Reserve Bank boss criticises Covid property investors, defends decisions

[@CaptScrotes]

Ain't nobody in this world willing to take accountability for anything negative that happens.

[@barryballsit4944]

Yes all those people who over borrowed and didnt save for a rainy day, stop blaming tne Bank

[@cindykenyon8860]

War in Ukrainian ....had no effect in NZ at all.......the 23 apples that fell off a tree in the Hawkes bay did not cause the price of every product in a super market to go through the roof..we don't grow aspirin in the Hawkes bay.....or loaves of Bread.....what we had was a dumb Labour Govt that doesn't even know how rip off Business run....... oh so bad was it for Super markets in Nz,,,that one of them spent million repainting its name on itself.......do you think it went out one day and borrowed 400million. to do that.....oh no...they had a Tax problem......with all the money they had ripped of NZers..........there are still too many 2 legged sheep in this country...lets hope being at School will teach the next lot.

[@CaptScrotes]

@@cindykenyon8860 Jesus

[@rickmccaughan4241]

Can't understand the Reserve Bank Instead of putting up mortgage rates they should of told people to put their money into their kiwisaver and if they do not penalized. A WIN WIN . The money invested in kiwisaver could of been invested and high interest rates wouldn't of killed families. CANT BLAME the banks for profiteering when the Reserve bank allowed them .Another thing is what NZ companies are great investments .and where are the safeguards to qaurantee .Many companies go bust and owe so much and the so called owners can't pay but still living in a luxury lifestyle .can't make money in NZ when we are part of a global economy .too small ..The Reserve bank said that we need more unemployment so .a lot of bs

[@Gaype.92]

@@barryballsit4944The reserve bank left that tap on way to long alot of inflation was domestically driven. I think they should be held responsible.

[@vadeout.]

1:01.. buying government bonds with money printed into existence. This is called expanding the money supply..(creating liquidity in his terms) in other words, inflating the money supply. These bankers, honestly.

[@eewwiinnss]

Correct its called quantitative easing, devaluation of the dollar, driving liquidity is a ironic way of saying he's driving inflation. The cost of living is a joke, and these guys are the clowns doing the stand up.

[@truthseeker5911]

@@eewwiinnss QE is an exchange of financial assets and no one ends up with anything other than what they already owned.

[@brett7989]

AMAZING. This reporter didn’t mention Orr dropping LVRs by HALF march 2020. The RB directly targeted housing giving investors twice the equity they could draw on, AND THEY DID. Orr also took the OCR from 2.5% to 1% from 2015 to 2019, when 2.5% was the lowest it’s been in history and no real reason other than to target housing. Did this reporter mention that,, NOOOOOOO . Orr is responsible for high house prices since he joined the RB. Alan bollard was the best lifting the OCR pre the GFC to 8.25% because of a house bubble. Graeme wheeler and Orr were shockers keeping interest rates to low in housing booms. KNOW ONE EVER MENTIONS ORR DROPPING LVRs AT THE BEGINNING OF COVID, only in nz

[@kiwikiwi223]

Interesting take. Do you think changing tax and investing policies could help crash the housing market or is it purely the reserve bank that could do the most.

[@brett7989]

@ nz is probably in the worst housing crash now than ever. Definitely worse than 2009, and probably past the 80s . And most of the little towns in nz haven’t really followed Auckland and Wellington YET . They will. Nz generally follows Auckland. Places like Tauranga strive on Aucklanders downsizing, not anymore tho. Listings in nz are skyrocketing, demand is shocking, asking prices are dropping. Most people forget you need 2 things to buy a house, means to pay, a low interest rate helps here, and a deposit. In a boom deposits are easy because of capital gains and leverage. One house on your street sells higher the rest of the street benefits as well. But in a bad downturn like now and 2008 which was mild, the equity/capital gains are lost, can’t leverage . That’s why in bad times, now , and years after the gfc , the housing market went down and flat for so long, even with interest rates going down, people couldn’t find a deposit. And government and central banks can’t generally help here. Thats why in bad times you hear everyone going on about fhbers as if they will save the day, it’s because they don’t leverage, they save and rob there KiwiSaver. Investors and upsizers are dead in the water to capital gains return, which takes years. The biggest problem with a dead housing market is getting it started, you need great demand and thats hard to start

[@agentlevanto2964]

You’re spot on - Orr cynically juiced the housing market as a sure fire way of getting economic activity kicking along as a response to COVID. All well telling everyone to “cool your jets” … damage done

[@kiwikiwi223]

@@brett7989 I would not call this a housing crash

[@brett7989]

@ over 20% down is a housing crash,

[@paulvanheerden2643]

Thank you for quality programming. What you are describing here is accurate - the flight to safety to the US stock market and dollar. This is what is keeping the market going at this time and preventing a crash. This "melt UP" phase will go on for a while, then as the global economy crashes so will US markets only harder due to the "No Win scenario" that has been created by so much obscene debt. Next comes the "Default Phase" with mega-massive bankruptcies and lastly "Asset Seizures" where banks and the Fed government will simply declare an extreme national emergency to justify the crisis and debit your account directly. The fools will think that this could never happen. The actual legislation for this type of action is already in place. My advice to anyone feeling the heat in this inflation, just trade long term more than ever, I have made over 540k from day trading with Aldona Šabanienė in few weeks, this is one of the best medium to backup your assets incase it goes bearish..

[@Peppy34320]

I have seen a lot of Positive posts about Aldona Šabanienė. Please how do I reach her?

[@paulvanheerden2643]

She mostly interacts on Telegrams, using the user-name.

