Tuesday, July 14, 2009

Absolutely, Positively, Bollard (is he smoking something?)

Bollard upbeat on early recovery
New Zealand is likely to lead the world out of the recession, Reserve Bank Governor Alan Bollard says. In his most upbeat remarks in months, Bollard told a Hawke's Bay audience yesterday that New Zealand had a rare opportunity to "rebalance" its economy. "Early signs of global recovery have now emerged. We have avoided a repeat of the Great Depression," Bollard said. "The New Zealand economy has taken knocks in this crisis, but some form of recovery is now on the horizon. Our opportunity is to use this time to rebalance the economy for the medium term." He said world growth would probably be subdued for several years, and fiscal stimuli would be necessary for some time.

Ummmm – isn’t this the exact same Dr Bollard that told us just before Christmas last year that the recession was over? 7 months later he’s now telling us that it’s over again? Wow Alan, and what a ringing endorsement, we’ve just avoided a second great depression but recession will be here for several years, hardly time for a party folks. Aren’t these ‘green shoots’ really just dried snot and pretending that the next several years will be anything other than the most difficult time our Country has seen since the Great Depression is absolutely, positively denial.

Bollard is starting to remind me of the desperate way the Real Estate industry incessantly screams each month that ‘it’s never been a better time to buy’. People with a vested interest in the ‘confidence’ of the economy are doomed to become cheerleaders on the sideline trying to pacify angry spectators as our team gets thrashed 100-0. Honestly if the Reserve Bank Governor has been on the Titanic while it was sinking, he’d be assuring everyone that there was never a better time to buy a cabin, that the owner was motivated to sell and that you would have great sea views.

Let’s see how NZers joining the dole at 1000 a week feel about Bollard’s optimism.

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