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Turnbull2000

Mpc View Asset (property Prices) As Key To Recovery?

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http://www.ft.com/cms/s/0/3402e7fe-a797-11...144feabdc0.html

“There was a possibility that the recovery in asset prices and confidence could mark the start of a virtuous upward spiral for the economy,†the MPC said.

Is this an admission of the MPC's hidden policy? And more importantly, will they keep printing and maintain ultra low rates until prices rise beyond 2007 levels?

CityUnslicker's view is that the money printing is "causing a new asset bubble in property and commodities.

http://cityunslicker.blogspot.com/

What are the odds of 2009 heralding the start of another house price bubble?

Edited by Turnbull2000

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http://www.ft.com/cms/s/0/3402e7fe-a797-11...144feabdc0.html

Is this an admission of the MPC's hidden policy? And more importantly, will they keep printing and maintain ultra low rates until prices rise beyond 2007 levels?

CityUnslicker's view is that the money printing is "causing a new asset bubble in property and commodities.

http://cityunslicker.blogspot.com/

What are the odds of 2009 heralding the start of another house price bubble?

its an admission of their inherent evilness.

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http://www.ft.com/cms/s/0/3402e7fe-a797-11...144feabdc0.html

Is this an admission of the MPC's hidden policy? And more importantly, will they keep printing and maintain ultra low rates until prices rise beyond 2007 levels?

CityUnslicker's view is that the money printing is "causing a new asset bubble in property and commodities, so the Real Estate market is picking up a lot more quickly than anyone thought it would".

http://cityunslicker.blogspot.com/

Its an admission that the MPC are a market distorting bunch of crooks. If they really think that a 'virtuous cycle' can be established from an over inflated bubble of a property market then they and we really are fooked. :ph34r:

BTW - CityUnslicker is probably right along with Injin is that all price signals have vanished - trust ahs been lost in fiat and we are either going to enter DadyBears break-up boom or the BoE will see the folly of the actions and do something (as if).

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What's an asset?

Wikipedia says: "Simplistically stated, assets are things of value that can be readily converted into cash."

...but houses aren't really selling are they? Not in the "normal market conditions" kind of fashion anyway. We keep hearing of cash-rich buyers and low volumes. I'm dead glad I'm not selling a house right now. Sounds like it'd be a nightmare to "readily convert into cash". That'd be less of an asset and more of a millstone.

But, cue the bit on that Wikipedia held in parenthesis: "(although cash itself is also considered an asset)"!

Increase in value of cash? How so? Quantitative tightening?

Or are the MPC spouting nonsense that is deliberately unclear to the masses? I mean, as if...

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:lol::lol::lol::lol:

M_i_m_lovin_it_TM_logo2.jpg

1 - BTW - you are still an idiot.

2 - If you think buying a poxy 2 up 2 down will save you from your prediction then goto statement 1.

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Guest Daddy Bear
Its an admission that the MPC are a market distorting bunch of crooks. If they really think that a 'virtuous cycle' can be established from an over inflated bubble of a property market then they and we really are fooked. :ph34r:

BTW - CityUnslicker is probably right along with Injin is that all price signals have vanished - trust ahs been lost in fiat and we are either going to enter DadyBears break-up boom or the BoE will see the folly of the actions and do something (as if).

and we are either going to enter DadyBears break-up boom

Ride your own horse you...

Black%20belgian%20rooster2006.JPG

Edited by Daddy Bear

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Is this an admission of the MPC's hidden policy? And more importantly, will they keep printing and maintain ultra low rates until prices rise beyond 2007 levels?

CityUnslicker's view is that the money printing is "causing a new asset bubble in property and commodities.

Well they would certainly like to stimulate spending amongst the masses by increasing the wealth effect. i.e. the prices of assets such as stocks and house prices. They seem to be having some success in this so far.

From P11 of Augusts Inflation Report.

"One channel through which asset purchases by the Bank

should boost nominal spending is by pushing up asset prices

and lowering yields.(1) That boosts wealth and reduces the cost

of borrowing for households and companies, both of which

should increase their spending"

http://www.bankofengland.co.uk/publication...rt/ir09aug1.pdf

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Well they would certainly like to stimulate spending amongst the masses by increasing the wealth effect. i.e. the prices of assets such as stocks and house prices. They seem to be having some success in this so far.

