In a classic case of the left being at war with itself, the very parties who called for the RBNZ to impose regulation on mortgage lending now suddenly find themselves asking for restrictions of rates to be lifted. The impact of regulation was nothing if not consistent with its centuries old reputation – it hurt the very people it was designed to help – but it made a few people “pulling the levers” “feel good” and feel as if they were “doing something”. And they were. So now people such as the Mayor of Auckland want the ability of Pasifika communities to be able to take on a bit more risk to be restored. Some financial education, lowering of local body rates and a commitment not to intervene again would reduce that risk – at least at the margin but there is no sign of that.
I suppose the best one can say is that the learning turnaround has been reasonably swift.
See the Radio New Zealand article Here (browser back button to return to Eye2theLongRun)