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The Bank Of England Clueless Thread

2,534 posts in this topic

17 minutes ago, TheCountOfNowhere said:

Carneys hung the whole country out to dry IMHO

Indeed - he's played a massive and likely an overwhelming role in that although it's also fair to say that the bankers and politicians and some would also say the corporate sector have played a role in that as well.  They each should take due blame.

Edited by billybong

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You mean........ Surely not....... Less than 3 months after headlines proclaiming Carnage as the saviour of Britain he's going to get butt-fooked on live tellybox as scapegoat numero uno?!

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Should be news of the Treasury Committee inquiry announced a few weeks ago:

MPs to hold inquiry over Bank of England’s use of QE

Andrew Tyrie, the Conservative MP who heads the committee, announced on Thursday that MPs would hold an inquiry next year into the the effectiveness and impact of the BoE’s monetary policy — including the quantitative easing programme — and the issue of political interference.

“Interest rates are stuck near zero, the Bank of England has used increasingly unconventional forms of quantitative easing, and inflation has been below the two per cent target for three years,” Mr Tyrie said. “The efficacy of monetary policy or otherwise, its unintended consequences, and its prospects, need careful examination.”

https://www.ft.com/content/cd9fd330-c838-11e6-9043-7e34c07b46ef

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^

Quote

 

...and inflation has been below the two per cent target for three years,”  ...

 

Perhaps they should also consider how inflation is measured - for example which items are included,  which are excluded and how they're weighted etc.

Also the remit - they continually brag about the strength of their employment figures so whether or not that should be a significant issue now is something else they might consider. 

Edited by billybong

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12 hours ago, billybong said:

Perhaps they should also consider how inflation is measured - for example which items are included,  which are excluded and how they're weighted etc.

Also the remit - they continually brag about the strength of their employment figures so whether or not that should be a significant issue now is something else they might consider. 

I'd like it if this inquiry was fairly narrowly focussed to be honest, and issues like inflation measurement were dealt with in parallel. I'd like to see a conclusion that the BoE has been acting in direct contradiction of its remit, but that'll remain a nice dream. Nevertheless, it's all a move in the right direction.

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Most interesting point made so far IMO - Martin Taylor of the FPC:

"It will be difficult to say what risks occur out of Brexit as opposed to what might have happened anyway".

He knows something is afoot.

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On 10/01/2017 at 3:03 PM, billybong said:

Indeed - he's played a massive and likely an overwhelming role in that although it's also fair to say that the bankers and politicians and some would also say the corporate sector have played a role in that as well.  They each should take due blame.

It's easier to hang one man and make an example out of him. 

 

So, pick a scapegoat.

 

QE/Low IRs/Unregulated banking sector should not be allowed.

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14 minutes ago, Noallegiance said:

Most interesting point made so far IMO - Martin Taylor of the FPC:

"It will be difficult to say what risks occur out of Brexit as opposed to what might have happened anyway".

He knows something is afoot.

The london housing bubble collapse has been apparent for some time. I dont any amount of QE can save it when local wages are where they are

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17 hours ago, Noallegiance said:

You mean........ Surely not....... Less than 3 months after headlines proclaiming Carnage as the saviour of Britain he's going to get butt-fooked on live tellybox as scapegoat numero uno?!

I'd still go with the public hanging in order to focus the mind of future central bankers.

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Is housing market sustainable, with prices relative to income back to levels seen in 2008?

Alex Brazier: That rise in level in house prices relative to income has not, as it did in 2008, meant a rise in household debt. It’s not house prices per se, it’s the level of household debt, and [that] shows a completely different picture.

What kind of ****** is that ? 

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5 minutes ago, Nabby81 said:

Is housing market sustainable, with prices relative to income back to levels seen in 2008?

Alex Brazier: That rise in level in house prices relative to income has not, as it did in 2008, meant a rise in household debt. It’s not house prices per se, it’s the level of household debt, and [that] shows a completely different picture.

What kind of ****** is that ? 

Bank governor Mark Carney warns on household debt

"We are going to remain vigilant around the issue, because we have seen this shift," he told a press conference at the Bank.

The Bank's Stability Report showed that the overall ratio of household debt to income was 133% in the second quarter of 2016.

The Bank said that was high by historical standards, although it was not as high as in the financial crisis.

http://www.bbc.com/news/business-38155178

The indicator that led to his vigilance warning now touted as the reason not to worry.

Tl;dr of today's hearing: credit is not at crisis levels, banks are able to withstand any shocks, no powers or actions required to contain any issues. Not a single MP is competent enough to challenge these absurd claims. Nobody mentions impact of QE and related measures.

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16 minutes ago, Nabby81 said:

Is housing market sustainable, with prices relative to income back to levels seen in 2008?

Alex Brazier: That rise in level in house prices relative to income has not, as it did in 2008, meant a rise in household debt. It’s not house prices per se, it’s the level of household debt, and [that] shows a completely different picture.

What kind of ****** is that ? 

***** 

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I've watched the whole thing this afternoon. I have drawn two conclusions.

1. The title for this thread is apt, but only when thinking of it from the point of view of main street. Which leads me onto.......

2. In every assessment made by the BoE, the man in the street is not their concern. Every answer given today was weighted toward protecting the institutions within the financial system. This may be a manifestation of the realisation that the UK financial sector is so vast that a catastrophic failure within it would be hugely detrimental to everyone on our shores, but it means that the impacts of the current system on Mr & Mrs Britain do not feature within their policy making strategies.

