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Merv Wanted To Recap Banking System In March '08

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Unblocking Illiquid Mortgage-Backed Securities

3. (C/NF) King said it is also imperative to find a way for banks to sell off unwanted illiquid securities, including mortgage backed securities, without resorting to sales at distressed valuations. Kimmitt acknowledged the need to find ways to unblock these markets

Why are they unwanted? If these 'securities' were to be of long term strategic value I'm faily sure the market itself would be providing liquidity and supporting also the share price value of the banks.

It sounds like they want to find a way to shunt them off to others at a much higher value than market conditions say they are worth. To find suckers willing to overpay for these 'securities' or try and rope in Asian countries to overpay and share back some of the weath they've gained over the last decade. And in the process, prevent banks' share price and house prices correcting.

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If any accusations were to fall to King, he could happily retort he was powerless to act, since it was Brown who neutered the BOE.

He could argue it was the FSA who should have been acting.

They were all 'aware' of the problem.

Using Wikipedia quickly as a source, it says one of the main functions of the BoE is, "Financial stability: Maintaining financial stability involves protecting against threats to the whole financial system."

It is one thing to see average house prices rise from £10,000 in the mid 1970s to £30,000 in the mid 80s. House price rises have been in a different order entirely since 1997 than anything before. The sort of money, or credit rather that has been allowed to flow though the system to multiply them from 1997 levels to 2007 levels.

Don't forget your King man slapped down people who were concerned about the situation of house prices rising so rapidly, including Gillain Shephard MP in 2005 . To me King has loved his time as an official since 2007. Rather than be a humble and dilligent civil servant, doing his job responsibly, he didn't crack down on issues of stability. It's a consequence of Labour's cheap fame, look-at-me, time in the spotlight, celebrity culture. He's got through to round to the financial version of X-factor round 8, singing dancing around on stage showing the world what a great mind and full of his own importance. He even has the nerve to suggest young whippersnappers Cameron and Osbourne are inexperienced.

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Using Wikipedia quickly as a source, it says one of the main functions of the BoE is, "Financial stability: Maintaining financial stability involves protecting against threats to the whole financial system."

It is one thing to see average house prices rise from £10,000 in the mid 1970s to £30,000 in the mid 80s. House price rises have been in a different order entirely since 1997 than anything before. The sort of money, or credit rather that has been allowed to flow though the system to multiply them from 1997 levels to 2007 levels.

Don't forget your King man slapped down people who were concerned about the situation of house prices rising so rapidly, including Gillain Shephard MP in 2005 . To me King has loved his time as an official since 2007. Rather than be a humble and dilligent civil servant, doing his job responsibly, he didn't crack down on issues of stability. It's a consequence of Labour's cheap fame, look-at-me, time in the spotlight, celebrity culture. He's got through to round to the financial version of X-factor round 8, singing dancing around on stage showing the world what a great mind and full of his own importance. He even has the nerve to suggest young whippersnappers Cameron and Osbourne are inexperienced.

Let's also not forget Merv can't not have been aware of these words from his predecessor:

"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. But for the time being, if we had not done that, the UK economy would have gone into recession just as the United States did."

He said he was "very conscious" that stimulating consumer demand could give rise to problems in the future. "My legacy to the MPC, if you like, has been 'sort that out'," he said. Under Lord George's governorship, rates were slashed from 6 per cent in 2001 to 3.5 per cent in 2003, pushing house price inflation above 25 per cent and high street spending growth to its highest since the late-Eighties boom.

He obviously couldn't be arsed addressing the bold part

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  • 317 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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