From P11 of Augusts Inflation Report.

"One channel through which asset purchases by the Bank

should boost nominal spending is by pushing up asset prices

and lowering yields.(1) That boosts wealth and reduces the cost

of borrowing for households and companies, both of which

should increase their spending"

http://www.bankofengland.co.uk/publication...rt/ir09aug1.pdf

Wow. Well there we have it. The BoE's current policy is aimed directly at boosting house prices. As much as it disappoints me, we could be seeing the start of a new sustained rise in prices.

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Guest Daddy Bear

Bank cautious despite ‘upward spiral’

The Bank of England left the door wide open to a further expansion of quantitative easing even as it said that the economy could be at the start of “virtuous upward spiralâ€, according to minutes from the past meeting of the monetary policy committee.

The MPC voted unanimously to keep its prog­ramme of asset purchases at £175bn in September, the minutes showed, after surprising markets with a £50bn expansion in August.

But the Bank has made clear that any decision on altering the amount of quantitative easing – the policy of creating money in order to boost spending and avoid persistently low inflation – is highly unlikely to be made until more comprehensive forecasts are available ahead of its November inflation report.

Policymakers acknowledged in the September meeting that the world economy had improved by more than expected over the previous month. Asset prices had continued to rise, while three-month Libor, the rate at which banks lend to each other – a benchmark for loans to consumers and companies – was at its lowest level since the mid-1980s.

“There was a possibility that the recovery in asset prices and confidence could mark the start of a virtuous upward spiral for the economy,†the MPC said.

But despite the general improvement in the economic outlook that has consistently surprised the committee in recent months, it remained downbeat. “These short-term developments had limited implications for the medium-term inflation outlook,†it said.

In a speech on Wednesday Kate Barker, an external member of the MPC, echoed the minutes in saying that it remained unclear if recent improvement in economic data signalled a sustainable recovery and that monetary policy would need to remain supportive.

The Bank’s QE contradictions

The Bank of England is grappling with a difficult communications problem. Officials keep insisting that the recovery will be “slow and protractedâ€, even as the data indicate the economy is growing, growth is stronger than the Bank thought only a few months ago, and the Bank is busily patting itself on the back over what it thinks is a successful introduction of quantitative easing. If the Bank’s policies are so successful, why will the recovery be slow and why might there be a need to shovel even more newly created money out of the Bank’s door into the economy? asks Chris Giles

She gave warning that an export-led recovery was unlikely, because of weakness among our main trading partners. “The export route out of a financial crisis, which has in the past helped other countries to recover from similar crises, seems less readily open to the UK now,†she said.

The minutes made no reference to any discussion of whether to cut the remuneration levels on reserves held by commercial banks at the Bank of England.

Such a policy could sharpen the impact of quantitative easing by encouraging banks to invest in riskier assets but the Bank does not think it would have a big economic impact.

But it is unclear whether the decision would be taken between meetings of the MPC, because it would typically be a question for the Bank’s executive .

The Bank is currently debating whether the move is a fundamental change to monetary policy. If so, the MPC will take it; but if it is merely a technical issue about money market operations, the executive will decide.

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Wow. Well there we have it. The BoE's current policy is aimed directly at boosting house prices. As much as it disappoints me, we could be seeing the start of a new sustained rise in prices.

Wot and suck even more money out of the economy? How many sellers of property do you think are leaving the UK and taking their money out? ? Combined with the reduced spending power of the idiots who buy into a lifetime of debt, rising house prices should do wonders for an economy based on consumer spending :lol:

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Guest Daddy Bear
................ we could be seeing the start of a new sustained rise in prices.

fook me - who'd have thunk it.....?

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Wot and suck even more money out of the economy? How many sellers of property do you think are leaving the UK and taking their money out? ? Combined with the reduced spending power of the idiots who buy into a lifetime of debt, rising house prices should do wonders for an economy based on consumer spending :lol:

yep, to rescue banks balance sheets the assets need to rise.

