Quick Dec 24 balance sheet update. Banks still owe the rest of us around $420bn in lovely NZ dollars (net). The cash in our bank accounts is an asset for us, but a liability (debt) for the banks. Don't try and take it out all at once! 😨 [🧵 1/n] - ThreadSky

musicalchairs.bsky.social • 6 days ago

Quick Dec 24 balance sheet update. Banks still owe the rest of us around $420bn in lovely NZ dollars (net). The cash in our bank accounts is an asset for us, but a liability (debt) for the banks. Don't try and take it out all at once! 😨 [🧵 1/n]

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musicalchairs.bsky.social•6 days ago

NZ Central Govt has a net bond liability of around $136bn. Govt has issued about $196bn worth of bonds, but it owns $60bn of them (and pays itself interest on those bonds for giggles). The rest of the world is the big holder of NZ debt securities. [2/n]

musicalchairs.bsky.social•6 days ago

Households own a stunning $1.1 trillion in equity/shares ($220,000 per kiwi) - making Govt's $148bn stack look a little lacklustre. Obviously, this means that NZ businesses are $1.5 trillion in the red. Don't worry, they're worth it (they have wildly over-priced property to balance the books). [3/n]

musicalchairs.bsky.social•6 days ago

Our pension and insurance schemes are worth around $160bn - an asset for households and a liability for the financial sector. Don't worry, what could go wrong? [4/n]

musicalchairs.bsky.social•6 days ago

Loans are by far the biggest asset for our financial sector (signed mortgage loan agreements are very attractive financial assets for eg). Housholds (-$306bn) and businesses (-$323bn) are both in the red on loans obviously. [5/n]

musicalchairs.bsky.social•6 days ago

Over the year to December 2024, balance sheets have shifted a bit. Here's the annual change to the Govt balance sheet. Govt issued $20bn of new debt (bonds) but managed to accumulate $15bn of cash and share values moved up nicely too. So, a $6.5bn increase overall. Kerching. [6/n]

musicalchairs.bsky.social•6 days ago

Households did OK too (in aggregate). Some losses on equity and shares, but pension schemes and cash in the bank ticked up nicely. That'll do for now. [Ends]

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