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Will Carney Bring On The Hpc?


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SEE THE SNIPPET FROM THIS ARTICLE... http://www.counterpunch.org/2013/01/17/how-central-banking-works/ AND ASK YOURSELF

IS Mr Carney 'the 'best possible candidate' for the job of Governor at the B of E, or in fact a Keynesian nutcase hooked on aggressive QE which will do nothing but damage our UK economy, just as we are finding out that is exactly the kind of disaster he has helped along in Canada?

"If you want to know why Canada’s housing market is headed for the shitter, look no further than Bank of Canada chief Mark Carney, the man who kept interest rates locked at 1 percent for 4 years despite the fact that Canadians’ debt-to-income levels have gone through the roof (higher than Americans at the peak of the housing bubble) and despite the fact that housing prices have more than doubled in less than a decade.

Carney has kept the punch bowl brimming throughout his tenure at the BOC, which is why he’s been pegged to take over the top job at the Bank of England (BOE) next year. It’s because destroying Canada’s economy is an achievement that deserves to be rewarded. That’s how central banking works."

Edited by plummet expert
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Carney is widely acclaimed as the best central banker in the world.... he's done a great job?

The trouble of a bubble

As long as rates remain low, reports suggest Canadians can afford the homes they have bought. The latest RBC home affordability index, which measures the monthly cost of maintaining a home in comparison to pre-tax income, found affordability remains within historical norms and actually improved at the end of 2011, even in Vancouver.

Such talk worries Carney. Record levels of debt may not seem like much of a concern as long as home prices keep rising and interest rates remain rock-bottom, he concedes. The big worry is if interest rates rise -- as they must one day -- with a concurrent drop in home prices, those circumstances will set off a cascading series of blows to Canadian consumers. Home owners will see the value of their assets fall at the same time the burden of servicing their debts rise and income growth remains modest. At this point some households will be over their heads in debt; many others will be forced to cut back on spending, slowing economic activity in Canada.

Private sector economists are almost unanimous in the view that housing prices are too high in Canada in relation to fundamentals, such as incomes and the cost of renting. That suggests a correction is coming, in the neighbourhood of 10 to 25 per cent, with some hot markets like Vancouver and Toronto possibly facing an even bigger reckoning.

http://www.cbc.ca/news/business/story/2012/04/06/carney-household-debt.html

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Carney is widely acclaimed as the best central banker in the world.... he's done a great job?

Seems Besci from Turkey is the best:

http://blogs.ft.com/beyond-brics/2013/01/10/turkeys-unorthodox-monetary-policy-gets-a-thumbs-up/#axzz2HyFbtEa9

Part of his unorthodox monetary policies: "One of the key considerations in making sure that the country’s economy doesn’t overheat again is keeping a rein on loan growth, which in the recent past has soared by some 30 per cent a year. Those new loans helped Turks satisfy their hunger for imported goods and so pushed up the current account deficit, perhaps Turkey’s most vulnerable weak spot. In a note issued on Thursday, Fitch says that a new system of bank reserve requirements “may reduce somewhat the risk of a return to very rapid loan growth”.

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Seems Besci from Turkey is the best:

http://blogs.ft.com/beyond-brics/2013/01/10/turkeys-unorthodox-monetary-policy-gets-a-thumbs-up/#axzz2HyFbtEa9

Part of his unorthodox monetary policies: "One of the key considerations in making sure that the country’s economy doesn’t overheat again is keeping a rein on loan growth, which in the recent past has soared by some 30 per cent a year. Those new loans helped Turks satisfy their hunger for imported goods and so pushed up the current account deficit, perhaps Turkey’s most vulnerable weak spot. In a note issued on Thursday, Fitch says that a new system of bank reserve requirements “may reduce somewhat the risk of a return to very rapid loan growth”.

Mrs Watanabe likes Turkey

http://blogs.ft.com/beyond-brics/2013/01/17/mrs-watanabe-ditching-the-aussie-for-the-turkish-lira

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Seems Besci from Turkey is the best:

http://blogs.ft.com/beyond-brics/2013/01/10/turkeys-unorthodox-monetary-policy-gets-a-thumbs-up/#axzz2HyFbtEa9

Part of his unorthodox monetary policies: "One of the key considerations in making sure that the country’s economy doesn’t overheat again is keeping a rein on loan growth, which in the recent past has soared by some 30 per cent a year. Those new loans helped Turks satisfy their hunger for imported goods and so pushed up the current account deficit, perhaps Turkey’s most vulnerable weak spot. In a note issued on Thursday, Fitch says that a new system of bank reserve requirements “may reduce somewhat the risk of a return to very rapid loan growth”.

He is, ahem, brown, and therefore unqualified. The geniuses in charge must have someone like themselves (white, wealthy, & prone to toeing the party line). Do not confuse tokenism (see Chukka Umuna) with the idea that the real levers of state will be given to someone 'different'.

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We alrady have the massive debt and the economy destroying low interest rates, money printing induced inflation, unaffordable cost of living, no industry etc etc etc.