[@paulvanheerden2643]

@AldonaSabaniene

[@AnnaMercury-t3s]

Nice info, i appreciate your concern this will help a lot especially to the young investors who have no or lesser knowledge on how the market works.

[@praphatphansri3817]

Well this is not my first time of seeing her name on social platform. I think she's extremely brilliant and lucrative at the same time.

[@andrewking9435]

NZ along with other western countries has welcomed immigration, but not correspondingly invested in infrastructure to keep up. Its bad management

[@countzer0408]

This ^^^

[@dweller6065]

Has implications for how RBNZ implements policy, but is not a control variable for which the RBNZ is responsible.

[@nigelwoolfmobile]

Immigration is not the cause of the issue for NZ. Using housing for investments is the problem.

[@barryballsit4944]

Oh yes immigration is never a cause of any problem for some folk. Immigrants dont add to demand for housing? The Governor said excessive population growth had led to capital shallowing which is a problem for productivity and the economy

[@cameronlabone6050]

@@andrewking9435 failed to modernize and educate eh ah well gone are the lazy days...

[@Ced_GT]

WTF is he talking about - Thrive in 25! - completely delusional, borderline Insanity. Grade F -

[@kiwikiwi223]

Too many policies favoring property investors

[@fu8713]

Of course

[@user-kiwikind]

That’s because the people who vote and the politicians own property. People don’t vote for what’s best for the country but what’s best for them.

[@danielpye7738]

And what’s wrong with voting in self interest? Literally everyone does and I wish people would pretend they are voting in my “best interest” when they spout their virtues.

[@benmunckhof-swain4493]

@@danielpye7738wrong, not everyone. I don’t

[@whatif6573]

​@@danielpye7738 Perhaps it is more a matter of having a different idea of what "self interest" is. For me, self interest is protecting the environment and climate, water, air and land - in essence, it is crazy to foul your own bed. For me, I see Te Tiriti o Waitangi as important for me - it is what gives a clear place and legitimacy for non-Māori. If my "self-interest" was simply how much my house price was going to be elevated or how much I was getting in tax cuts, I would think that to be really narrow definition - we all know and care about people who are not home owners who have to live somewhere - our kids, our parents, friends, young co-workers. We all need health care, education and aged care, an old age pension, welfare etc. These are not gifts we give to others, these are guarantees we give to ourselves. Ngā mihi

[@ns7083]

Basically he blamed everyone, except RBNZ for their mistakes. Would love to see him trying to hold onto a job in private sector with that kind of performance.

[@nzbuzzykiwi369]

Haha I was thinking the same thing haha

[@charleswalker2484]

@@zrymill wow are you really just figuring out these central banks are evil and rule over us not for us? It's been this way since their creation. Look into the origins of not only this bank but even the idea of reserve banks and fractional reserve lending. This is organised crime.

[@dweller6065]

But the NZ economy, like all economies has been subjected to 2 very large shocks in recent years - Covid Shutdowns and Ukraine. These were bigger shocks than seen in the 1970s oil shocks. I think you need to cut the RBNZ some slack. The reporter in this story does not have a clue.

[@obalisk990]

​@@dweller6065 Agreed. Pushing accountability onto others allows one to be deemed a victim.

[@dweller6065]

@@obalisk990 What a silly suggestion. The RBNZ is not claiming victim status - it is in the business of stabilizing the economy when that economy is subject to external shocks. Which it has. I think you have spent too long listening to grievance filled media.

[@kelvinkelso4896]

An obsession with owning a house is not a problem. The problem is that when someone gets to retirement age and still rents .....now that's poverty.

[@Matthew-zv8qe]

They cant afford a home because others are obsessed with speculating on housing. So yeah it is the problem. Our restrictive zoning and large resistance to intensification doesn’t help either. The last 3 government is making strides in this but cut out the medium density residential standards and their policy may not compensate the additional housing capacity the MDRS bought. Zoning is improving though still.

[@jasonpoihegatama1347]

When the government have to subsidise rent for working class people, old, and low income family's NZ has and is going to have on going issues costing the taxpayer. Likely they have shares in property investors crop no one can be that dunb

[@danielpye7738]

That’s a choice. I am witnessing this first hand at work. And I know guys before who got paid way less who have managed to buy a house.

[@thecarpenter645]

It’s not good if you can’t afford it and the banks just say you can and therefore load you up with debt and too much money supply from the banks into the asset market is only going to inflate the market and that’s the problem we have today too much debt and diminishing productivity.

[@kevinmckay1955]

⁠@@Matthew-zv8qe they need to stop banks lending so that individuals can buy second existing houses. Banks create money when they lend , they are not merely intermediaries. Why wouldn’t we regulate Banks? They sit smuggly on the sideline encouraging speculation.

[@allencollinson1942]

Print money 24/7, make savings worthless and then complain that people invest in houses and other assets.

[@andrewking9435]

Exactly. Even inflation rate of 2.5% wich RBNZ is happy with, they're eroding purchasing power.

[@Daniel-qj3tp]

Very good point

[@truthseeker5911]

The money for the housing market is created by the commercial banks themselves, they don't lend out government created money.

[@RicoAshmore]

inflation at 2-3% is internationally accepted as optimal because it still spurs growth… look at the US

[@andrewking9435]

@RicoAshmore the growth is ficitious if it creates GDP of 2-3%. And at the same time they are making currency worthless and driving asset bubbles as people struggle to retain value in their savings

[@andrewking9435]

When RBNZ buys bonds to provide liquidity, where does the cash come from if not printed/ numbers created on a screen?

