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Thursday, May 28, 2009

Budget 09 - Time to be honest with how bad it will get


Unemployment will swell - Treasury
The main forecast assumed some growth would begin to flow through in the 2009 December quarter, but Treasury warned if New Zealand's trading partners showed ongoing weaker growth, New Zealand's economy could continue to decline through 2010 and push unemployment up to 10 percent.

"Higher unemployment would lead to more mortgagee sales and lower demand for houses with housing prices falling further than in the main forecast," Treasury said.

Under the mid-range forecast house prices would fall by 20.4 percent in real terms from their peak in 2007.


The meteor strike of greedy fraud spawned in the clusterfuck of the American sub-prime mortgage meltdown has just had its first shock wave hit our far flung Isles and the reality seems to suggest that things are going to get much worse. Bernard Hickey, a man much derided as a 'permabear' by those who have vested interests in the happy happy joy joy industrialized media consumer pharmaceutically induced optimism needed to fluff the global pyramid scheme using corporate financial weapons of mass destruction, has predicted that the House prices would fall a further 10% on top of where Treasury currently predict. What our franticly optimistic friends with vested interests in the sunshine spin seem in total denial about is that the unregulated corporate greed has to unwind violently, that this is capitalism working in it’s most primal way and that the coming depression demands much, much, much better leadership than this Government has shown to date.

Mortgagee sale explosion, unemployment to 10% and a planet in economic depression all demand a response with vision well beyond the means of this budget.

6 Comments:

At 28/5/09 3:50 pm, Anonymous Anonymous said...

onya bomber

they have taken the easy option and it will come back to bite them big time. key is a populist who, whilst believing his own hype, is already looking to his next job. english is out of his depth. man i bet he wishes it was smirky cullen sipping from the poisoned chalice, not him.

they need to start telling the truth... it's going to get a lot worse before it begins to get better

what a sad bunch of cowards... the ordinary person will suffer for the weakness of these two, because the really black budget will come and it will probably be the next one, and the one after that...

 
At 28/5/09 7:14 pm, Anonymous Anonymous said...

I agree. He should have been brave and cut benefits in half, slashed taxes, and shifted super entitlement age to at least 70. But he pussied out.

 
At 28/5/09 8:42 pm, Anonymous Anonymous said...

STANDARD AND POORS JUST PULLED A SWIFTY AND DUPED OLD DON-KEY AND THE SPEIGHTS MAN PRIDE OF THE SOUTH AND BOY DID THEY FALL FOR IT BIG TIME AND JUST FLUSHED OUR LIFE SAVINS DA SUPA FUND DOWN THE GORDON GECKO WALL ST TOILET.SUSPENDED PAYMENTS TO BIG BROTHA EQUALS GLOBALONEY AND GETTIN STUNG IN THE BUM BY GOOD OLE UNCLE SAM WHO IS BROKE RIGHT NOW AND LOOKIN FOR SOME GOOD OLE BOY FINANCE COMPANY CASH TO STASH IN THE BACK POCKET OF THE GREEDIEST AND MOST SELFISH COUNTRY ON EARTH.FUCK DA TAX CUTS!

 
At 28/5/09 11:10 pm, Anonymous bc said...

That last comment demonstrates why the national literacy standards are needed urgently!

 
At 29/5/09 8:49 am, Anonymous Anonymous said...

You seem to be in an extremel;y small minority, (possibly of one), when it comes to this projected unemployment rate of 10%.

Most serious economic commentators are projecting that the rate will peak at just over 7% - Ah I think I have spotted the problem.

 
At 29/5/09 9:31 am, Blogger Bomber said...

You seem to be in an extremel;y small minority, (possibly of one), when it comes to this projected unemployment rate of 10%.

Most serious economic commentators are projecting that the rate will peak at just over 7% - Ah I think I have spotted the problem.
YAWN - Okay Anon, does the Budget have a worst case scenario - yes or no? (The answer is yes)

What is that worst case scenario? (in case you have troble reading, it's 10% unemployment).

THAT NUMBER IS FROM THE OFFICIALS

Every worst case economic scenario previously suggested has so far become reality because the reality is that this is the worst ecopnomic recession to ever hit our generation, hell even your precious Minister of Social Development on the first day of Parliament this year stated that she had seen a report as high as 14% while the medicatedly optimistic John Key told everyone Unemployment WOULD NOT go above 7%.

Your the kind of person Anon who will still be attacking Bernard Hickey as a 'permabear' when house prices finally hit the 30% depreciation he predicted they would hit (currently they are 20%).

You want to pretend it's all fine and dandy and stay in denail how bad it's going to get, go right ahead, but don't tell me what to think.

 

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