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Home Repossession Fears Exaggerated, Says Bank Governor

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So, yesterday I started a topic on a Guardian article where a senior banker was alerting the governement and BoE to the risk of repossessions rising.

It triggered some good debate on this forum.

Today however comes the response from the BoE.

Mervyn Brown came out and confirmed that there will be no rates rises for some time (obviously though, he's only one voter on the panel).

This concerns me. I personally believe there should be a small rise in interest rates (IRs were reduced to counter an emergency which is long since over, and because of sustained high inflation).

There is of course the counter argument that inflation is temporary and caused by factors outwith the Bank's control. That's fine, but what concerns me is that in the article below, Mervyn Brown doesn't even give a nod to inflation. I don't think he should be saying IRs will not rise when he still does not have inflation under control. After all, if the next inflation figures jumped yet another 0.5%, would he still consider it irrelevant?

Speaking to the Treasury Committee, Sir Mervyn said that the economy was not strong enough to cope with a rate rise at the moment.

"The reason we would raise interest rates would be in the context of a much stronger economy with unemployment falling rather than rising."

Full link at:

Home Repossession fears overdone

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What's wrong with using an English word like 'outside'?

?? What's wrong with using an English word like "outwith".

What, do we have to dumb down our posts now to the lowest common denominator?

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?? What's wrong with using an English word like "outwith".

What, do we have to dumb down our posts now to the lowest common denominator?

It's a Scots dialect word and serves no purpose in standard English except to make anyone who uses it sound pretentious.

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Be nice if they went to a load of homes repoed in the 90s on the news and looked at who moved in after they were repoed, how long they sat empty etc. They talk about it like its the end of the world. Course, if youre evicted, no one cares, its all about the poor landlord.

One families loss is anothers gain. Keeping people in homes they cant afford is in no ones interests.

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So, yesterday I started a topic on a Guardian article where a senior banker was alerting the governement and BoE to the risk of repossessions rising.

It triggered some good debate on this forum.

Today however comes the response from the BoE.

Mervyn Brown came out and confirmed that there will be no rates rises for some time (obviously though, he's only one voter on the panel).

This concerns me. I personally believe there should be a small rise in interest rates (IRs were reduced to counter an emergency which is long since over, and because of sustained high inflation).

There is of course the counter argument that inflation is temporary and caused by factors outwith the Bank's control. That's fine, but what concerns me is that in the article below, Mervyn Brown doesn't even give a nod to inflation. I don't think he should be saying IRs will not rise when he still does not have inflation under control. After all, if the next inflation figures jumped yet another 0.5%, would he still consider it irrelevant?

Full link at:

Home Repossession fears overdone

Well IMO the emergency is just beginning. Double talk from bankers in the media is for some purpose that benefits them? Trying to persuade people not to default in this case?

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It's a Scots dialect word and serves no purpose in standard English except to make anyone who uses it sound pretentious.

And is also used in Northern England, particularly Yorkshire. It's near enough to Scotland to make no difference, I still need subtitles.

Edited by Berk-hater

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Thinks it gives more validity when talking shite.

+1

It's a Scots dialect word and serves no purpose in standard English except to make anyone who uses it sound pretentious.

+1

If exaggerated, then he can put rates up now can't he, and stop executing savers and propping up a ponzi

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The economy will never be strong enough for a rate rise until they let inflation get into wages.

If they refuse to countenance that then they'll never be able to raise rates.

It really is as simple as that.

It'll be obvious to all, once the wheels come off the euro and the stupidity of the ECB (and by extension the whole euro project) is laid bare.

Rates cannot be raised if debtors cannot raise the funds to pay the rate. Raising rates in any other circumstance simple threatens existing savings.

You might think they are trying to protect debtors but what they are REALLY REALLY worried about is having to invoke deposit insurance on a mass scale.

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+1

+1

If exaggerated, then he can put rates up now can't he, and stop executing savers and propping up a ponzi

Translated as: I'saggerated den e c'n pt rets oop na c'nt ee 'n' stp cootin'g t't sevas 'n' propin' oop t' ponzi (outwith)

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Well IMO the emergency is just beginning. Double talk from bankers in the media is for some purpose that benefits them?

It's an artificial fog of war. Create enough doubt so that everyone hear what they want to hear: the sibleys are reassured that rates won't rise (and so stops from saving) while granny is reassured that rates will rise eventually and so doesn't rush to her bank and cashes out all her savings to buy gold.

<Edit to add: it's becoming clear to me that the truth is that BOE will keep real rates as negative as possible until banks have restored their solvency, say for the next 5-10 years.>

Edited by _w_

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This is the guy that couldn't see any problems looming with house prices doubling and a huge debt fuelled consumer boom. Not once did he ask where the money was coming from, or how the banks could cope if the money markets dried. Told Gillian Shephard to buzz off when she alerted him to potential problems at Northern Rock. Consequently I don't think that "Sir Merv" is any more clued up than he was then. I think he's a typical professional bureaucrat.

http://www.dailymail...-years-ago.html

Bank of England governor Mervyn King was warned two years ago that Northern Rock was in danger of collapse ? but he brushed the concern aside dismissively.

