Reasons to worry about another GFC ... and where NZ stands in the global economic order

The world economy is cyclical and you should always remember that shocks will occur. The next one wont be far away and the best thing to do right now is pay off debt and save and prepare the best you can

good article with a cross section of valid views.

Yup. Sell your 2nd property, pay down your main propertys mortgage and, assuming anything is left over, pay of the HP on your car and all those other goodies youve treated yourself to thinking the party would never end. Parties always end - some nicely, others with the cops busting in. Best to have left after having enjoyed yourself and before the things that caused the cops to bust in start happening.

Everything is fine, until its not. Many Romans probably thought âoh just another barbarian army, yawnâ.Remember the smartest people are in the finance firms gaming the system. The regulators are not in the same league.Hope for the best, prepare for the worst.

Maybe its time for a new economic model of growth.

Theres no new way to have a crisis or go broke. Its too much debt, every single time. And there is way more debt out there than there was in the GFC. Weve learnt absolutely nothing from the last crisis. Im not saying another crisis is about to happen right now, but it will happen again. And when it does, it will be catastrophic for so many people.

Ive done that, but now worry that it is my savings that will be used to bail out all that debt. How do I protect myself from this? Because recent history shows those debt get the rewards.

You will find out the hard way my friend!

We should be worried. The good thing is our bubble will probably burst and come down to reasonable levels. The downside is that the credit crunch will probably wipe out so many businesses that people wont be able to get a mortgage for newly-affordable houses - because theyre out of a job.

The problem we have is that the same people who created the last GFC are still there with their same hands in the till. The enquiry into the banks and financial sector in Aussie proves that with several banks raising mortgage interest rates last week to cover anticipated fines for ripping people off.

...or dont add that worry to your life at all.

He left most popular, top of his game, shoe in for another term and he decided when to leave. He is still popular, still top of his game and respected world wide. So yes he knew when to leave.

National had a global GFC, plus two financially crippling earthquakes to contend with. They had to restrict spending, and borrow money, to pull the country through. And they were applauded by the rest of the world for the way they handled it all.Then they got things back on track and in a position to start reinvesting again, and the current bunch got in and have started undoing all Nationals astute work.

Better to have a crash than not. When low interest rates begin to rise and QE is tapered off there will be a point (about 2.5% Fed cash rate) where the DJI will collapse in response and that will preclude any recovery in the Western world, ever.The alternative is perpetual low interest rates and QE which will exacerbate the mess we have now with ever increasing asset bubbles and corrections and increasing numbers of people made destitute. And st some stage those people will either uprise or be exterminated.So a crash might not be desirable for the comfortable, but it is a chance to rebuild our political and economic systems, lock up the criminal banksters and politicians responsible and recalibrate our standard of living to a sustainable path.Our main concern at this stage should be putting in place emergency provisions to ensure people are homed and fed and order is maintained as once she collapses all hell will break loose.People have no idea that modern economies dictate all supply chains will cease when bank credit dries up. Food supplies will disappear within three days and then you will fend for yourself, unless preparations are made now.

I never said the sky is falling I said its a great opportunity, perhaps the only one we will ever have.Best not to screw it up again eh.

What a nonsense to suggest that China saved our bacon during the GFC!! National under the genius of Shonkey and Bill English saved us, didnt they?? At least thats what were forever being told so it must be 1. Politicians never lie!

Debt clock at this moment shows over 124 billion for us and rising. That cant be good if these are the good times?

GypsyguyNational actually increased spending during the GFC, they went into deficit which helped to keep the economy going. A government deficit equals a private sector surplus, it gives us more money to spend and pay down our own debts which is easily shown in sectoral balance charts for the time. Private sector debt levels declined during the GFC.

Capitalism relies on perpetual growth for expansion, but that means increasing debt too. One day, the debt can no longer be serviced. Were there.

Worries worries worries!!! Every time I read or hear something from the media these days its worrying about every single topic it can. I think its time to look at a positive and harden up!!