Where is there for this chap to go?

His monetary policies were the same as the uk. These are not his policies but those of his masters.

I can only see there being one outcome to their policy, that being, when they have racked in enough 40% bank bailout deposits then the will hammer up interest rates and down house prices...then take their profits.

They are playing a dangerous game though, one they already lost control of several times.

I still see WW3 coming eventually.

Edited by TheCountOfNowhere
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We alrady have the massive debt and the economy destroying low interest rates, money printing induced inflation, unaffordable cost of living, no industry etc etc etc.

Where is there for this chap to go?

Oblivion.

0% interest rates, printing money to buy Mortgage Backed Securities until nominal GDP reaches a target Goldman Sachs set for him.

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We alrady have the massive debt and the economy destroying low interest rates, money printing induced inflation, unaffordable cost of living, no industry etc etc etc.

Where is there for this chap to go?

His monetary policies were the same as the uk. These are not his policies but those of his masters.

I can only see there being one outcome to their policy, that being, when they have racked in enough 40% bank bailout deposits then the will hammer up interest rates and down house prices...then take their profits.

They are playing a dangerous game though, one they already lost control of several times.

I still see WW3 coming eventually.

That's the game the bankers have played for hundreds if not thousands of years and as you say it`s coming our way sooner or later

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  • 2 months later...

The Carneys are said to be struggling to find somewhere suitable to rent, despite their rental allowance. Sure to be a bit of a DM exaggeration, but I hope his wife is influential on him with her thoughts about fairness.

http://www.dailymail.co.uk/news/article-2299152/Housing-woe-1m-Bank-England-chiefs-wife-blames-influx-wealthy-french-London-struggle-home-despite-5-000-week-allowance.html

Tweeted about the number of people fleeing France's high taxes. Linked to a story about how Hollande is scaling back taxes, adding: 'Maybe I'll be able to find a place to live in London after all.'

I'm still got a flicker of hope he's going to be the outsider that brought in to make the tough decisions. Or a strong governor who will force rebalancing policies through despite Treasury protests. Taper off the QE and raising base rates. Such as the restructuring expert often brought in from the outside to mid-large sized firms, there to take the flak and force through cuts the bosses themselves have been too timid to make.

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The Carneys are said to be struggling to find somewhere suitable to rent, despite their rental allowance. Sure to be a bit of a DM exaggeration, but I hope his wife is influential on him with her thoughts about fairness.

http://www.dailymail.co.uk/news/article-2299152/Housing-woe-1m-Bank-England-chiefs-wife-blames-influx-wealthy-french-London-struggle-home-despite-5-000-week-allowance.html

I'm still got a flicker of hope he's going to be the outsider that brought in to make the tough decisions. Or a strong governor who will force rebalancing policies through despite Treasury protests. Taper off the QE and raising base rates. Such as the restructuring expert often brought in from the outside to mid-large sized firms, there to take the flak and force through cuts the bosses themselves have been too timid to make.

You still hope for that, after Osbourne's proposals for the housing market in the budget?

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You still hope for that, after Osbourne's proposals for the housing market in the budget?

Indeed. Gidiot doesn't have the mental prowess for anything other than a speech by cheat sheet or teleprompter and policy making decisions by magic 8 ball...or his father.

I can confirm Mervyn King and Mark Carney have both seen the new remit and they have both agreed it.[1]

[1] Gidiot Osbourne, Budget Speech 2013, House of Parliament

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You still hope for that, after Osbourne's proposals for the housing market in the budget?

That speech was the cover for Carney to let them drop? If someone is saying "House prices must come down" at least TWICE, and unchallenged, on Sky news review of the front pages, even the most deluded property bull must know the game is up?

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He is, ahem, brown, and therefore unqualified. The geniuses in charge must have someone like themselves (white, wealthy, & prone to toeing the party line). Do not confuse tokenism (see Chukka Umuna) with the idea that the real levers of state will be given to someone 'different'.

Rubbish. Thats what they want you to think. As you know, the Bernankes and Greenspans are Jews and hardly historically friend's of the WASP elite of the American North East. Creed means nothing to these people, its who they can control. Karzai is the perfect puppet, and if his chosen field was economics, would be just as likely to be installed in the BoE as carney. The turk is unqualified because he isnt enough of a bankster stooge. Agree with Chukka Umuma or Obama though, instead of the old boys network that propelled Bush to the top, the affirmative action network propelled these two to where they are. Bush and Obama are equally disastrous, albeit in different ways.

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Difference between US and UK is they had a crash in nominal terms, we really haven't...yet.

That was Bernanke's fault. In 2007/08 he misguidedly shrank the Fed balance sheet in order to fund the Term Auction Facility (TAF) and sundry short-term liquidity programs, which then starved the Primary Dealers of the cash they needed to keep the Ponzi going. US stock markets and house prices crashed as a consequence. He's made up for that error subsequently, of course, reversing direction sharply and expanding the SOMA at an unprecedented rate. Stock markets and house prices have responded accordingly.

fed_soma.png

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