Former Tory Cabinet Minister Gillian Shephard told Mr King she feared a 'day of reckoning' because Northern Rock was consistently offering cut-price home loans.

Mr King responded by telling her she did not understand banking and insisted there was nothing to worry about. The confrontation took place in 2005 when Mr King went to the House of Lords to address Conservative peers.

This guy should have been fired, let alone knighted and the MPC replaced. Its all Brown's structures anyway or its been designed that way by the banks. This is before we even get onto inflation currently running at 5-6% when his mandate is to maintain 2%. He is a disaster area.

Edited by John Steed

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More proof that the UK is not a Democracy.

"I am afraid that ordinary citizens will not like to be told that the banks can, and do, create and destroy money; and they who control the credit of the nation direct the policy of governments and hold in the hollow of their hands the destiny of the people."

R. McKenna, Chairman, Midland Bank London

Whats the point in having local MP's when unelected private bankers are allowed to set national policies, just because Banks are allowed to create Money [bank Deposits] out of thin air?

Our politicians are spineless, useless cretins. Supporters of Economic Fascism. The Banks should be likened to being an occupying force.The UK is under occupation, from an enemy which attacks our liberty, democracy, and human rights, and our elected officials, are like those officials in Vichy France who tried turning a blind eye to the Nazi's. Why bother invading a country with arms, when you can enslave the population using stealth without the bloodshed?

Why was the Bank Charter act of 1844 never updated? Because all our leading politicians are corrupt to their core? Because the International Bankers run the UK.

None of the UK's leading political parties offer REAL monetary reform. Which is what 99% of the population of the UK would want.

"The issue which has swept down the centuries and which will have to be fought sooner or later is the People vs. The Banks." -

Lord Acton, Lord Chief Justice of England, 1875

Over how many more centuries will politicians and bankers be allowed to continue to ruin our lives? Rob and Rape us? Because that's whats really happened.

Edited by Dan1

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1.] Sack Merv, and all his cohorts. Destroy the FSA.

2.] Sack the entire MPC

3.] Take the power to create deposits, [money out of thin air] away from all banks.

4.] Allow the BOE to create deposits, [money] and no other.

5.] Hire a completely impartial MPC. [No Ex Bankers]

6.] The MPC alone, insulated from Economic Electioneering, take the decision on how much money the BOE should create every year, based upon REAL inflation figures.

7.] Temporarily nationalise State Owned Banks.

8.] Allow Repossessed properties to go to auction, setting a reserve on those properties, in line with the long term measure of historic affordability:

Average house Price = 3x salary of single average wage earner.

9.] Reform Banking Practices:

Upon making a decision to increase the money supply, the MPC would authorise the Bank of England's Issue Department to create the new money by increasing the balance of the government's 'Central Government Account'. This newly-created money would be non-repayable and therefore debt-free.

The newly-created money would then be added to tax revenue and distributed according to the elected government's manifesto and priorities. This could mean that the newly-created money is used to increase spending, decrease the national debt, or replace taxation revenue in order to reduce taxes, although the exact mix of these options would depend entirely on the elected government of the day.

Consequently, the decision over how newly-created money is initially spent would be made by the government, but the government would have no control or influence over how much money is created.

In other words:

Make the banks, who are responsible for this mess take the biggest hit.

Rather than the average taxpayer, who only wants to be able to work and pay for something he can call his own. [A Home]

Bring house prices back in line with historic measures of affordability. Now. [Not ten years from now.]

Instead of allowing one section of a society to benefit massively from house price inflation, which was set by a criminally corrupt banking system, and an orgy of easy credit.

[Why should we pay to keep other peoples houses, or the banks assets, massively overinflated, against all historic measures of affordability, ensuring we can never afford our own house, and continue to be forced to work for nothing? No Capital?]

When we have already been forced to waste tens upon tens of thousands in rent. For Over a decade. Which has basically been systematically stolen from us.

The most notable characteristic of a Fascist ideology is the seperation or persecution of one section of a society at the expense of another.

We are in Debt Slavery. When its not our debt.

It's Headspinning, Infuriating, Un-F"**@g, believable!!

I think we would be in the right to go and burn down our local MP's House's. [Who made hundreds of thousands of pounds in personal profits by voting on policies, to inflate House Prices. Flipping second properties under a secret expenses system. Labour, under Brown, then formed a three line whip, to try and keep this information, from the public domain! ] And attack certain local banks.

Edited by Dan1

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I've followed a number of repossessed properties at auctions.

One example would be, A converted Barn, in a nice area, in Lincolnshire. [Valued at £350k at peak 2007 price.]

The house was a repossession, owned by a State Owned Bank, and I followed its progress as it went to auction on 4 seperate occasions over the course of a year.

Each time it received over ten bids.

But never Attracted a higher bid than £110k. [A 68% reduction from peak]

At each of the 4 auctions, it did not meet the undisclosed reserve set by the bank.