[@ael3377]

Yeah, this guy is seriously hilarious. New Zealand's highest paid Comedian.

[@danielpye7738]

That’s the real trick of quantitive easing. The government injects liquidity to the banks with it bond but back. Now how the banks choose to use that money, well that’s on them. We can compare the 2020 QE program directly to the 2008 one issued by the Federal Reserve. In 2008 the government issued the money to “save” the banks on the premise it was reinvested and not used for bonuses. Obama famously warned them. They completely ignored him hence a stagnant economy at the time and difficult borrowing conditions. And most glaringly obvious no inflation. In 2020 the money flowed into the economy one way or another through various loans. Think of houses, think of how businesses have gone bust and risen since then all accessing capital and more liquidity into our market. Yes a lot of debt. But as Milton Friedman said one man’s debt in another one’s receipt.

[@Goodkiwibloke]

That comment was a defection for less knowledgeable interviewers. Katie bought it

[@danielpye7738]

I answered this, did you delete it? Or did KZbin do it?

[@222-i6o]

chronic gas lighter ....wellington is full of twats like orr

[@edawg654]

The underlying structure is the monetary system, Adrian. Which at this point incentivises buying NZ property as an investment (not purely shelter) due to monetary inflation I.e increasing supply of currency.

[@julians472]

100 percent!!!

[@truthseeker5911]

Unless you buy a house with cash you are not using currency you will be using broad money created by your bank. Other than cash the governments currency never leaves the reserve bank.

[@edawg654]

Increasing supply of currency is a reference to any form of fiat currency printing, including commercial bank (licensed) money printing in the form of loans. I would add that central banks globally create fiat denominated treasuries which are held by commercial banks to meet reserve liabilities. The distinction is not really relevant because at the end of the day the fiat system has to continuously inflate (increase in supply) which guarantees that fiat will erode in value next to hard assets like property, which investors flee to, to hide from the pernicious effects of the monetary system. It’s caused by the bankers, and the system as a whole.

[@BiscuitBamford]

Guy that made investing in property easy and lucrative by slashing rates and removing LVRs criticises people for investing in property.....

[@kaymish6178]

It's not really his fault that the government is subsidizing property buyers and punishing people who make productive investments.

[@Kelvinpaul4]

You would have to be stupid not to invest in property. This government has made it more enticing to invest in property. I have bought 3 rentals in order to fund a reasonable lifestyle in retirement as on cannot live on the state pension. He sounds against current government policies to encourage property investment. The biggest rolling sock NZ has is government austerity policies.

[@chrismckellar9350]

@@Kelvinpaul4 - Your greed is one of factors that houses are artificially high. Property buying/investing does create material economic and productivity growth.

[@dkerdnase]

Very sharp and professional. Corrects the journalist on the history timeline. Amazing interview!

[@danielpye7738]

Should have been sacked. I would have given him the boot straight away after the election.

[@cindykenyon8860]

War in Ukrainian ....had no effect in NZ at all.......the 23 apples that fell off a tree in the Hawkes bay did not cause the price of every product in a super market to go through the roof..we don't grow aspirin in the Hawkes bay.....or loaves of Bread.....what we had was a dumb Labour Govt that doesn't even know how rip off Business run....... oh so bad was it for Super markets in Nz,,,that one of them spent million repainting its name on itself.......do you think it went out one day and borrowed 400million. to do that.....oh no...they had a Tax problem......with all the money they had ripped of NZers..........there are still too many 2 legged sheep in this country...lets hope being at School will teach the next lot.

[@badchefi]

@@cindykenyon8860you Sound like you have absolutely no idea. Maybe lay off the internet for a while and get some good advise.

[@danielpye7738]

m.kzbin.info/www/bejne/hmPGmYycf5mWiNU Australia could be worse

[@peteoneill8741]

This guy single handedly introduced massive inflation to New Zealand families.

[@Craig-x7f]

This has engineered a recession should be sacked , how'd he keep his job!!!!!!! Only in NZ

[@lukegoatley8501]

He dodged the money creation questioning like a rat up a drain pipe!

[@myresponsesarelimited7895]

He just reworded it using the technical palava that he knows alot of people won't realize is the same dam thing- fractional lending 🤷‍♂️

[@kevinmckay1955]

Why aren’t we regulating Banks lending to individuals buying second existing houses? It’s speculation. Banks create money when they lend, they aren’t merely intermediaries. They sit smuggly on the sidelines when they are driving poor outcomes for NZers. Why smash domestic demand when he points to international supply chain factors. Doesn’t solve any of long term supply issues and inflation returns to normal as those factors resolve themselves.

[@222-i6o]

wuld be a lot easier to just put house price bck into cpi figures

[@nigelwoolfmobile]

It comes back to where the incentives are for individuals and businesses.

[@kathleenlewis1954]

People need a house to raise families

[@jdkapperino8541]

When housing is the main investment vehicle of the country, it makes having a house that much harder.

[@marksmit8112]

Hilarious since Orr jacked up property prices by 1. Unusually long low interest rates 2. Quantitative easing at such elevated levels to cause massive internal inflation 3. Not ring fencing extra monetary supply so banks lend more proportion to businesses than property 4. Not setting high LVR to investors so first home buyers are advantaged. Yes Adrian much easier to blame greedy property investors than RBNZ policies to make extraordinary bank profits. You are to blame Adrian mate

[@tonyvanhout2394]

Homes are over priced soon there won't be anyone able to buy them, wages haven't kept up with house price increases so media needs to stop pushing that the house market is the way to go

[@user-kiwikind]

Well prices in Auckland at least have dropped massively by about 20% in some places. To be fair they still to high but so far it looks like we have hit the limit.

