One of the more idiotic headlines I’ve ever seen

croaking cassandra

Of course, there is plenty of competition.  But this isn’t the latest on Kim Kardashian or Prince Harry, or whatever.  It is about house prices.   And this time one can even, sort of, excuse the media outlet concerned

According to the Herald,  New Zealand housing market 40% chance of going bust, says Goldman Sachs.  

Sounds bad.  Or perhaps promising if you care about the prospects of your kids being able to buy a house.

But quite what does “bust” mean here?  Well, not quite what you or I might think of us as a bust.

Goldman, Bloomberg said, defines bust as house prices falling five percent or more after adjustment for inflation.

A five per cent fall in real house prices is a “bust”???  In what sort of alternative universe?   If the Reserve Bank does its job and keep annual CPI inflation around 2 per cent, unchanged nominal house prices for 2.5…

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