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CEO Antonia Watson says 'the confidence dial' needs to shift from home loan borrowers to business & agriculture borrowers to reverse the rise of housing lending as a percentage of ANZ NZ's total lending
The RBNZ (read BIS) needs to adjust the low risk weighted capital requirements for residential property mortgage assets over higher weighted business and agriculture loans.
Legislation must be enacted to put an end to bank liens on mortgaged residential property to further encourage unsecured loans to GDP qualifying enterprises. Or:
I and others have urged a policy of land taxation in order to collect the land’s rising site value, so that it will not be pledged to banks for mortgage credit to further inflate china’s housing prices. - Link
If you follow banking/finance, failure/fraud then this series is excellent. IT talks about the S&L and since in the US and globally. The Best Way to Rob a Bank Is to Own One https://youtube.com/playlist?list=PL5wue8oAUyGq1LJuid3NT1QIQUQ2kcEhP
"The RBNZ (read BIS) needs to adjust the low risk weighted capital requirements for residential property mortgage assets over higher weighted business and agriculture loans".
Exactly right!! This will also cause a significant re-adjustment of available capital, and even of relative interest rates, between parasitic unproductive speculation caused by the housing Ponzi, and the productive sectors of the real economy.
No nation gets wealthy by selling houses to each other, and accumulating debt in the process. This is a fool's paradise where much of the paper wealth invested in housing is purely illusory and very fragile. A nation gets wealthy by investing in productive enterprises and in the real economy, and in improving productivity and competitiveness.
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