Tuesday, Dec 30, 2008
Now they say it took everyone by surprise
Telegraph: Definitive proof that the Bank of England saw the financial crisis coming
Looking back in our archives I came across a rather important article. It dates from 2006, when the credit crisis was a mere apple in the financial system's eye and the City was enjoying one of its biggest booms in history. It reports on the BoE's Financial Stability Report, and shows that the Bank of England knew precisely what risk was posed by the dangerous build-up of debt which was brewing in the economy.
As we reported that day, "The City could face a financial meltdown if the debt bubble bursts. The Bank is issuing a stark warning about the potential damage a credit crunch and a collapse in asset prices could cause to the economy and financial system.
Posted by little professor @ 02:33 PM (1119 views) Add Comment
32 Comments
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1. little professor said...
Original 2006 report here:
http://www.telegraph.co.uk/finance/2943149/'City-faces-meltdown-if-debt-crisis-hits'.html
The Bank of England report they are referring to is here (p28-30):
http://www.bankofengland.co.uk/publications/fsr/2006/index.htm
Fascinating reading
2. sneaker said...
Fingerprints are everywhere - the BoE didn't just see it coming, the MPC knew a long time ago that it was making things worse for another day
http://www.independent.co.uk/news/business/news/exgovernor-george-says-bank-deliberately-fuelled-consumer-boom-441160.html
http://www.dailymail.co.uk/news/article-443540/Bank-England-deliberately-fostered-person-debt-avert-recession.html
3. paul said...
At last the mainstream media is starting to ask questions about the Bank of England's role in the housing boom and bust.
The warning signs were everywhere - this is why everyone picked up on the risk from the housing bubble before the Bank of England, FSA or the government - they were all far too engrossed in aptting themselves on the back and swilling the draff from all the excess money it appeared to create.
Some serious and probing questions should be asked of how these institutions (especially the BoE) have failed us.
Nadeem Wayalat on Market Oracle has pointed out that the BoE were categorically not targeting inflation over the last five years. If targeting inflation was the Bank of England's remit, then why has it only been within their 1-3% target range in 5 of the last 60 months!!! That's an APPALLING success rate.
4. crunchy said...
Why indeed create such a destructive economic climate?
I guess we will have to wait to find out.
There must be a good reason for this surely, as America has done exactly the same.
2009 may enlighten. If delusion does not blind us!
5. crunchy said...
For newbies http://uk.youtube.com/watch?v=ji_G0MqAqq8&NR=1
6. paul said...
Nice find there sneaker. From the article.
"(Lord George) also advised caution over predictions of a collapse in the housing market - pointing out that experts were saying one was about to happen when he left office. "We are still waiting for it," he said."
Bank of England 'deliberately fostered person debt’ to avert recession
Is there any way the state can claw back some of Lord George's pension in the same way that the FSA is proposing a curb on traders' bonuses?
7. plato said...
little professor
You are quite rightly opening up a can of worms here. This stinks! to say the least (your own words I believe - some time time ago).
crunchy
Not so much delusion as disbelief and confidence in justice.
8. crunchy said...
7. plato
Tell me you are joking. JUSTICE!
It's time to start seeing things for exactly what they are. No mercy!
9. crunchy said...
Ok are we in cohesion with the idea of orchestrated boom and bust, if so WHY?
Any suggestions would be welcome as far as I am concerned.
I am all ears.
10. plato said...
crunchy
In the context of the sentence - lack of justice....... As it happens people are pointing out anomalies such as this post with sound proof through their research. A logical approach that will gradually lead to causes and truth. I sense an air of urgency in your tone but as with all things of substance, this will not materialise overnight. Patience will avoid becoming a patient.
11. crunchy said...
10. plato
Anomalies really? Oh well.
12. japanese uncle said...
"The City could face a financial meltdown if the debt bubble bursts"
Wrong conjunction! There is no if, but when, as far as any bubble is concerned and the author of this comment was unquestionably aware of this. As I predicted two years ago, we are seeing one 'incompetence defense' after another these days.
13. sneaker said...
