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Tired of Waiting

Fed Released Transcripts Of Its 2005 Omc Meeting

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Last Friday, 14 January, the US Federal Reserve released the transcripts of its 2005 Open Market Committee meeting.

FT: "Fed misread housing risks, minutes show

(...)

The Fed publishes full transcripts of FOMC meetings with a five-year lag. In June 2005 committee members requested a full-day discussion of the rapid rise in house prices that was then under way.

(...)"

http://www.ft.com/cms/s/0/54030186-2029-11e0-a6fb-00144feab49a.html#axzz1BNvtgAX2

Bloomberg: "Fed Officials Saw Housing Bubble in 2005, Didn't Alter Policy"

http://www.bloomberg.com/news/2011-01-14/fed-saw-housing-bubble-in-2005-failed-to-alter-policy-of-rate-increases.html

WSJ: "Fed Felt Hamstrung By 2005 Housing Bubble"

http://online.wsj.com/article/SB10001424052748703959104576082313921593064.html

Original Fed transcripts

http://www.federalreserve.gov/monetarypolicy/files/FOMC20051213meeting.pdf

Plenty more:

http://www.google.co.uk/search?hl=en&safe=off&rlz=1B3GGLL_en___GB407&tbs=nws%3A1%2Cqdr%3Aw&q=bubble+greenspan+OR+fed&aq=f&aqi=&aql=&oq=

.

Edited by Tired of Waiting

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Federal Reserve staff and policy makers identified a housing bubble in 2005

So they indentified a bubble right at its very peak and just as it started to collapse. Keep up the good work.

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Good thing we've got new guys and new policies leading the way now.

This is a pearl:

“In the event of a sharp drop in housing prices, the odds of a spillover to financial institutions seem limited”

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The Bank of England was similarly on the ball. In 2005 they identified a deranged Stalinist running HM Treasury.

didn't Blair request a Treasury report on House prices at around the same time only to be told there was no bubble?

I believe the exact text of the report was:

"shortage of houses, supply and demand, innit"

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So they indentified a bubble right at its very peak and just as it started to collapse. Keep up the good work.

Better late than never....

Nice that they have a 5 year lack before it gets into the public domain, stops all sorts of nasty discussions.

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didn't Blair request a Treasury report on House prices at around the same time only to be told there was no bubble?

I believe the exact text of the report was:

"shortage of houses, supply and demand, innit"

Exactly.

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From the WSJ:

The central bank's decision to push interest rates down to 1% earlier in the decade "probably did add to the housing bubble, if, in fact, there is a housing bubble," Mr. Gramlich said at the June 2005 meeting. "When we take rates down in a soft economy, we probably will be creating some bubbles, or at least mini bubbles here and there—not because we want to, but because it is inevitable."

William Poole, then president of the St. Louis Fed, knocked down the idea of the Fed tackling asset-price bubbles. "It seems to me that that would change the whole nature of the pricing mechanism in asset markets. And I think it would be a terrible idea in a market economy to have a government agency setting capital asset values."

Just 1 year before the bubble's peak. :rolleyes:

Any conspiracy theorists around? they should read this, and realise reality is even worse: the elites are really moronic. Not "evil bastards" in power, just morons.

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Better late than never....

Nice that they have a 5 year lack before it gets into the public domain, stops all sorts of nasty discussions.

BTW, does anybody remember if our MPC has discussed our HP bubble before 2007?

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  • 312 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
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      • up 5%



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