The financial world seems to be in a state of panic at the moment as a result of the turndown in China.

As far as Britain is concerned, trade with China represents quite a small segment so things are not quite as serious worldwide as the markets believe.

China's economy is changing for all sorts of reasons – one of them is because the government can no longer indulge in printing money and inflating the cost of housing.

If China's economy improves by five per cent, it will add something the size of, say, Belgium's economy to the world economy so New Zealand shouldn't panic.

China doesn't have to grow very much to make a big difference. If we don't panic and lose all our money, things will settle down soon. Our major concern should
be house prices in Auckland.

NZ's government is blind to what that can do to the economy if too large a correction takes place and the banks collapse.

Key and his cronies will have allowed, and maybe one could say caused, the collapse of the NZ economy by not taking steps to stem the heat of those house prices if a large correction takes place.

Lowering the cash rate was the most stupid thing anyone could have done because that made easier for the investor to borrow even more money for less and so pay more for a house in Auckland, so add heat to the spiralling house price. Any correction should have been left to the falling dollar.

A Bourne, Tauranga