Last Thursday, The Reserve Bank had announce a record low cut to the OCR - now sitting at 3.5%

The effect of this is many of the major banks had cut their interest and mortgage rates - in an attempt to boost the economy by encouraging people to get debt going and pump more cash into the market. But question is, will people want to get into debt knowingly they may just lose their jobs in months ahead? Tricky.

Many banks have cut their mortgage rates to a low range of around 6%, but just as I was leaving work on Friday, a circular email came from BNZ announcing a mortgage rate of 5% ish. That's insane, but still its nothing compared to the States where its almost close to nil.

But since then the global economic picture has darkened virtually by the day. In one 24 hour period this week there were 85,000 job losses announced around the world. Predictions rise up to about 50 million jobs are prone to be axed in the coming year and a report came from the UN announcing that it might take the UK 20 years to recover.

``Unemployment rates will certainly continue to rise, but peak well short of the levels reached in the Depression. Then, unemployment rates rose well above 20 percent in many cases.''


Watching the news, there was this cover story about Japan Airlines CEO- taking a cut on his paycheck rather than his staff, demolished his office to an open plan style, and even do lowly jobs on the aircraft like stacking magazines. This type of management encourages his employees to be closer to him, to voice up good opinions and be open in communication, that everyone is in the same boat, not only a top-down thing. A truly inspirational boss, I must say.


So all that is doom and gloom out there, be wary of where you spend your money in the next coming years you homos.