[@tonyvanhout2394]

@@user-kiwikind I'm in CH_CH prices haven't really moved down

[@BogDog9]

have a look for a chart on google 'nz median household income vs median house price over time'

[@facundocarril3178]

@@tonyvanhout2394 Because prices in ChCh weren't insanely overpriced by NZ standards to being with

[@tonyvanhout2394]

@@facundocarril3178 still overpriced for what you get, to many fingers in the pie

[@W_Bin]

Excellent educator. Play it in schools.

[@andrewking9435]

The use of housing for investment was due to 1987 sharemarket crash, where people lost life savings when invested in shares and companies that went bust like Equicorp, Chase..also more recently Doug Grahams endorsed company, south canterbury finance etc

[@Goodkiwibloke]

You nailed it. Once bitten, twice shy

[@ptysme]

So true, and now that trauma is locking a whole generation out of fair home ownership. What trauma will come next…

[@222-i6o]

it became a speculative investment wen house prices wer taken out of the cpi in 99, thts wen dd cg went parabolic as the rbnz no longer had to worry abot the effect of cg on cpi figuers

[@nigelwoolfmobile]

The answer is to incentivise other investment vehicles by improving protections to mum and dad investors and providing the same advantages as investing in housing.

[@Goodkiwibloke]

@nigelwoolfmobile You have just described a tax payer funded investment underwrite / subsidy for M&D investors. This would go down like a lead balloon with those who struggle to make ends meet I'm not sure your answer is viable for a country that needs huge amounts spent on aging and insufficient infrastructure

[@StoganNZ]

The company i work for has laid off 0 staff over the passed years with our competitors laying off loads. I think Adrian will always get too much critisism but never any credit. the outcome is a result of business leaders making decisions in reaction. Of course they will point the finger when they are wrong and take the credit when they are right.

[@anonymous-bs1xb]

Your company is not the entirety of NZ

[@cindykenyon8860]

Sorry Sir this is NZ....someone else will pat you on the back if you have done a great job......never try patting yourself.

[@briancowper3057]

Nice work Adrian and Katey what a great interview and explanation of macro economics in action.

[@TheLiquidMix]

They lowered rates which incentivizes investing in scarce assets such as houses and stocks due to the weakening of the dollar...these are his policies in the Keynesian system that he perpetuates..

[@truthseeker5911]

It's our current account deficits with the rest of the world which weakens our dollar.

[@brett7989]

I wish this report asked Orr , why did you half LVRs at the same time crashing the OCR to 0.25% , if not to encourage investors to double their portfolio’s with the extra equity

[@raywheeler3135]

What planet were you living on when we had a global pandemic on earth?

[@brett7989]

@ this one where all central banks crashed interest rates but ours dropped LVRs , anyone that would support that would probably have vested interests in housing. Of course if Orr had done nothing houses prices probably would of crashed in 2020, so maybe down 20% then. Instead prices went up 40 odd percent to 2022 and back down 20 plus % from there. And still going. In 2019 the housing market was dying, to expensive then, and with a OCR of 1% . My guess is prices will eventually return to at least those prices. Any gains after that were pandemicly created. Unless you missed the pandemic yourself

[@JakeDent-y9b]

Be good to see this interview conducted by a politically neutral entity. Extremely weak journalism at best.

[@andrewking9435]

For businesses to operate with higher productivity require less regulation as opposed to more capital.

[@mws48]

I think both. Good set of comments on this video btw

[@MichaelCooper-e9c]

Is buying bonds not what most people would describe as printing money. The money used to buy the bonds was not in existence before hand. How can you blame people for buying property with the credit created, the institutions getting injected with capital (banks) will pretty much only lend on property because everything else is considered too high risk. The reserve bank would have known exactly where that money was going to end up.

[@ntskl]

Why are people not investing in things other than houses all the time? Good question! For one, when we invest in kiwi equities, we get pathetic returns and get slammed with huge taxes. When we invest in foreign equities, we get hit with FIF, aka tax on UNREALISED GAINS.

[@nigelwoolfmobile]

This man single handedly has done more harm to the NZ economy and New Zealander's lives than anyone else in recent times. Yes interest rates needed to be raised however he went too far for too long and we are still suffering the consequences of his poor judgement. Mr Orr's track record is shameful, but what is worse is those that allow him to stay in the job of reserve bank governor.

[@danielpye7738]

He went too low as well. His policy on top of Jacinda’s lockdowns were a recipe for disaster. And I called it at the time.

[@cindykenyon8860]

War in Ukrainian ....had no effect in NZ at all.......the 23 apples that fell off a tree in the Hawkes bay did not cause the price of every product in a super market to go through the roof..we don't grow aspirin in the Hawkes bay.....or loaves of Bread.....what we had was a dumb Labour Govt that doesn't even know how rip off Business run....... oh so bad was it for Super markets in Nz,,,that one of them spent million repainting its name on itself.......do you think it went out one day and borrowed 400million. to do that.....oh no...they had a Tax problem......with all the money they had ripped of NZers..........there are still too many 2 legged sheep in this country...lets hope being at School will teach the next lot.

[@GrantHodgsonWnNZ]

You obviously didn’t listen to this interview, because if you had you might have learned something

[@mikemann2053]

Excellent interview. Thank you.

[@dweller6065]

I thought it was crap. She played to the cheap seats.

[@nigelwoolfmobile]

Where's the laugh emoji when you need it.

