Stagflation is Here

War—after all, what is it that the people get? Why—widows, taxes, wooden legs and debt. Samuel B. Pettengill “Armies, and debts, and taxes are the known instruments for bringing the many under the domination of the few. James Madison, 4th U.S. President (April 20, 1795) “Let me issue and control a nation’s currency and I […]

Update: Crash! Biggest fall in shares since September 11

Recession fears wipe £84bn off the value of Britain’s biggest companies as stock markets tumble across the globe By Nick Clark Published: 22 January 2008   It was the day that the fear factor took over. From Asia to South America, share prices tumbled yesterday as the world’s investors gambled that a US recession was now […]

Udate: US recession fears wipe £77bn from London shares

London’s FTSE 100 fell to an 18-month low as markets took a dim view of President Bush’s plan to fight off a US downturn Patrick Hosking and Leo Lewis About £77 billion was wiped from UK blue chip share values this morning as fears of a US recession reverberated around the globe, sending the FTSE […]

US credit crisis pushes up NZ mortgages

The US credit crunch has finally hit New Zealand home-buyers directly in the form of rising mortgage rates. Westpac yesterday raised its fixed rate mortgages by 20 points, taking its two-year fixed rate from 9.4 per cent to 9.6 per cent. The increase matches moves by New Zealand’s largest bank, ANZ National, within the last […]

Crisis may make 1929 look a ‘walk in the park’

Meet some of John Key’s palls. And wonder if you want someone who adheres to the same principles is your first choice as Prime minister of New Zealand. As central banks continue to splash their cash over the system, so far to little effect, Ambrose Evans-Pritchard argues things are rapidly spiralling out of their control […]

Bank loan funding costs at 10 year peak

The Good Returns mortgage rate table is awash with red this week as lenders push rates up even though there has been no change in the official cost of borrowing in New Zealand. A general re-pricing of home loan rates appears to be underway, with increases from some banks of up to 30 basis points, […]

The Last Dead Bull on Wall Street

By Mike Whitney   11/11/07 “ICH” — – Whew! What a week for the stock market. On Wednesday the market took a 360 point nosedive followed, two days later, by a 220 point belly-flop. By the time it was over, the trading pits looked more like a sausage-packing plant than the world’s financial epicenter. After the […]

The Economic Consequences of Mr. Bush

The next president will have to deal with yet another crippling legacy of George W. Bush: the economy. A Nobel laureate, Joseph E. Stiglitz, sees a generation-long struggle to recoup. by Joseph E. Stiglitz December 2007 The American economy can take a lot of abuse, but no economy is invincible. When we look back someday […]

Chancellor makes credit crunch warning

Alistair Darling warned this morning that the UK has entered “an unparalleled period of financial uncertainty” following the departure of Charles Prince from Citigroup.The chancellor called on the banking community to be candid about the damage caused by this summer’s credit crunch and the crisis in America’s sub-prime mortgage market. “We need to get to […]

Biofuels ‘crime against humanity’

By Grant Ferrett BBC News Food prices have risen as more land is used to produce biofuels A United Nations expert has condemned the growing use of crops to produce biofuels as a replacement for petrol as a crime against humanity. The UN special rapporteur on the right to food, Jean Ziegler, said he feared […]

‘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 […]