I am disappointed with the lack of imagination demonstrated. cutting wage bills and having banks in piles of portacabins would probably resuce them just as quickly.

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Wow. Well there we have it. The BoE's current policy is aimed directly at boosting house prices. As much as it disappoints me, we could be seeing the start of a new sustained rise in prices.

MPC: Would monsior like one more loan? (French accent).

Mr Cre-osumer "***K! I'm FULL!"

MPC: (Still dodgy French accent); But sir, it is WAFFFFERRRRRR THIN!

MontyPythonsMeaningOfLifeMrCreosoteItsOnlyWaferThin.jpg

...hmmm looks really sustainable! ;)

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Ride your own horse you "male-hen" sucker

"male-hen"? Isn't that like saying "man-woman"? Did you mean "male-chicken"? Why not just say "****" instead of failing to be clever/funny?

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Hey guys...funny how the MPC is comming out with this now...now that it's history!!!

DaddyBear has been telling you for ages.....oh...oh..you never knew?

Ah yes...thats because the mods keep banging his informative posts threads into the sub forums.... ;)

Tell you what...nip over there now and have a peek at what he has written....you might not be to late to protect yourself!!

Talk about shooting yourself in the foot...oh and an other...old one....talk about the blind leading the blind.

Jeez! you have all been at it!!

:lol:

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:lol::lol::lol::lol:

M_i_m_lovin_it_TM_logo2.jpg

i dread to think why you're interpreting: (1) the country's best macroeconomists getting their heads together and concluding that they can't see any inflationary pressure; and (2) some blogger reckoning that we're heading towards a new asset bubble as 'evidence' that your crackpot predictions are coming true...

Edited by the flying pig

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Ride your own horse you "male-hen" sucker

Sorry - I should have not called you an idiot - my bad. I just find your smugness rather objectionable.

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Guest Daddy Bear
idiot.

you're interpreting: (1) the country's best macroeconomists getting their heads together and concluding that they can't see any inflationary pressure; and (2) some blogger reckoning that we're heading towards a new asset bubble as 'evidence' that your crackpot predictions are coming true...

........country's best macroeconomists..........

dearie dearie me.....what can I say....?

some blogger reckoning that we're heading towards a new asset bubble

No.

I think you'll find all the data here

http://www.mongabay.com/images/commodities...index_comm.html

or you could look at:

dow

ftse

oil

gold

commodities

UK HPI

since Jan 2009...

You my friend are the idiot. A simple blinkered sheep.

DB

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Hey guys...funny how the MPC is comming out with this now...now that it's history!!!

DaddyBear has been telling you for ages.....oh...oh..you never knew?

Ah yes...thats because the mods keep banging his informative posts threads into the sub forums.... ;)

Tell you what...nip over there now and have a peek at what he has written....you might not be to late to protect yourself!!

Talk about shooting yourself in the foot...oh and an other...old one....talk about the blind leading the blind.

Jeez! you have all been at it!!

:lol:

I'm the only guy I know with a payrise YoY (just been enticed out of self-imposed semi-retirement after leaving banking in July 2008). Rising wages are required for an upward price spiral. Wake me up when the tax take starts rising significantly.

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Guest Daddy Bear
"male-hen"? Isn't that like saying "man-woman"? Did you mean "male-chicken"? Why not just say "****" instead of failing to be clever/funny?

****

I'm on maximum swear filter

Edited by Daddy Bear

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From P11 of Augusts Inflation Report.

"One channel through which asset purchases by the Bank

should boost nominal spending is by pushing up asset prices

and lowering yields.(1) That boosts wealth and reduces the cost

of borrowing for households and companies, both of which

should increase their spending"

Madness. This immoral policy only serves to rob OAPs of their security and turn the nation into lottery junkies. It is not going to have any lasting benefit for housing; quite the reverse.

Edited by Toto deVeer

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Guest Daddy Bear
I'm the only guy I know with a payrise YoY (just been enticed out of self-imposed semi-retirement after leaving banking in July 2008). Rising wages are required for an upward price spiral. Wake me up when the tax take starts rising significantly.

They'll lag by about 18 months to let the markets equillibriate.

But they'll come.

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