Few mortgage graph weekend out-takes [🧵1/n] Mortgage payments hit a ridiculous $25bn in the fourth quarter of 2024. That's about 60% of total NZ wages earned. We currently have $370bn of housing loans (do the math on the fortnightly payment!) - ThreadSky

musicalchairs.bsky.social • 13 days ago

Few mortgage graph weekend out-takes [🧵1/n]
Mortgage payments hit a ridiculous $25bn in the fourth quarter of 2024. That's about 60% of total NZ wages earned. We currently have $370bn of housing loans (do the math on the fortnightly payment!)

Comments

musicalchairs.bsky.social•13 days ago

It might surprise you how total mortgage payments have compared to wages over the last ten years. Lots of interacting variables here of course. For example... [2/n]

musicalchairs.bsky.social•13 days ago

Falling house prices, reduced lending, and wage growth mean that total housing loans outstanding as a % of wages is back to levels last seen in 2007. But, we look well poised to get back to sillier levels of debt through 2025 and 2026. [3/n]

musicalchairs.bsky.social•13 days ago

Here's the net increase in housing loans as a % of total wages. Incredible that during the 2000s banks were printing enough money *net* to pay the wages of 30% of all NZ workers. That was the real wage subsidy right there. Bonkers that reckonomists measured it as a productivity boom. [4/n]

musicalchairs.bsky.social•13 days ago

I'll end with an old favourite cos it illustrates how our 'growth' from the mid-80s to 2009 was driven almost entirely by liberalised banks pumping credit into our economy. Champers and oysters all round. That pile of private debt now sits round the neck of our economy like a millstone. [Ends]

bernardchickey.bsky.social•13 days ago

Just imagine what might happen if a new RBNZ relaxes the capital requirements for banks and loosens the DTIs and LVRs, as the NZ Initiative has demanded constantly.

hariet.bsky.social•13 days ago

What could go wrong? and who is insuring depositors if something does go wrong?

brettcd.bsky.social•13 days ago

Who appoints the next governor and what influences their decision?

robdickinson.bsky.social•11 days ago

Wouldn't surprise me whole bunch of landlords will leverage up to the asshole and pump the housing market

Crass attempt at a feel good before next election

timward2014.bsky.social•13 days ago

"tHe GoVeRnMeNt nEeDs tO bE mOrE cArEfUL wItH mOnEy..."

kentduston.bsky.social•13 days ago

“And that yellow line, kiddies, multiplied by rent-seeking Aussie-owned banks that charge practically the highest net interest margins in the OECD and then export 100% of the proceeds, is why we can’t have nice things”

mountaintui.bsky.social•13 days ago

Who are you, fucking hero.

ivankarosandich.bsky.social•13 days ago

Yep, always fantastic threads where pictures demonstrate how fucked the govt policies are.

lotts.bsky.social•12 days ago

Remembering silly 2017 me who convinced myself that promises to fix housing affordability would mean ending this fiasco, not creating a new floor via shitboxes so new bigger mortgages could be created for everything that already existed, lol.

ivankarosandich.bsky.social•12 days ago

We need CGT to stop the crazy windfalls our housing market creates for those that already have houses

Comments

Posting Rules

Reply