[@barryballsit4944]

Excellent interview? She failed to mention Ukraine war as a cause 9f inflarion, the Governor had to school her on this basic fact

[@HandSolitude]

The govt sets the incentives. The investors can only play the cards as they lie. It's mad that we use interest rates to manage growth. Just gives free money to banks. We should have land tax to keep downwards pressure on housing and efficient and productive landholdings. It's the governments role to set the incentives. It's amazing how few economists understand incentives.

[@danielpye7738]

Name a single thing where adding tax has made something cheaper. Just one will suffice.

[@billrobinson-f5s]

Capital gains hahaha

[@truthseeker5911]

What free money do the banks get? They create all of the money that they need to lend out themselves and they pay interest to us on the deposits created.

[@Matthew-zv8qe]

Politics is irrational. We are distracted by whatever nonsense strikes a chord. Bike lanes, beneficiaries, speed bumps, road cones and road cones, road cones. The differentiation of correlation vs causation on issues is purely based on political convenience and "common sense", not truth. Spewing half-truths that sound right is fine most people won't quesiton it. The increase in coal imports was just a correlation after the oil and gas exploration ban. There wasn't enough time since the ban came in for a new gas exploration to lead to any new drilling anyway. The point is spewed over and over, cause it makes sense right. To talk about productivity as a massive 1# issue in this nation but then to turn a blind eye to the property sector and actually reverse some policy meant to tame it is nuts. It's easier to say it's people on the doll are the pressing issue. We treat the symptoms, not the root cause because the root causes actually take time and don't show results you can politicise easily. Of course this aint true all the time there are some good MPs on both sides but that's more the exception than the rule . We could easily do things way better and have both a better economy and government services and higher qualiy of life.

[@danielpye7738]

We could have things a lot better. But we also have a culture of relying on government “solutions” with the spending that comes with it like never before. It’s a disaster. We need less regulations and more people taking risks within the economy. But that type of ambition has been stamped down especially by the last government.

[@raywheeler3135]

No thanks Daniel. The last time we had less regulation and allowed others to take more risk the global banking system collapsed

[@danielpye7738]

If you know anything about the 2008 crash you would know that was forced risk. The hand of the government is very clear. The mortgage market was/is still the safest play a bank can do.

[@raywheeler3135]

If you knew anything about 2008 you would know that bankers were not forced to issue subprime mortgages. Nor were they forced to repackage them as risk free products knowing they weren't and then sell them to the next sucker down the food chain. This sort of behavior was impossible until the Glass-Steagal Act was repealed.

[@danielpye7738]

Banks were forced to lend to riskier mortgage holders with various programs over decades. Even old George W Bush implemented housing policies aimed at “affordable housing”. ADDI was his program and guess what, funding was stopped in 2007. If people had carried on paying their mortgages there would have been no crisis. The securities would have been fine if not for mortgage defaults in the housing crisis of 2006 onwards.

[@andrewking9435]

Please say more about RBNZs intentions with Digital currency. Whos driving this and why?

[@nigelwoolfmobile]

WEF

[@DanielleA2023]

Managing inflation by increasing unemployment, reducing wages & high rents rather than managing inflation by taxing the masaive profits of corporations & supermarkets & banks means he's part of the problem

[@andrewking9435]

Orr doesnt like housing investment, but does like construction growth suppporting GDP

[@raywheeler3135]

Those are not necessarily the same thing as much as you would like to pretend they are

[@whateverbro9002]

This guy and his team have done an incredible job for NZ and he won't get any recognition because he made the tough calls and got it right.

[@nicktaylor7680]

They won't get the recognition because the media keep parroting right wing talking points until they become "facts".

[@JohanThiart]

This guy has learned a lot …. This is the best interview that he has ever given. What he says made some sense for a change …. but then again, he is batting first his job so he has to keep his eye on the ball. Why he would go into climate change and that type of “garbage” when he so eloquently explained his mandate …..😂 He nearly convinced me that he is capable.

[@shaneshawwilliams4512]

@@JohanThiart Because its a real major issue and all banks , insurance companies and others are worried about it and making moves to adapt to it and stop pumping green house gases of 8 billion people and their industries into the planet. Grow up

[@JohanThiart]

@ think again …. who is leveraging off these sentiments … there you go, trust them and fail to see what the geological history tells us. But the models predict ….. right. The models do not predict that the AMOC will shut down, it actually predicts what will happen once the AMOC shuts down …. Armageddon …. end of the world …. No one has ever predicted that … right? Three consistencies in all these predictions - none came to pass, all are alarmingly close in the future, more and more caveats …… Go out and buy yourself an ev and solar panels …

[@BiscuitBamford]

Umm if creating a property bubble and causing 12 billion dollars in losses for taxpayers due to speculatively buying bonds at the peak of the market were the right calls, what would have been the wrong ones? 😂

[@Harroi]

The propertied, property investor, and property trading class get their windfall, the renter class gets the ladder pulled up.

[@NatalieVanVeenNatalia]

Cough cough GROWTH 😳😳😳😳talk about disconnected to the reality experienced by most Kiwis! Unacceptable number of businesses forced into liquidation and forced job losses!!! We need Jack to jump in here!!!!!

[@stephens896]

Adrian Orr would be better off in Government than lots of the people running finances at the moment. His background as the Superfund chief aligns with his comments that NZers need to get over houses and think more sophisticated, more productive, and more supportive of business and infrastructure investment than trading houses. All in camp Orr.

