Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Bond Bubble Threatens Financial System, Bank Of England Director Warns

Recommended Posts

http://www.guardian.co.uk/business/2013/jun/12/bond-bubble-threatens-financial-system

A key Bank of England policymaker on Wednesday warned of the risks to global financial stability of the bursting of a central bank-created global bond bubble which he believes has started to deflate in recent weeks.

Andy Haldane, a Bank of England director, in wide-ranging evidence to MPs on the Treasury select committee in which he criticised the new financial policy committee (FPC), he said that the biggest risk to the financial system would be a significant rise in the yields on government bonds.

"The biggest risk to global financial stability is a disorderly reversion of global bond yields," he said, pointing to "shades of that" had taken place in the last two to three weeks.

"We've intentionally blown the biggest bond bubble in history," Haldane said, saying there "had to be vigilance to that bond bubble deflating".

And no plan about what to do apart from keep on inflating and hope it all works out?

Still central bankers the people you can trust.

Share this post


Link to post
Share on other sites
"The biggest risk to global financial stability is a disorderly reversion of global bond yields," he said, pointing to "shades of that" had taken place in the last two to three weeks.

Then maybe you'll have to put up interest rates. Allowing banks to go after the assets of those who can't afford to repay their debts with higher rates.

Instead of continuing to punish and price out younger people, who can't understand why fairly standard houses which should be around £150K-£200K, are £300K-£500K when they come to market, given there is so limited supply. Give some of those who haven't had a worry past 5 years during the 'crisis' in their homes which have massively inflated in value of their wealth something to think about for once.

Share this post


Link to post
Share on other sites
"The biggest risk to global financial stability is a disorderly reversion of global bond yields," he said, pointing to "shades of that" had taken place in the last two to three weeks.

"We've intentionally blown the biggest bond bubble in history," Haldane said, saying there "had to be vigilance to that bond bubble deflating".

There will be NO tapering. Only more QE.

Edited by Take Me Back To London!

Share this post


Link to post
Share on other sites

Max Keiser has been saying this for about a year- so the boys at the BoE are improving- usually they can only see a bubble after it bursts.

Perhaps one day they might achieve the utility value implied by their salary- then again, perhaps not.

Share this post


Link to post
Share on other sites

There will be NO tapering. Only more QE.

Yep, the line will be that it is proven to have worked but we didn't do enough, so time to redouble the efforts.

Once the printing spiral started, there was no stopping it. They are just doubling down on a losing bet and figure that as long as they can keep doubling (using printed money), they'll be OK.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 243 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.