Antidote NZ

Another headline may be: centralised business models contribute to unaffordable housing. This opinion from an ANZ bank economist is ironic, when the banks are the first to drive the centralisation business model, closing down provincal services and choosing Auckland as their main centre for business. Extrapolate that to other businesses and you created unprecedented demand for employee housing and high prices. They could develop another model and spread both their business and employment around NZ.

This is nothing new. When Sydney prices skyrocket, many left to work elsewhere - eg Melbourne (only slightly better than Sydney), Perth and Brisbane. Corporates would be wise to move their Head Offices out of Auckland - eg to Hamilton, Wellington or Christchurch

Bank hold a license to print money via the backing they have from the RBNZ.They are able to leverage off the states monopoly over the creation of fiat money.In some ways this can be positive as it allows almost endless funds for investment in new productive enterprise...but...monetarist deregulation of the 1980s lifted former limitations on the issuance of debt/money by the profit driven banks and so since then speculative housing debt has increased from 10%to over 50% of bank lending.This has distorted the entire economy, and society.Banks, speculators and homeowners have been rewarded, but savers and productive enterprise have suffered.The neo-liberal monetarist FIRE economy encourages debt and speculation but reduces the incentives for productive investment and saving.Nationalise home mortgage and insurance provision.Restore sound regulation of the profit driven banks so they are once again limited restricted to the financing of new and increased productive investments.NZ owned mutual banks and perhaps a revived State Advances Crown Entity could provide all the home financing we require reducing the annual drain on our economy from this sector by at least $12 billion.

NZ agriculture-oriented economic structure is the reason. Theres not enough population to support low cost of goods, not enough economic diversity for startup to thrive, or high-tech manufacturing to keep the talents. Plus the banking and capital system is largely controlled by foreign interests (aussie banks). We kiwis are all slaves of 4 big banks one way or the other. Thats exactly what happens when financial sovereignty is lost. Theres no way out of this.

You dont say. Honestly weve known this for ages.

Yes was sold in the 1980s to the highest bidder. I doubt the young people today are educated on this era. I guess those at the top want it kept hush hush by those in power as there is vested interests overseas making good money off our little nation.aka the Banks...

Bonzo Dog the roads are congested individual use of fossil fueled cars is an inherently inefficient means of transport for most as they do not pay the full external costs of the use of such energy...and then theres climate change.The is actually such a thing as something for nothing...it has been scientifically proven...it is called efficiency.So tell me- since you have had a university education you should be able to answer this question-40 individual cars or one bus carrying the the same people...which uses less energy and costs less overall? S I L E N C E

how to solve the deliberately unsolvable problem of the housing crisis....I see they are grappling with a similar problem in the UK...fancy that, they must have had the same bright ideas we had back in the 80s too!

Bonzo Dog your refusal to answer the simple question-40 individual cars or one bus carrying the the same people...which uses less energy and costs less overall?says it all...It is well established that a small % reduction in peak traffic volume reduces congestion by a much greater %, and wasted time, fuel and money.

No, but it will reduce house prices by at least 30%.If landlords could increase rents they would...they cannot...therefore increased interest costs will be a hit for property owners not tenants.Sorry about that...maybe Sir John Key chairman of the ANZ will come to your rescue...or maybe not.

Dear pacifica- there are certainly road users for whom individual road vehicles make perfect sense...such as delivery vehicles you refer too...and guess what...free public transport will not be used by them, but they will benefit indirectly as the roads will be less congested and any increase in fuel cost will be more than compensated for by less road congestion.EFFICIENCY...system wide, is the free lunch you seem to have trouble comprehending.

Bonzo Dog you have not answered the question...you have just made excuses...evading the simple truth that increased public transport adoption can greatly increase transport system efficiency. Maybe you work for an oil company...

pacifica you make absurd and unsupported assertions regarding percentages.The bulk of congestion is caused by commuter traffic. The greatest gains can be achieved by reducing commuters reliance upon individual vehicle use by providing real and attractive alternatives...unless of course you just want to burn/waste/sell as much fossil fuel as possible?Emergency services, tradespeople and delivery drivers would all greatly appreciate reduced congestion that would result from greater public transport use. So would our foreign exchange accounts, public health statistics, road fatalities and the environment.

The fake money printed from over valued houses and out of control speculation will eventually fall on our feet. Wealth for some results in record debt, money drain to foreign banks and social economic hardship for the country and many hard working people on lower incomes.

Time to hike the interest rates for new loans.. lets say 8%pa, and at least a 50% deposit required just like it was in the 70s... that should quieten things down a bit. And double the incomes of savers.

pacifica the stats do not refute my argument. The bulk of congestion is caused by commuters and would be greatly reduced with the provision of free to use public transport.Out of interest are you a climate change denier and/or fossil fuels sector lobbyist?

in a financial economy, credit creation by banks leads to 1. asset price inflation, lower commodity prices, lower wage levels2. debt service rises as a proportion of business and personal income, outgrowing the ability to repay3. > debt deflationa banks economic equilibrium: debt servicing is at the level of disposable income. As a result, the industrial economy suffers

harder for people to invest in start-ups or growing their own firms.... Cuts both ways some people with a house (or multiple houses) with alot of equity will find if very easy to get the money to start biz.Try borrowing for a biz when you dont have anything to use as security.

Chinese government has been propping up investors, and developers for a long time now. They are drip feeding their own pyramid scheme, and are stimulating GDP at any cost. Most of the new builds are of very poor quality. Culture of greed like here.

Just finished watching ghost towns China. Millions of propertys but no one living in them. Supply out way the demand but still unaffordable?mind blowing. I always thought building more homes would bring house prices down. Not so sure now.