Links 17 May 2018

Global Macro / Markets / Investing:








  1. … Today’s New Zealand Government Budget …

    Budget 2018: The ‘blathering’ is almost over as Govt set to reveal spending plans – Audrey Young OPINION – NZ Herald

    State housing, education and health are set to receive a major boost in funding from the first Labour-led Budget to be delivered in 10 years.

    National suspects there will be a surprise or two when Grant Robertson delivers the Budget at 2pm, but Prime Minister Jacinda Ardern insists there won’t be.

    “If anyone is surprised, it will those who haven’t heard me blather on about it for a long time.” …

    … concluding …

    … Deputy Prime Minister and New Zealand First Prime Minister Winston Peters, who has already received a bountiful boost of $900 million for Foreign Affairs, said his party’s influence would be evident in it.

    “”It will have a whole new look of a budget that’s got a heart and a conscience,” he said.

    “That’s what makes New Zealand First special in this Government.”

    Revisiting a theme from the speech he gave when choosing Labour in October to lead the Government, Peters said: “We are going to see capitalism regain its human face.” … read more via hyperlink above …
    UPDATE – New (IPSOS) survey reveals housing, poverty and healthcare most concern New Zealanders – NZ Herald

    Auckland MÄori Housing Summit to focus on development opportunities |

    • They didn’t mention her salary or whether she was living rent free with her parents during the saving period. This article is basically a rent shaming piece to belittle those who can’t really afford it and still haven’t flushed their financial future down the toilet.

    • Mate, is she Assad Tannous’s sis or something… Assad Tannous is notorious pump N dump king of ASX!
      He is already under investigation for fraud/pump-n-dump of spec stocks… check out his references on fin-twits or trader-twits!

    • Luke14 HOURS AGO
      Wow. Half a million dollars on a studio/1-bed with a 5% deposit and a single income! I hope she’s factored in the dwindling property prices, the $300k+ interest she owes on top of the $450k and the looming interest rate hike. And let’s not forget that her parents have taken on a huge risk too. Is she banking on her place to reap the unsustainable growth this country’s already experienced? Because it’s not happening. Even if it were to continue, small flats don’t experience the same rate of growth as we saw with house prices. That’s why the people she’s “so different” to want to buy a 3/4 bed house. And if she does decide to start a family then she’s going to need a bigger place anyway. I doubt rental yields will cover her mortgage repayments and if she could only muster up $25k after sacrificing her lifestyle and putting away half her salary then tough times are ahead. This is sheer lunacy. What’s even worse is that we promote this as a normal and positive story. Frightening.

      I’ve already set my max borrowing limit to be around $400k and I’m on a much higher salary with my partner earning money too. That’s because I’m taking into account 7.5% interest rates, even then you will pay a fortune in Interest over 30 years. Simply not worth it.

    • Oh dear!! The Melbourne heat-map has a peanus with Glenwaverley at its tip! That’s a hard enough sign for anyone to not go there… 😀

      And now – you can’t un-see it!

  2. Reagan was elected in 1980 and with him came a different Republican party.

    These were not the Republicans of Eisenhower or even Nixon; they took their philosophy from the Powell Memorandum and were dedicated to re-directing upwards all the value that had accrued to the middle class after WW2 thanks to strong unions, progressive tax rates, an expanding economy and good public education systems.

    Everything became a profit center from retirement plans to health care to education etc. Everything was to be looted and the benefits redistributed upwards to the people who were financing the politicians and calling the tunes.

    • SweeperMEMBER

      But why did the extreme doctrine become the dominant one?
      Inconvenient answer: because a new cohort who didn’t understand politics, disoriented by the new “left” garbage on campus in the 70s entered the fray at the same time and sidetracked every issue away from class politics.

    • I hope stephen morris reads that
      he has no idea how politics works.
      (A Jones had accused Wagners of bribing A Joyce to get Qantas to fly out of their privately-built Wellcamp Airport in Toowoomba, a claim strongly denied.)
      That is how it works. (how would u bribe A Joyce???)

      • A in A Joyce stand for Ass as in “what an ass!”
        B in B Joyce stands for Bunt as in “He’s an utter bunt of a man…”

  3. The pension article – are they self funded retirees or do they get the government pension? If the government pension, are they allowed to stay abroad 365 days per year and still get the full pension? (I am not saying their pension should be cut)

    • innocent bystanderMEMBER

      it said she was on the govt pension. but my understanding is you can’t be overseas for more than 6 weeks pa without it affecting payments. something doesn’t add up in that article.
      wonder how she will get on with health costs/issues…

    • Healthcare is the issue. I have relos who followed a similar path and fully aware they will be much worse off if they lose Medicare. They come to Aus once a year to maintain the medicare benefit. The cost of the annual trip offsets any supposed savings from living o/s. Also, since moving o/s the value of the house they sold in Aus doubled, and the house they bought in Italy has halved.

      If one of them (couple) gets a serious illness then I expect them to move permanently back to Australia and cursing their decision to leave in the first place. There was another poster on MB who noted many sea/tree change retirees in Australia also end up in a similar dilemma eventually having to move back to a major city to avoid very lengthy commutes for specialised healthcare.

  4. Big day for local govt in qld today
    A law going through qld parlimant to stand down any local govt mayor or councillor who has been tagged for a corruption investigation.
    When it goes through, the local mayor, the mayor of logan and the mayor of Ipswich are on the footpath. And that is just the start.
    Great to see Alan Jones wading into that wagner mob, up in Toowoomba.
    The wash up of that will be interesting???

    • haroldusMEMBER

      Funny at first pass I read “Great to see Alan Jones wading into that wanger mob”.

      • THey say, you interpret what you think, when you read.
        reading only steers the preconception in a small direction each time
        WW you read rite on that wanger mob.

    • Jones seems to be behaving like a typical bully. I see he’s turned on the waterworks in court, poor little thing, saying that what he said about the flood was only his honest opinion. He’s entitled to his own opinions but not his own facts and what he said has been found to be factually false. If that regional newspaper had to pay over a $100k for reporting a falsehood about Sophie Mirabella then I reckon Jones or at least his backers should be good for the full $4.8m.

      • the trouble is>>>> Jones is correct
        Watch how this unravels, all the way back to the corruption of the CSG contracts
        Note to see who is shown to be corrupt
        Observe how the canaries squeal, so to speak
        (unless u know more than i do, which you dont, grub)

  5. Did you ever think you would read this?
    Which class action offers the best return for share holders???
    AMP is being sued left, right and centre, and faces up to 5CA’s, as lawyers hope for an easy victory and lots of money.
    But which legal firm offers the best result for shareholders???
    ABC has the story.