So each time it was withdrawn.

I found the last Estate Agent to represent the property. And called him.

The Estate Agent told me that the bank did not have to lower the reserve, as the taxpayer is bailing out the bank, therefore the reserve will be kept at stupidly high levels, until it is sold.

As far as I am aware the property is still sitting on the banks books.

The government complains about the "lack of housing" as a cause of the problem, for FTB'ers, yet they sit back and let the banks hold large

amounts of the potential housing stock.

It is criminal that foreclosed housing has a set reserve price. Set By Banks!

Surely there is no truer valuation, of what a property is actually worth, than what someone is prepared to pay for it at auction?

While the banks keep hold of properties at reserve prices which nobody will pay, the Banks themselves can keep generating fictitous bonuses on Falsified "profits" instead of writing down losses!! [No other business in the world could do that!]

Thereby continue paying themselves tens of million's in Bonuses!!

Based upon False Accounting.

STOLEN from Joe Taxpayer!

ITS Fraud and THEFT.

Plain and Simple.

Blatant False accounting and fraud, which is aided and abetted by our corrupt government.

Who are willing partners

Yet without the the money and future forced pledges from those taxpayers who do not own property, and the recapitalisation of certain banks,

property prices would have plummeted back to their long term average affordability.

As a proportion of income.

Which would mean over 50% falls.

So by stealing our Taxes, QE, our own banks buying our own gilts, keeping Interest Rates at the lowest they have ever been, etc etc etc

we are in effect being forced to pay to keep everyone else's property, or the banks assets, massively overinflated, against all historic measures of affordability. Keeping millions who are not on the housing ladder yet, from being able to afford their own property. Keeping them in Debt Slavery!

Its Price Fixing.And its happening right out in the open.

"We are all powerful. The normal rules do not apply to us", says Merv and the government.

So Bankers are paying themselves bonuses, based upon fake 'mark to market' valuations.

Rather than selling at the true market value.

The housing 'market' is a misnomer, as it is not a 'market', by any definitive measure.

The government controls and dictates production, distribution, prices, etc.

They Compel.

The Planned economy, is a direct contrast to the democratic model, of a 'Free Market Economy'

Instead of the state controlling and organizing industry as though the Banking corporations were passive, they are seen as being necessary partners.

"Fascism should more properly be called corporatism because it is the merger of state and corporate power." Benito Mussolini

And Bankers are paid huge bonuses, on these imaginery fake portfolio's.

It shows our 'plutocratic' government and banking system for what it is. Completely corrupt. Downright evil in fact.

It's blatant economic fascism.

This country is run by Neo Corporatists.

Edited by Dan1

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I've followed a number of repossessed properties at auctions.

One example would be, A converted Barn, in a nice area, in Lincolnshire. [Valued at £350k at peak 2007 price.]

The house was a repossession, owned by a State Owned Bank, and I followed its progress as it went to auction on 4 seperate occasions over the course of a year.

Each time it received over ten bids.

But never Attracted a higher bid than £110k. [A 68% reduction from peak]

At each of the 4 auctions, it did not meet the undisclosed reserve set by the bank.

So each time it was withdrawn.

I found the last Estate Agent to represent the property. And called him.

The Estate Agent told me that the bank did not have to lower the reserve, as the taxpayer is bailing out the bank, therefore the reserve will be kept at stupidly high levels, until it is sold.

As far as I am aware the property is still sitting on the banks books.

The government complains about the "lack of housing" as a cause of the problem, for FTB'ers, yet they sit back and let the banks hold large

amounts of the potential housing stock.

It is criminal that foreclosed housing has a set reserve price. Set By Banks!

Surely there is no truer valuation, of what a property is actually worth, than what someone is prepared to pay for it at auction?

....

Blatant False accounting and fraud, which is aided and abetted by our corrupt government.

....

Its Price Fixing.And its happening right out in the open.

The problem here is that the banks have to decide whether or not it is worth selling the property. The lender is trying to get the money it is owed. So an offer of £110k may not come anywhere near the mortgage, so would hardly be worthwhile if there is still another £220k to get. The interest is still accumulating on the loan, and the lender is obliged to chase the ex-owner for the shortfall after the sale.

Edited by arrgee1991

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It's a Scots dialect word and serves no purpose in standard English except to make anyone who uses it sound pretentious.

Just to be clear - this word was chosen by me - it wasn't paraphrased from Mervyn Brown.

And I'm Scottish - and this is part of my normal lexicon. Wasn't even aware that it was considered a "non-standard" word by other English speakers.

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Just to be clear - this word was chosen by me - it wasn't paraphrased from Mervyn Brown.

And I'm Scottish - and this is part of my normal lexicon. Wasn't even aware that it was considered a "non-standard" word by other English speakers.

In that case I apologise. I only jumped on it because the word seems to be taking hold among certain (southern) English speakers who think it sounds faintly legalistic or 'posh' and it always makes me cringe to see it.

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  • 284 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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