Iceland’s bankrupt: Is this where NZ is going?

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So we all know that Iceland is bankrupt – what is the situation like for New Zealand?

A few of the stories I saw when Iceland first went into massive trouble were here, here, and here.  At the time the comparison was so popular that there was a Dom Post article on the risks of New Zealand’s current account.

However, I think by now it is obvious that I am not going to agree :P   Our stock of debt is equal to one years income – I don’t see how this is unsustainable!

So tell me – are we heading towards bankruptcy, are we heading towards a bumpy ride, or are we heading towards more “golden weather” :)

  • John

    If farm prices collapse offshore lenders will be out of pocket. Maybe they will show up at Dept of Immigration with their gumboots?

    http://www.interest.co.nz/ratesblog/index.php/2008/12/16/video-dairy-bubble-has-burst/#comments

  • http://www.tvhe.co.nz Matt Nolan

    “Maybe they will show up at Dept of Immigration with their gumboots?”

    Are you suggesting that foreign lenders will move here to work the farm WITH gumboots – I do believe that this constitutes an inflow of productive capital :)