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Comments on: Credit crisis mark 2: How will it impact on New Zealand http://www.tvhe.co.nz/2008/09/18/credit-crisis-mark-2-how-will-it-impact-on-new-zealand/ The Visible Hand in Economics Fri, 26 Sep 2008 10:30:01 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: Vintage Filings Business Blog » Consumers Unsure Where to Turn in Auto Leasing Market http://www.tvhe.co.nz/2008/09/18/credit-crisis-mark-2-how-will-it-impact-on-new-zealand/#comment-2497 Fri, 26 Sep 2008 10:30:01 +0000 http://tvhe.wordpress.com/?p=1177#comment-2497 […] the credit crisis at full tilt and new car leasing programs on the endangered species list, consumers are uncertain […]

]]> By: Consumers Unsure Where to Turn Amid Upheaval in Auto Leasing Market | Financetorial http://www.tvhe.co.nz/2008/09/18/credit-crisis-mark-2-how-will-it-impact-on-new-zealand/#comment-2498 Wed, 24 Sep 2008 15:46:28 +0000 http://tvhe.wordpress.com/?p=1177#comment-2498 […] the credit crisis at full tilt and new car leasing programs on the endangered species list, consumers are uncertain […]

]]> By: Illegal Immigration http://www.tvhe.co.nz/2008/09/18/credit-crisis-mark-2-how-will-it-impact-on-new-zealand/#comment-2494 Fri, 19 Sep 2008 20:18:29 +0000 http://tvhe.wordpress.com/?p=1177#comment-2494 There is much pleasure to be gained from useless knowledge.BertrandArthurWilliamRussellBertrand Arthur William Russell, 1872-1970

]]> By: Ron Paul http://www.tvhe.co.nz/2008/09/18/credit-crisis-mark-2-how-will-it-impact-on-new-zealand/#comment-2495 Thu, 18 Sep 2008 22:56:57 +0000 http://tvhe.wordpress.com/?p=1177#comment-2495 Le sens commun n’est pas si commun. [Common sense is not so common.]FrancoisMarieArouetVoltaireFrancois Marie Arouet Voltaire, 1694-1778

]]> By: Matt Nolan http://www.tvhe.co.nz/2008/09/18/credit-crisis-mark-2-how-will-it-impact-on-new-zealand/#comment-2492 Thu, 18 Sep 2008 02:26:29 +0000 http://tvhe.wordpress.com/?p=1177#comment-2492 “Presumably there’s also an asset price channel”

The old wealth effect aye, good point. Fundamentally, we have to ask what peoples expectations of assets prices were, and what they are now – I suspect that the response would be a lot less volatile than the market price.

However, if there has been a dip then that would be material – for those that own the assets. A countervailing factor would be the lower relative price of assets for those who do not own them – that comes with its own income effect 😉

“And I’m not convinced this is an asymmetric information problem, banks aren’t lending to each other because they really might fail, not just because they can’t credibly signal that they’re not going to fail”

But this only matters if the business that are going to fail will only do so because other banks aren’t loaning to them (so the projects they want to take on do have value) – which is an asymmetric information problem.

If the bank was going to fail in the situation of full information – then they have to go anyway. But how many institutions are like that in NZ (now that most of the finance companies are gone).

]]> By: Business blog » Blog Archive » Credit crisis mark 2: How will it impact on New Zealand http://www.tvhe.co.nz/2008/09/18/credit-crisis-mark-2-how-will-it-impact-on-new-zealand/#comment-2491 Thu, 18 Sep 2008 02:24:06 +0000 http://tvhe.wordpress.com/?p=1177#comment-2491 […] Read the rest of this great post here […]

]]> By: CPW http://www.tvhe.co.nz/2008/09/18/credit-crisis-mark-2-how-will-it-impact-on-new-zealand/#comment-2493 Thu, 18 Sep 2008 02:19:33 +0000 http://tvhe.wordpress.com/?p=1177#comment-2493 Presumably there’s also an asset price channel. And I’m not convinced this is an asymmetric information problem, banks aren’t lending to each other because they really might fail, not just because they can’t credibly signal that they’re not going to fail. Even if the Reserve Bank maintains real interest rates, it might still make sense for NZ banks to try and shore up their balance sheets as much as possible.

]]> By: Interest Rates » Credit crisis mark 2: How will it impact on New Zealand http://www.tvhe.co.nz/2008/09/18/credit-crisis-mark-2-how-will-it-impact-on-new-zealand/#comment-2496 Thu, 18 Sep 2008 02:13:13 +0000 http://tvhe.wordpress.com/?p=1177#comment-2496 […] Read the rest of this great post here […]

]]> By: Prison Planet http://www.tvhe.co.nz/2008/09/18/credit-crisis-mark-2-how-will-it-impact-on-new-zealand/#comment-2490 Thu, 18 Sep 2008 02:11:31 +0000 http://tvhe.wordpress.com/?p=1177#comment-2490 It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.WarrenBuffetWarren Buffet

]]> By: Cartoon: Credit crisis and NZ « The visible hand in economics http://www.tvhe.co.nz/2008/09/18/credit-crisis-mark-2-how-will-it-impact-on-new-zealand/#comment-2489 Thu, 18 Sep 2008 01:46:33 +0000 http://tvhe.wordpress.com/?p=1177#comment-2489 […] captures how things fell at the moment – I will have a post up on the crisis later in the day (here). Possibly related posts: (automatically generated)Washington Post Editorial cartoon parodies […]

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