It doesn’t seem to occur to the IMF that we maybe in a “new normal” market. What might have made sense 10 years ago might not make sense today.
Over the past few years we have seen bail-outs around the world of unprecedented scale, theft if peoples savings, collapse of century old business icons, the imprisoning of company directors on a grand scale, shifts of power and money undreamt of decade ago and recessions not before experienced in living memory.
Maybe we have to get used to the world never being the same again and all the rules are now different.
On the other hand…..?
IMF warns about high NZ house prices
Rising house prices in New Zealand are a growing concern, according to the International Monetary Fund.
The IMF repeated concerns that house prices in New Zealand were rising from “already elevated” levels.
That could lead to a rise in households borrowing more and spending on the back of rising house values.
There was also the potential to “increase the risk of an abrupt price correction”, the IMF says in a final country report issued today.
The report said the New Zealand economy was growing at a rate “below trend”, in part reflecting the effects of the recent drought. The economy was expected to expand 2.5 per cent this year.
An increase in building activity was being offset by government belt-tightening and the headwinds from a high dollar and the recent severe drought.
Inflation pressures remained subdued, the report said.
New Zealand’s external debt was high by international standards.
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