What the Credit Crunch means for
New Zealanders, for Interest.co.nz, and
for Advertisers
It’s all about Interest Rates
and House Prices
Big numbersNet worth $634 blnHomes = $614 bln
Mortgages=$170 blnDeposits = $90 bln
Big numbers1.3 mln mortgages
~1 mln deposits$260 bln churnsevery 6-18 mths
Big decisionsWhich bank or NBFIBest rate? Safest?To Fix or to Float
Rates up or down?
More big numbersUS$4 trln of losses
US$60 trln of deleveraging
Worst since WWIICapital shortage
Small numbers35,000 trade shares
NZ$9 bln held directly in shares
NZ$22 bln in managed funds
Kiwisaver is set and forget
Household finances Housing value
Direct NZ shares
Direct foreign shares
Managed funds
Mortgages
It’s all about Interest Rates
and House Prices
Four key datesin recent history
March 14, 2008Bear Stearns
implodes
July 23, 2008Hanover Finance
collapses
Sept 14, 2008Fed lets Lehman
go bankrupt
•fed letting us go•stuck at jfk•we r so f**cked•u r so f**cked•market so f**cked•we r all f**cked
March 12, 2009RBNZ cuts OCR 0.5%
to 3%Bollard signals rate cuts
near an end
•Interest.co.nz•120,000 readers•1 million pages•54% male•62% earn over 80k• 50% managers
•What’s different•More engaged•Faster, deeper•Big decisions•Information crucial•It’s crunch time
•Decisions online•Information online•Cost effective•Acquisition chain•Branding online•Get your feet wet•Build online
It’s all about Interest Rates
and House Prices