced real estate. Bingo. Game Over. After five years solid of this carry trade being TOTALLY ignored by the NZ press, last year they started characterising it as “Japanese housewives buying NZ dollar bonds for the high interest rates compared with Japanese bank rates”. The Japanese retail market (referred to as Uridashi bonds in the NZ press) is a drop in the bucket compared with the massive hedge funds borrowing yen and then buying NZ dollar instruments.

People in NZ are deliberately being kept in the dark about what is behind the out of control NZ dollar and NZ real estate bubble. I wonder why?

When this unwinds (when, not if), NZ will not be able to service its current account deficit. In other words, the cost of imports will sky-rocket and household budgets will melt down under the weight of rising prices and high debt levels. Which means panic selling of ridiculously overpriced real estate. Bingo. Game Over.

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