‘Definite end’ to housing boom

The housing market boom will come to a “definite end” next year and the Kiwi dollar may rise back to US81c because of higher interest rates, economists predict. Independent economics group Infometrics’ latest forecast picks the Reserve Bank to raise official interest rates twice, to 8.75 per cent, within the next six months to hold […]

Evidence ‘will judge raids’

Prime Minister Helen Clark says the police operation against alleged terrorists operating out of the Urewera training camps will be judged “on the strength of the evidence”, as fresh claims emerge. Among those claims yesterday was a report in the Sunday Star-Times that Miss Clark, Opposition leader John Key and US President George W Bush […]

Key reveals briefing by SIS chief

The Security Intelligence Service has issued a rare public statement to dispel speculation it was involved in this week’s police operation that culminated in the arrest of 17 alleged activists. Yesterday, Prime Minister Helen Clark, who is the minister responsible for the service, refused to comment on National Party claims that the service had briefed […]

Goldman Sachs Escaped Subprime Collapse by Selling Subprime Bonds Short

Phew! That was close. For a moment there, it looked like the collapse of the subprime mortgage market was going to wipe billions off financial earnings for years to come. The bad debts were stacked up like poisoned berries gathered by a poison-crazed squirrel during the housing bubble of 2003-2006. Going bad – fast – […]

U.S. Fed Bailout Corroding Capitalism and the U.S. Dollar

Welcome to Fed’s “Bail-Out Nation.” America, the Land of the Free, is quickly becoming the “Land of the Freebie,” especially for members of the millionaire corporate elite who make multi-billion dollar mistakes… with someone else’s money. This unfortunate state of affairs is jeopardizing the dollar’s value, as well as its hard-won reserve-currency status. Once upon […]

Commercial Paper Market Could Lose US$500B by Thanksgiving

Bad economic booms tend to produce bad results…like runaway indebtedness and a plummeting currency. Do you happen to know of any large Western economy with these characteristics? Sometimes, the difference between a good boom and a bad boom is very subtle and subjective. A “bad boom,” for example, might simply be a good boom that […]

Japan and China lead flight from the dollar

Japan and China led a record withdrawl of foreign funds from the United States in August, heightening fears of a fresh slide in the dollar and a spike in US bond yields. The US requires $70bn a month in capital inflows to cover its current account deficit Data from the US Treasury showed outflows of […]

NZ signs up to US terrorist database

And what does America get out of this deal? And what do they mean when they say;”There are bound to be some human rights concerns but the public good comes first.”  Our human rights are the public good. Ask the people arrested under the anti-terror law this week how they feel about the infringement on their […]

BNZ foresees soft landing but uncertainties reign

The Bank of New Zealand is forecasting a soft landing for the economy based on easing housing figures, but says there are no guarantees. “These are extraordinarily uncertain times. The domestic economy is being boosted by the stimulatory impact of easing fiscal policy and massive income growth accruing to the dairy sector, while being battered […]

It’s Time For The Banks To Face The Hangman

By Mike Whitney Officials in the Treasury Dept—-working with their colleagues at Citigroup, J.P. Morgan and Bank of America—have concocted a scheme to rescue the banks from their massive losses in mortgage-backed securities. The group is planning to set up a $100 billion emergency fund which will purchase non-performing assets for short term debt. In […]

US stocks: Tumble on Wall Street

US investors saw their stock portfolios scorched today as oil prices rallied amid heightened tensions between Turkey’s government and Kurdish rebels located in northern Iraq. The Dow Jones Industrial Average dropped a hefty 71.29 points (0.51 per cent) to a preliminary close of 13,913.51. The Nasdaq composite slid 16.14 points (0.58 per cent) to 2,763.91 […]

NZ dollar down US1c as investors again run scared

The New Zealand dollar slid 1c against the greenback yesterday as investors again fled risky investments and sent US share prices down sharply. The kiwi closed US1c below Monday’s US76.23c close. ANZ bank said yesterday that despite US dollar weakness, the kiwi was sold off as some risk aversion returned. Credit concerns were reignited in […]

Monster wind farm would be one of world’s biggest

While I greatly applaud wind energy (coming from the flat windy low-lands of Holland) in local sustainable wind farms that accommodate small communities and don’t affect the environment to the point of destruction, I fail to see why these monstrosities have to do with a sustainable society. They don’t replace dirtier forms of energy, they […]

Police move may anger moderates.

Maori academics and politicians have warned that police raids on Maori activists could have the opposite effect and fuel the fire of extremism. Professor Taiarahia Black from Massey University said there was widespread disquiet within Maoridom at the “heavy-handed” police actions. “For people who already feel marginalised, this is going to add fuel to the […]

Geneva investor repayments stopped

Geneva Finance has stopped repaying investors, owed more than $112 million, as it struggles to remain afloat. The Auckland-based company plans to ask its 4500 investors to agree to a repayment moratorium of 612 months, as it tries to stabilise its position. International credit rating agency Standard and Poor’s immediately dropped its long-term rating of […]

Foreclosures, Inflation to Wipe Out Credit Debt Burden for US Economy

Let’s see…the Dow rose 77 points on Friday. Oil hit a new record – at above US$85 a barrel. But we always try to look beyond to news to figure out what is going on. Despite the problems in housing, most Americans are feeling pretty fat and sassy. Living standards – at least, by the […]

Why the US Central Bank Wants to Create Inflation, Destroy US Dollar

It’s the end of the world as we know it…and we feel fine! India is booming. China is booming. The latest news from the Middle Kingdom tells us that its trade surplus is rising at a 56% annual rate. Heck, even Argentina is booming. Its economy has been growing about three times faster than the […]

Children’s homes hit by buyout fears

John Key and National anyone ? Concern at private equity’s role in social services Nick Mathiason, business correspondent Sunday October 14, 2007 The Observer The collapse of a private equity-backed care home dealing with sexually abused and autistic children has sparked renewed concern at the advance of financial buyers into British public services. Sedgmoor, owned by […]