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