Disjointed. And perhaps akin to a football club ignoring it's fans in respect of why they exist in the first place.

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1 minute ago, darkmarket said:

Bank governor Mark Carney warns on household debt

"We are going to remain vigilant around the issue, because we have seen this shift," he told a press conference at the Bank.

The Bank's Stability Report showed that the overall ratio of household debt to income was 133% in the second quarter of 2016.

The Bank said that was high by historical standards, although it was not as high as in the financial crisis.

http://www.bbc.com/news/business-38155178

The indicator that led to his vigilance warning now touted as the reason not to worry.

Tl;dr of today's hearing: credit is not at crisis levels, banks are able to withstand any shocks, no powers or actions required to contain any issues. Not a single MP is competent enough to challenge these absurd claims. Nobody mentions impact of QE and related measures.

C159IC8XUAEazAZ.jpg

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29 minutes ago, Nabby81 said:

Is housing market sustainable, with prices relative to income back to levels seen in 2008?

Alex Brazier: That rise in level in house prices relative to income has not, as it did in 2008, meant a rise in household debt. It’s not house prices per se, it’s the level of household debt, and [that] shows a completely different picture.

What kind of ****** is that ? 

We're saved!

image006.png

 

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25 minutes ago, Noallegiance said:

I've watched the whole thing this afternoon. I have drawn two conclusions.

1. The title for this thread is apt, but only when thinking of it from the point of view of main street. Which leads me onto.......

2. In every assessment made by the BoE, the man in the street is not their concern. Every answer given today was weighted toward protecting the institutions within the financial system. This may be a manifestation of the realisation that the UK financial sector is so vast that a catastrophic failure within it would be hugely detrimental to everyone THE PEOPLE PULLING THEIR STRINGS on our shores, but it means that the impacts of the current system on Mr & Mrs Britain do not feature within their policy making strategies.

Disjointed. And perhaps akin to a football club ignoring it's fans in respect of why they exist in the first place.

 

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42 minutes ago, Noallegiance said:

I've watched the whole thing this afternoon. I have drawn two conclusions.

1. The title for this thread is apt, but only when thinking of it from the point of view of main street. Which leads me onto.......

2. In every assessment made by the BoE, the man in the street is not their concern. Every answer given today was weighted toward protecting the institutions within the financial system. This may be a manifestation of the realisation that the UK financial sector is so vast that a catastrophic failure within it would be hugely detrimental to everyone on our shores, but it means that the impacts of the current system on Mr & Mrs Britain do not feature within their policy making strategies.

Disjointed. And perhaps akin to a football club ignoring it's fans in respect of why they exist in the first place.

My highlight.

It's endemic now - and why it's not worth supporting any more.

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8 hours ago, darkmarket said:

I'd like it if this inquiry was fairly narrowly focussed to be honest, and issues like inflation measurement were dealt with in parallel. I'd like to see a conclusion that the BoE has been acting in direct contradiction of its remit, but that'll remain a nice dream. Nevertheless, it's all a move in the right direction.

Fair enough and no doubt there could be advantages doing it that way - although my view is that their thinking is so disjointed (probably intentionally so) that unless they consider it all holistically then they will never come to a joined up conclusion that benefits the economy/the real economy.

They'll never see the linkages - again probably intentionally.  Those that do see the overall picture will exploit the stupid MPs (maybe the majority?) don't.

Edited by billybong

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33 minutes ago, billybong said:

Fair enough and no doubt there could be advantages doing it that way - although my view is that their thinking is so disjointed (probably intentionally so) that unless they consider it all holistically then they will never come to a joined up conclusion that benefits the econy/the real economy.

They'll never see the linkages - again probably intentionally.  Those that do see the overall picture will exploit the stupid MPs (maybe the majprity?) who don't.

This is the trade-off. My concern would be that terms of reference set too wide can create insurmountable problems for an inquiry, as seen in that into historical child abuse for example. The hope would be that a more narrowly-focussed inquiry could then be fed into a more overarching view of the situation, but that leads to problems you describe.

1 hour ago, Noallegiance said:

2. In every assessment made by the BoE, the man in the street is not their concern. Every answer given today was weighted toward protecting the institutions within the financial system. This may be a manifestation of the realisation that the UK financial sector is so vast that a catastrophic failure within it would be hugely detrimental to everyone on our shores, but it means that the impacts of the current system on Mr & Mrs Britain do not feature within their policy making strategies.

Given the subject of the hearing was BoE Financial Stability Reports 2016 and the focus of the witnesses of macroeconomic matters, this isn't altogether surprising. The MPs present have a responsibility to translate the responses into something meaningful for the electorate, which they are incapable or unwilling to do.

If you're angry about the lack of attention to the consequences of their actions on average people, I'd considering directing that towards the elected representatives who are supposed to be able to bridge the macroeconomy with lived experience. For the most part, I'd say they're incompetent. In certain instances, like Rees-Mogg for example, they appear to just not care.

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BoE's Carney - curbing consumer lending would be 'big call'

LONDON Bank of England Governor Mark Carney said it would be a "big call" for the central bank to rein in rapid growth in consumer lending, which picked up strongly last year and brought some echoes of the period before the global financial crisis.

 

We can't stop people spending money they don't have...

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