[@SuperShell33]

Government is responsible for the over inflated house prices, not the RB. The incentives of being able to write off any mortgage interest as a loss, together with no capital gains tax on investment properties, gives investors the best bang for their buck. Every other investment gets taxed. And you can't blame investors for playing the hand they've been given. The RB can only fiddle around the edges of the housing market.

[@danielpye7738]

Let’s go back to 2020. Covid, lockdowns and housing scarcity were the buzzwords. And Orr gave banks 0.25 rates to hand out to people all ramped up to splash the cash as soon as Level 3 or 2 was announced. And you think it wasn’t deliberate?

[@Annaspanner]

Great questions and answers, q&a. So glad Jack tame didn’t do this one. Although Orr is widely criticised,I learned quite a bit about the various factors influencing monetary policy etc. Thanks,

[@andrewking9435]

RBNZ needs to ease up on banking regulations, they need not to include climate change , ESG and DEI targets

[@jackielone1035]

They are puppets of IMF, and 3 hedge funds owning 80% of the market. People are just units of labour to control.

[@andrewking9435]

Tax cuts arent stimulatory, it simply citizens spending their own money rather than the govt. And for most people it was only equivalent to cup of coffee or couple of beers

[@danielpye7738]

True. Though people think they have a right to your earnings. It’s quite amazing isn’t it.

[@truthseeker5911]

Where did the money come from in the first place? We spend the governments money and it doesn't spend ours.

[@colinboggust2950]

He😅 answered every question with an easy to understand explanation

[@dianeantill9653]

Orr created the inflation by printing when he didn’t need to, any honest economist knows that and has spoken about it. He takes zero responsibility for his mismanagement and labour gifted us with another 5 years of his mismanagement. It’s time we got real experience back in the reserve bank.

[@ideaWorld403]

Bang on.

[@truthseeker5911]

QE doesn't create any new money, its an asset swap.

[@topshotmx8]

How the f**K this guy still has a job I have not idea. Is he the best there is in NZ?

[@2wheels2everywhere22]

He's an egomaniac with no concept of self analysis. Common knowledge that he mismanaged the financial response to covid but his best analysis is "no regrets". Shameful.

[@chrismckellar9350]

Well said by an armchair economist.

[@topshotmx8]

@ you don’t know me from a bar of soap

[@chrismckellar9350]

@@topshotmx8 - So you are saying that you are not an armchair economist?

[@shaivahnparsons3244]

The single best things NZ can do are introduce a land value tax (targeting property investors and speculators without affecting investors in companies like a CGT would) and remove all barriers to building more homes. Those will together raise supply drastically and bring demand under control which are the factors that influence property prices. The only losers are existing property investors and its a worthwhile sacrifice for avoiding a stagnant economic future for NZ.

[@discodave587]

It seems to me that the reserve bank should be increasing interest rates to bring house prices down, but they are doing the complete opposite. If house prices were part of the CPI house prices would be sorted out almost overnight. But too many people in power have an interest in property prices raising to infinity uninterrupted for all eternity.

[@buffalobill2874]

IMF = international monetary fund OCR = Official Cash Rate

[@N_z41]

Stop with the fif rules that tax unrealised gains on foreign assets and people might decide to invest more in these instead of housing.

[@andrewking9435]

Govts and councils already taxing and rating citizens plenty for infrastructure. But projects rorted by contractors

[@raywheeler3135]

Precisely why infrastructure projects should not be privatized. Government can't rort itself.

[@andrewking9435]

@@raywheeler3135 yes govt depts capable of wasting lots of money. Mentality is the same; its taxpayer money..who cares

[@raywheeler3135]

Well Andrew. Fletcher Building have been remarkably successful at mismanaging their finances and destroying shareholder value. Private enterprise doesn't always perform better than government. In fact often private enterprise performs far worse

[@danielpye7738]

Fletchers is more like governmental bureaucracy than a building company. You need a piece a paper to drill a hole on their sites now. And people who subcontract will rightly price accordingly.

[@TheEnzedone]

So you’re a good little kiwi and you do what the government tells you. Save! You go to work you get paid and then the government taxes you, great no problem you think to yourself. The country needs your tax dollar to build and maintain this lifestyle you enjoy. So then you put some of that money into a bank. A bank, which is a private business that you go into an agreed financial contractual arrangement with. Nothing to do with the government as it’s between you and the bank. So…….. You start saving and find you have a good bit of money saved up so you go back to the bank and set up a high interest savings account. Yet another contract between you and the bank, no one else! Years past and you realise you’ve done well, you decide to pull that money out from that private contractual agreement and use it as you see fit. BOOM! NOT SO FAST THERE PLEBEIAN say the long arm of the government. Sorry what! You’re thinking. Yeah sorry boy, but you know that money that you’ve been piling away in that private bank for all those years? You know, the money that we already taxed you on? Yeah that, we’re gonna double dip and tax you again you see because we’re greedy, desperate assholes. So there you have it, that’s why you never store your taxed money again, that’s why you buy another house.

[@andrewbaldwin4454]

The RBNZ had the highest inflation rate at 7.30% in 2022Q2 since 1990Q2. This is the highest inflation rate ever as the New Zealand CPI in anything like its current form, since it is only with the September 1999 quarter that it excludes the highly volatile interest component. Just the same Governor Orr wants to take a victory lap because the peak inflation rate of New Zealand at its post-2000 peak is lower than that of other unspecified central banks. He just had to pump up the money supply because the New Zealand government was locking down the country ruthlessly hard and that cost a lot of money. If he hadn't monetized that spending, a lot of which should never have occurred, might the New Zealand not have pulled back on it? He really should give his policies a little more thought.