@ 9. crunchy
I was sent this link earlier today. Probably the most far-out thing I've ever come across. And extremely hard to believe, accept or even stomach !!
http://www.illuminati-news.com/00363.html
14. crunchy said...
13. sneaker
Dont have time to read this and look into it further, but thanks. It may tally with some other things I think they have in mind.
Tyranny. What's new?
15. sneaker said...
@ 14. crunch
Exactly! The rich have always sought power and influence. And those in politics have always been near the money-men. It's as old as history, and older again.
I don't really have much preference for what label it has. Illuminati, New World Order, Masons, whatever - it's irrelevant. And frankly you very rapidly bump into the "lunatic fringe" when researching the facts behind world events. The only thing that's important is that, whether or not there is a "conspiracy", there is certainly an agenda - in fact many agendas - and we only get a filtered version of the real story through official channels.
I find none of this disturbing. It's always been that way. And most important of all the internet will be its undoing; HPC is just one part of that phenomenon. As eBay proved, people are basically good. So if there really is any ruling agenda or "conspiracy", it'll get found out and overturned. This force doesn't need any leader to make it happen and it doesn't need to be violent, as Gandhi taught us. It'll just happen of its own accord, because the people will never be oppressed for long. They always wake up.
16. gardeniadotnet said...
@ 15. sneaker
I wish I'd said that.
17. plato said...
Succinctly put sneaker.
18. crunchy said...
17. plato
Agreed!
13. sneaker Amusing and funny read. Not convinced but thanks again.
You state "It'll just happen of its own accord, because the people will never be oppressed for long. They always wake up".
Let's hope it is that easy. I doubt it!
19. crunchy said...
http://uk.youtube.com/watch?v=hxgarOVO078&NR=1
Ron Paul 1983. Yes a much younger man talking about the same type of thing as post number 5.
Yeah just sit back dont ask questions and it will look after itself. I doubt it!
20. Hiccup said...
Coincidence that Deep impact is on the box. In six months we will all know what a mess our betters have got us into.
21. crunchy said...
Over 8 trillion dollar Bailout and counting.
Try fining out where it has gone.
Patience will avoid becoming a patient. That's what Paulson said to congress I bet!
Good night.
22. nopensionnohouse said...
Crunchy said “For newbies http://uk.youtube.com/watch?v=ji_G0MqAqq8&NR=1”
So, if Ron Paul had / has all the answers then why is he so unpopular with the main stream?
23. crunchy said...
22. nopensionnohouse
Ron Paul has been misquoted and largely blacked out by mainstream media. He is the last person the elite wants. A peoples person.
Obama was backed heavily with Wall St money and if you look at the policys and the people that surround him there is little change from Bush. As usual, time will reveal.
Main stream Americans are just like main stream Brits nopensionnohouse.
24. nopensionnohouse said...
23. crunchy
The way I understand it Obama hasn’t been particularly forthcoming with his policies yet and has even U turned on some of what he was campaigning on… as a result there has been a lot of speculation about what he is going to do. I don’t see how you can ask that!
Regardless, from what little we know at the time of writing I think he will be a massive change from Bush what ever his policies may turn out to be!
Certainly more green, alternative and sustainable for sure.
25. Nopensionnohouse said...
I mean ask as in "to look at the policies..."
26. crunchy said...
nopensionnohouse said...Certainly more green, alternative and sustainable for sure.
crunchy Carbon taxes you mean? Let's see.
All you need to do is look at what will continue to happen to the American Constitution that was set up to keep a check on tyrants taking over the counrty. If that's not good enough for you then there is little more I can say.
27. nopensionnohouse said...
*Sigh*
28. crunchy said...
26. nopensionnohouse said...*Sigh*
Save it for later!
Time reveals everything.
29. nopensionnohouse said...
Yeah, happy new year. Catch you on the flip side.
30. crunchy said...
Happy New year one and all.
Let's just be positive. : )
31. crunchy said...
28. nopensionnohouse
Something for the flip side http://uk.youtube.com/watch?v=J7SpA2Qe3FM&NR=1
32. crunchy said...
Last one Bud http://uk.youtube.com/watch?v=ktIECyzf4YM&feature=related
Promise. lol