Iceland’s bankrupt: Is this where NZ is going?
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 😛 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” 🙂
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
“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 🙂