[@edawg654]

Globally we are at a point where growth is measured by liquidity increase. It’s a joke. ❤

[@runforrestrun1965]

It’s a simple thing to fix. Make people who choose to invest in private property houses (not their own home) pay more tax than those that invest in businesses that create jobs and add to NZ GDP. This will give them a choice and will free up housing for new buyers. NZ will be better off if investment dollars are into businesses or startups etc. Giving tax breaks to investors to buy 2nd, 3rd 4th or more houses does nothing for production, gdp or help home buyers. Get the tax law phased in over 5 years and you will see far more housing on the market for all and imagine the millions of dollars freed up to be invested in NZ companies…

[@soggymarshmallow]

Non-property market investment vehicles suffered a huge PR hit after Black Monday (1987) and never really recovered. Note that Don Brash ran the RBNZ during that period.

[@2wheels2everywhere22]

Even the layman knows that the RB's quantitive easing was about 4 times as large as necessary. It showed up in a massive increase in bank deposits and did not circulate through the system. Orr is a disgrace. He should have resigned along with Ardern. Being an egomaniac he's hanging on to power as long as he can.

[@julians472]

Totally agree. He has as much understanding of what causes inflation as Bidens chief economist who couldn't explain QE

[@nicktaylor7680]

Love how the Governor gave RNZ a history lesson and made them walk back their National party talking points.

[@ColleenWashington-m3s]

Thanks for sharing such valuable information! I have a quick question: My OKX wallet holds some USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). How should I go about transferring them to Binance?

[@joefarrow487]

Outlaw overseas investment housing biers. Give them 90 days to sell up. Force banks to sell all houses at auction within 90 days of foreclosure. Get rid of the BS bribe system for building new homes. Make all downtown retail new builds have housing upstairs again

[@habububu3393]

Its a bit rich for someone who earns double the average net worth of a NZer a year to criticise us for investing in property and trying ro grow our wealth.

[@chrismckellar9350]

Your greed is one of factors that houses are artificially high. Property buying/investing does create material economic and productivity growth.

[@habububu3393]

@@chrismckellar9350 So how have/ are you growing your intergenerational wealth? Or are you just someone without means putting someone else down trying to get ahead?

[@habububu3393]

@chrismckellar9350 I'm curious to know how you have grown your intergenerational wealth? Or are you just a have not who puts down people who work hard to get ahead?

[@chrismckellar9350]

@@habububu3393 - it seems that you are a baby boomer or Gen X who had wealthy parents helping to fund your 'inter-generational' wealth or that you work hard in good paying job before neoliberal economics started to destroy this country.

[@connorshelp301]

I'm currently a student studying to become a psychologist and working in hospitality at the same time. Getting ahead is rough, especially for divergent students like me just trying to start...

[@AnnSmith-u9c]

This guy is treasonous!

[@PeteDakin]

Perhaps it's time to bring in 2 official base rates. A higher one tied to domestic property lending. A lower one for everything else.

[@andybell2516]

My 2 cents, or 1 cent, this man is straight up, precise and understands economy’s and his role

[@patrickflanagan317]

Thank God we had good leadership during the pandemic, The government and reserve bank did exactly what needed to be done. Unlike many other developef countries, we had low death rates and no depression. You leaders get a big👍from me, love ya work!!

[@edawg654]

Do you understand that Covid caused the largest gap increase of inequality directly from money printing globally. It’s debased workers salaries and pumped assets of the wealthy. It’s nothing to celebrate

[@stee12318]

When the IMF is saying you are doing a good job that’s code for you’re in their pocket. NZ needs to modernize it’s economy, put Bitcoin on their sheets, create an investment fund like Norway, reduce government waste (just look at local projects in detail and there’s tons). When inflation is above 2%, below 2% growth gdp is essentially no growth. Fiat has economically stripped this world. And the western economies will continue to print out the middle class as the world uses other currencies than the USD for trade. I could be wrong, but the signs are there: The east will rise and the west needs to adjust what it’s been doing for the last 70 years

[@roadrunner911]

The housing market needs significant correction, with a focus on advancing technology and industrialization for sustainable growth.

[@cameronlabone6050]

Great tone. Very interesting to listen to. Oh well how about those gold prices instead of house prices ehhhhh? Lets get some kiwicando small businesses making local again... what's it 4/5 don't make it to 5 years? Must be the overheads eh?

[@barrygeary9362]

This doesnt stack up Gov is spending more an borrowing more than Labour did so whats new

[@taylor3014]

Not as good as Luxon's interview recently. Perhaps adding a few more let me tell yous and lying almost continually he might match our fantastic MP.

[@julians472]

Most people in NZ dont understand how the monetary system works! So Adrian Orr can say anything he likes! NZ now has record govt debts because of his LSAP. Costing every NZ household over 6000.00 in interest payments last year. The BIS is top dog,and RBNZ a little puppy

[@truthseeker5911]

QE doesn't increase government debt it reduces it. The reserve Bank bought back the governments debt.

[@compound7269]

Deflation would have suited me as a teacher without a house 😂

[@timothychimony8936]

The rbnz helped the banks make so much more money than they needed to, the kicker it was the aus banks. Too much lsap, too long flp

[@barryballsit4944]

Dear oh dear, she left out Ukraine war when asking abt performance on inflation, the Governors forebearance at this elementary error was instructive, patient man

[@trevorlynds6869]

People want to own their own homes so they’re not at the behest of the landlord changing the circumstances so you end up moving out and having to find another rental. Buying into your own home gives you stability at the same rate as paying rent, in most cases. So don’t criticise people for wanting a life of more stability with a roof over their heads.

