Tuesday, Oct 30, 2007
Lunatic Barker talking about rate cuts!!! - I despair!
Reuters: BoE's Barker asks if rate cut needed
The question for policy-makers is whether things have changed so much in Britain's economy since August that interest rates need to come down, Monetary Policy Committee member Kate Barker was quoted as saying
Posted by tyrellcorporation @ 12:33 AM (1219 views) Add Comment
13 Comments
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1. whiteknight said...
You have to understand it is a very, very rare skill for somebody to be able to look ahead 5 moves and resign if the game is lost.
So what we mean here is that each and every move from this point forward is almost inevitable including those that seem to take us away from the final scenario for a while.
Its very, very rare.
Its equally rare to be able abandon or reverse a position if the person has invested in it.
Bill Gates is someone I believe who can do this. He can be wrong by his own admission. Realise dispassionately that he is wrong. Not only can he reverse the position as if he has done a handbrake turn, he can overtake the people who were "right" going back in the other direction. Thats on the times he is wrong.
I expect all or most of the players simply to dance out the sequence no matter how absurd it might seem.
2. paul said...
With oil soaring and the inflation horizon looking very unsure, the only option may be to sack Barker for incompetence.
3. Seanb303 said...
anybody see american nightmare on bbc2 last night?
really really shocking
4. planning4acrash said...
If interest rates remain high and house prices fall, Kate will look stupid and could be out of a job, because she said we would only get lower prices in this country if we concrete over the Greenbelt and have a couple million additional houses. Would be a chip to her opposers if house prices came down all on their own!
5. Oj said...
I think you guys read this wrong - Barker is saying nothing has changed - and appears to oppose cutting rates
6. Ill_handle_it said...
No doubt the tax payer will have to bail out a few more banks on the quiet and pay some mortgages of people that bought houses they couldn't afford. The whole situation beggars belief.
7. Jonathan said...
And they are planning4acrash...
Speaking to estate agents friends today in Surrey, they admitted the market is tanking. The same friends remained resolutely positive in 2001, but they just can't talk it up (although of course they will to punters!). They are getting oversupply and prices are dropping considerably to make a sale.
8. Tulipmania said...
Apart from the misleading headline I don't actually see anything in this article which suggests she does actually favour a cut.
"Barker was reported to have said that there had not been much change in attitudes since the disruption started in financial markets on August 9."
That seems to indicate to me she is saying the BoE is happy with the current level of rates.
9. paul said...
I really should RTFA.
Barker is saying that the rates outlook has not changed.
The title of the article has two interpretations. She says rates shouldn't change despite the housing issues and August turbulence.
Tyrell, your intepretation of the article was wrong. As was mine.
10. Dr. K said...
An agent in Horsham said to me prices will drop and he is currently tellng vendors they will have to take offers if they want to sell. However, I have yet to see the asking prices coming down. I feel the market has been primed for a crash by the sub prime mortgage fraud but I believe another event may be needed to tip the market over; maybe greater than expected job losses in the City rippling out across the SE!! Fingers crossed (Sad that some may lose jobs but I make no apologies for this, a recession and HPC will be the best medicine this country could have.)
11. Happyrentigz said...
Whether she wants it or not, you can be sure the BoE will drop rates next year when house prices crash. This is for political reasons. By dropping interest rates the pound will crash like the US dollar so then house prices don't need to crash as far in pound £ terms. In the end house prices will devalue but it will take the pound £ with it. So the question is where to put my carefully saved up pounds to survive the coming hyper-inflation. Gold maybe?
12. whiteknight said...
not really. she is saying something totally ambiguous that can be taken of two ways.
13. Orwell said...
Her opinion changes in the wind according to how vulnerable her cosy sinecure at the BOE looks. I told you she bats both ways.....
In the sense of changing her opininon with the political wind of course....