New Zealand only a stones throw away has been enjoying the same recession proof economy as ours until recently, here's an article that explores the reality of their housing ponzi bubble...
In years to come New Zealanders will look back on the winter of 2010 as the moment we finally realised the last decade of growth was a sham.
It will be the moment when it dawns on home owners, small business people, retailers and real estate agents that our household debt has hit saturation point and we just can't swallow any more.
It will be when we realise that without that extra debt our economy doesn't grow much, unless we can produce more useful goods and services for each hour that we work.
Our productivity hasn't grown much in the past decade and now we can't disguise it any more by spending borrowed foreign money.
The giant Ponzi scheme of adding more debt to buy more houses (or spend more on the same houses) then relying on capital gains to make up for it only works as long as some sucker is jumping in at the bottom with yet more debt.
It is now clear that New Zealand has been in a twilight zone since the onset of the global financial crisis two years ago, wondering why everything seemed the same.
Unemployment didn't rise much, house prices dipped and then bounced, and GDP seemed to return mid last year.
But this winter we discovered that the tide was going out, and in the past six weeks we have collectively discovered that the economy is naked without the extra debt.