[@sirknight22]

Remove taxes from the stock market and educate people how to use global businesses to gain investment wealth,

[@perryanderson9103]

Give him the sack

[@michaelferguson651]

Too many short term thinkers in a long term game, economics, investing and accounting should be compulsory in education from the age of 5 and up. Most people can't even run a household efficiently beyond week to week let alone comprehend personal, national and global finances 🙄

[@magamike1800]

He followed Ardern and Robbos orders and got another 5 years in the job.

[@chrismckellar9350]

It seems that you are upset than as an armchair economist you are not the RBNZ Governor.

[@magamike1800]

@@chrismckellar9350 Screw that for a job.

[@mws48]

I know it’s geeky but this guy is my favourite central banker! Great communicator of what is generally misunderstood by non-economists.

[@nigelwoolfmobile]

He doesn't rate very highly with other economists. Many of his colleagues just ghost the guy. Fk knows how he got the job, or manages to keep it.

[@cindykenyon8860]

War in Ukrainian ....had no effect in NZ at all.......the 23 apples that fell off a tree in the Hawkes bay did not cause the price of every product in a super market to go through the roof..we don't grow aspirin in the Hawkes bay.....or loaves of Bread.....what we had was a dumb Labour Govt that doesn't even know how rip off Business run....... oh so bad was it for Super markets in Nz,,,that one of them spent million repainting its name on itself.......do you think it went out one day and borrowed 400million. to do that.....oh no...they had a Tax problem......with all the money they had ripped of NZers..........there are still too many 2 legged sheep in this country...lets hope being at School will teach the next lot.

[@Goodkiwibloke]

What an arrogant and pompous person he is. No regrets for causing catastrophic financial damage to countless people, mainly first home buyers. He is the first RBNZ who is reactive in his approach. All his predecessors were proactive, because they realised that monetary policy takes 12-18 months to work. But Adrian never got this memo, so we have had years of knee-jerk reations with wild swings in interest rates and unemployment Listening to him justifying his actions (or lack of actions) sickens me. It is vial that he is patting himself on the back

[@mattgordon9179]

Infrastructure! New high Tech Cook strait ferries are our Highway One. Route one 0 one and should be looked at as so. Future proof productivity for all New Zealanders instead of this second hand Toyota Carola mentality.

[@druckerman247]

Time buy a 4th house and provide another quality rental property for nzers needing a house. That's right, landlords aren't the problem.

[@shagsheep8832]

NZ has vast area's of land. New towns could easily be created with cookie cutter solutions to put the infrastructure in place and keep the price down. Halting the absurd population growth would vastly help as well. But no. That would depreciate prices.

[@bop-ya-good]

What a jerk, blaming investors.

[@SoulsofMist]

Oh the poor investors, won't someone think of the poor investors. 😆

[@bop-ya-good]

​@SoulsofMist really? Ru going to find a home for people to rent? Or just complain.

[@SoulsofMist]

@@bop-ya-good Not complaining, making fun of your comment crying over accurate criticism.

[@barneyboy2008]

​@@bop-ya-good so you're doing it out of the goodness of your heart. I think a sainthood is in order.

[@bop-ya-good]

@barneyboy2008 I agree, I am part of the solution. Taking the risk to benefit my fellow man.

[@dracovenit9549]

I think RBNZ was right.

[@JamesClark-cg1qk]

He pushed rates too low for too long, then kept them high for too long. He is dodging responsibility. And as for house prices, they are cheap in NZ for what you get, and only expensive relative to incomes. And they are low because of policies unfriendly to business. But Orr is a Lefty so will be blind to all that.

[@aaronahchee7484]

No rent control, or Captial gains tax, plus limited houses. Makes housing very lucrative. Not to mention you make money on borrowed money. I don’t think a bank would loan someone money to invest in shares or stocks. I’m surprised he doesn’t know this 🤦🏽‍♂️😂😂

[@AAL3087]

How about bitcoin instead? That seems to doing well? Like the opposite of buying tangible property. Joe much can I borrow to leverage like Saylor does?

[@hkuka7150]

This guys not as stupid as i first thought 14.25 he nailed it. Housing investment market is a lazy market and does nothing for our economy. .

[@jackielone1035]

Masters of shifting blame on people, and you fall for it. Corporations including banks make record high profit, pay less wages, and his printing money was wasted by 80% increased government spending. But he says and you nod!

[@goyeem]

Prints money - Gives it another name - Puts interest way up. What a scam

[@jnicolettebailey]

Could be be any more WEF?

[@benmunckhof-swain4493]

No offence to the reporter, but I wish JT was the interviewer here

[@PedrodaSilva-gm5ms]

Has not got a clue. Doing exactly what he is told.

[@dennis-qu7bs]

CAPITAL GAINS TAX

[@chrissolutions]

Why?

[@charleswalker2484]

blame the bankers not your fellow citizens. you're squabbling over crimes while the pie is eaten in front of you.

[@nigelwoolfmobile]

No country ever taxed it's way to prosperity. What they need to do is to make other investment vehicles besides housing more attractive. The housing investment problem came about from the stock market crash in the 80s scared investors away from everything except cash and housing.

[@darrelllingman63]

Not profitable for Property Companies to build affordable housing. They can build them look at Papamoa built plenty of houses that are affordable but on leasehold land, basically renting the land for your house. They can build affordable large home developments they simply don't want to, as its not profitable and no incentive for them to do so.