Monday, June 11, 2007

ZenTiger Bollard Baffled

Despite the Bollard and the Reserve Bank's best efforts to cool the property market, house values are still rising.

"There's something going on here that I just don't understand" said Bollard, as he hinted interest rates of 20% might sort the problem. "I have no idea really, but like an elevator, there are only two directions I can go with this. I have a hunch that going up is a step in the right direction."

Related Link: Bollard Baffled by Buoyant Buying of Buildings

3 comment(s):

Anonymous said...

A hunch?
Is that the best he can do?

Greg said...

The thing with bubbles is that you refuse to beleive you're riding one until it bursts and you crash.

Manic market activity will continue right up to that turning point. Thereafter, everyone will say how obvious it was and how silly the enthusiasm for housing was...

Anonymous said...

I must say I'm disturbed that active intervention was used. It will only encourage currency speculation amongst those with even larger reserves.

It's the equivalent of currency chicken, except your in a VW, and 'they' are in a Abrams tank.

BSOn:I wonder what the ramifications would be if the OCR was randomly fluctuated on a daily basis. Would this cause trouble for short term currency speculators?:BSOff

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