Tuesday, Mar 20, 2007
MPC deliberately caused housing boom
Ananova: Bank Takes Blame Over Property
"The group that decides the interest rate deliberately fuelled a consumer boom to boost house prices and personal debt so that "UK Plc" could avoid recession."
Posted by rich @ 04:47 PM (162 views) Add Comment
9 Comments
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1. enuii said...
Well I never, who'd have thought, how thoughtfull of them, wasn't Gordon a lucky chap?
2. sovietuk said...
"We knew that we were having to stimulate consumer spending; we knew we had pushed it up to levels which couldn't possibly be sustained into the medium and long term"
Ominous, so what comes next then ???
3. paul said...
"We tried very hard not to do more than we needed to keep within the inflation target limits but we knew that that was going to cause problems later on which are still with us. Concerns have been raised that the present official rate of inflation does not reflect the everyday experience of many voters."
In other words, he acknowledges that the MPC hoodwinked the UK public.
I doubt they'll be allowed to get away with that again ...
4. Ides Of March said...
So Eddie is doing a Greenspan and trying to explain himself before the sh*t hits the fan. Do you think the people he sacrificed will forgive him?
5. japanese uncle said...
They might possibly be watching this blog?!
This 'pre-emptive excuse' on the basis of 'good intention' or at the worst 'incompetence' for defence may well have been stored for some time, just to be published in the event the MPC should be under fire. Change of the BoE governor from Eddie to Merding should not have made any difference in terms of the policy itself, as their personal attribute is totally irrelevant in front of the grand agenda bestowed upon them.
If one of them should improvise, or behave in a too creative manner, they could well meet the same fate as befell upon the poor ex-governor of the European Central Bank, Wim Duisenberg who drowned after suffering heart attack in the swimming pool of his villa in Southern France, A rathe familiar way isn't it? Slightly similar to the way Robert Maxwell died. Incidentally you may wish to be reminded that he promised to pursue the real culprits who did the massive short-selling of the airliners and financial firms that suffered huge losses on 911.
6. Ian said...
"....The terrorist attacks on the US in September 2001 caused a stock market crash in the US, and a sharp fall in the global markets. We only had two alternative ways of sustaining demand and keeping the economy moving forward: One was public spending and the other was consumption...."
What, are we blaming terrorists for HPI now then???
"..Concerns have been raised that the present official rate of inflation does not reflect the everyday experience of many voters....."
Pppppffffffff....Spits coffee all over computer screen!!!! R-e-a-l-l-y????? You are a card mate, ever thought of doing Fridays at the comedy club?
7. harold said...
Looks like knighthoods all round for the MPC.
8. geed said...
I wish i knew how to post links to the BBC web site, thing is we all know this is happening. It is blatent. But will they change? Absolutely not.
So what someone (albeit someone in a position of influence) has verified what we already know. woopy freakin doo.
9. geed said...
Just sent this complaint to the BBC
"Why did the BBC choose to ignore the alarming comments made by former Bank of England chairman Eddie George yesterday?
(http://news.sky.com/skynews/article/0,,30400-1256664,00.html/)
- But appear to have pounced on the fact that the BoE committee chose to keep interest rates at 5.25% with a majority vote of 8-1. Essentially Eddie George has explained how the BoE have manipulated interest rates over the last 10 years to encourage people to take on debt thereby boosting spending, creating a huge housing bubble and delaying a recession.
I do wonder sometimes if the BBC is truly independent or are the BBC directors worried about their Buy To Let portfolios?"