The necessary recession.

7 February 2025

The Governor of the reserve bank made it clear to the finance committee that he was going to engineer a reccession much to the committee's angst. The committee really did not really understand why a reccesion was necessary as part of the economic cycle. The recession is continuing into 2025.

The recession was necessary as the market got out of control in particular the property market and inflation was trending up to dangerious levels.

Therefore the OCR needed to be increased to cool demand the reserve banks words were " Cool your Jets" " Drop your Prices"

over the period to 2025 the jets were cooled and prices are continuing to drop.

The year 2024 is when the ecomomy finally started to come under the control of the RBank NZ. Property prices are still to high an as at Feb 2025 property prices are falling. It is possible that property prices will continue to fall in 2025 with a possible upturn in 2026.

Part of the reason for the recession was to weed out, non performing debt, over in debtness, unprofitable companies, and literally clean out and clean up the economy, a bit like a wreaking ball throught the

economy a bit like a wreaking ball. It is called creative distruction.

The recesssion is paving the way for good times ahead and for those who can see the plan working and the bottom of the market in 2025 will be in a position for recovery 2026. As always there are deals to be had at anytime. Recovery 2026 is the beginning of growth and more opportunities ahead.

The recession was necessary to create the good times ahead. The benefits will soon appear to those who are viligilant and monitoring

the economy day to day.