Rprc April13 Kiwisaver

Why de-leveraging and the costs of retiring baby-boomers will spark a Super debate
RPRC Breakfast, University of Auckland, April 13

We (and the world) can’t afford our gold plated pension schemes

It’s all about de-leveraging

Deposits and LVRs

With 95% LVR Leverage 20 to 1$50k = $ 1mlnBut 80% LVRLeverage 5 to 1$50k = $250k

Giant debt boom

The growth was false

Bigger than 1929

Lending collapse

Big fat ATM

Same here too

Bubble pumped up

Way too much air

So what happens now? Deleveraginghas only just begun

Pass the parcel

7 years long25% of GDP= NZ$45 bln

Not sustainable

Indebted future

Saving more

Weak spending

Weak lending

Slow turnover

House price fall?

Beep Beep

Rising interest rates

Variable cheaper

Mind the Gap

One big boom

Battle of generations

So many old, sick people

Indebted future

A debate is required

Who will pay and how?

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by Bernard Hickey on Apr 12, 2010