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

Mailed Mark Carney - Lacky Response .....

Recommended Posts

Hi Lacky,

Thanks for the reply.

I think you’ve missed the point I was making – All I’m seeing is house prices rising the governors own prediction of it being 2016 before we see a rate rise just shows that the dodgy money him and his team have conjured up isn’t actually helping the economy it’s flowing straight back into the bubble that is the housing market. This is the exact same stupidity that lead us to the crash in 2008, if it was going in to the REAL economy, you’d see unemployment falling like a stone!

On the subject of CPI target, it’s fair to say the committee have been utterly hopeless when it comes to predicting inflation – it’s been over target now for so long and so many letters have been sent to the chancellor explaining why they’ve failed to hit the target how they all haven’t stepped down with embarrassment I’ll never know.

If the governor was truly aware of where his QE money is going he’d have put the rates up by now to cool off the market – but he’s actively encouraging it.

In summary his remit IS the CPI target, they’ve failed in relation to this, they continue to fail and the dodgy money is re-inflating the bubble that gave us the 2008 disaster and that is a fact – they should all stand down, they’re incompetence leaves me speechless.

When I last contacted the bank I asked how much funny money had been printed – it was £350bn. That was at least a year ago and you STILL need forward guidance on rates? The plan isn’t working is it? (Unless of course the plan is to pump up houses and crash the economy again and I suspect that will take two years)

Rates need to go up now, I’m fed up of seeing a knackered economy where the debtors are being protected. They haven’t got any money and they savers aren’t spending, in fact they’re just saving harder!

Thanks

Frozen Out

From: Enquiries [mailto:Enquiries@bankofengland.co.uk]

Sent: 04 September 2013 15:23

To: 'Frozen Out'

Subject: RE: FAO Mark Carney

Dear Mr Out,

Thank you for your email dated 31 August addressed to the Governor, which has been passed to me to reply on his behalf.

I can assure you that the Governor, and the Monetary Policy Committee (MPC) more broadly, has tremendous sympathy for savers. In particular, the MPC understands the difficulties faced by those who rely on interest from their savings to supplement their income. I know it must seem hard to understand why prudent savers appear to be penalised when they did not cause the current economic challenges. That is why the Committee is committed to securing a strong recovery with higher employment, which will ultimately mean higher interest rates. In a broader context, it will ensure that future generations are part of a more sustainable economy with better prospects. One of the lessons from past recessions is that raising interest rates too soon can weaken economic growth and actually prolong the length of time it takes to fully recover. The Governor has also stated the importance of achieving growth while bringing inflation back to target, which will also helps savers. The Committee’s policy prescription means we can all be more confident of a stronger economy and path back to where savers receive more normal returns on their savings.

You express a concern about the growing cost of housing. House price inflation is considered carefully by the MPC not least because housing wealth serves as collateral for borrowing. Changes in housing wealth may therefore affect consumption and aggregate demand, eventually impacting on inflation. However, it is essential to understand that the MPC does not have a target for house prices – its only remit being to target CPI inflation. Decisions taken by the MPC are always made in order to achieve that target. Nevertheless, the Governor is acutely aware of the risks that rapidly rising housing prices can bring. In an interview with the Daily Mail on 30 August, he said: ‘‘We have the responsibility to assess emerging vulnerabilities in the economy such as housing, make those assessments and recommend action...Interest rates are principally an instrument of monetary policy for achieving the inflation outcome and there are other tools that address risks.’’

I hope that this information is useful to you. Thank you once again for contacting the Bank.

Kind regards

Bank of England Lacky

Public Information & Enquiries Group

Bank of England|Threadneedle St|London EC2R 8AH|

enquiries@bankofengland.co.uk

From: Frozen Out

Sent: Saturday, August 31, 2013 3:39 PM

To: Enquiries

Subject: FAO Mark Carney

________________________________________

This email has reached the Bank via the Internet or an external network

________________________________________

Dear Mark,

I’m writing to first welcome you to the United Kingdom. I was hoping with your arrival we might finally see some sense returned to our banking system but unfortunately you do appear to be going down the exact same path as your predecessor.

Today my bank contacted me to tell me that my already pitiful rate of interest on my ISA is to be cut yet again. I hold YOU directly responsible for my worsening position with all the ‘funny money’ being pumped into the market by you and your team.

Your current policy of holding rates where they are until unemployment comes down, you’d think with all this new money this would happen very quickly, but your forecast suggest it’ll be 2016 before we’re likely to see a base rate rise – in line with this observation I’m seeing house prices start to take off again, I don’t think it’s unreasonable to assume all your funny money is in fact going back into housing – in effect to re-inflate a bubble that in a large part was responsible for the financial crisis of 2008. A completely unproductive use of the QE money that’s destroying MY personal ‘wealth’.

I think I know what’s coming next too – bank bailout round 2 – You’ll also be responsible for this if it happens.

Between you and George Osborne I think we’re heading for complete disaster once again and I guess just like last time, the people in positions such as yourself will say “nobody could have foreseen this happening”

I saw the 2008 collapse coming years before – so maybe I should be in a job with an inflation linked pension and getting paid your level of salary?

Thanks

Frozen Out

_____________________________________________________________________

This e-mail originated from the Internet and has been scanned for known viruses by the Messagelabs SkyScan Service.

________________________________________

This e-mail is intended for the addressee(s) named above and any other use is prohibited. It may contain confidential information. If you received this e-mail in error please contact the sender by return e-mail.

The Bank of England does not accept legal responsibility for the contents of this message if it has reached you via the Internet, as Internet communications are not secure. Any opinions expressed are those of the author and are not necessarily endorsed by the Bank of England.

Recipients are advised to apply their own virus checks to this message .

________________________________________

Edited by FrozenOut

Share this post


Link to post
Share on other sites

No doubt you're on a list somewhere in Cheltenham.

And now you're on the list for knowing about the list!

I'm pleased from their response that they at least acknowledge the prudent are being screwed over and there is some awareness of HPI. Not that it will make any difference to interest rates. Saving the banks ergo the economy is what influences all their decisions.

Share this post


Link to post
Share on other sites

That's interesting thanks for posting it. I was expecting a standard response to queries of type F3 but it looks like someone actually responded to what you wrote.

Unfortunately to me it just shows that they have no idea what is happening on the ground. Talking vaguely about 'the risks rapidly rising house prices can bring' when in fact we are all dealing with the aftermath of the 'rapidly rising house prices' that occurred from around 2000 to 2008 already. As though its some theoretical possibility that may cause some harm in the future. Hello? People in their 30s are living with their parents TODAY, sales volumes are on the floor TODAY, renting is cheaper than the interest portion of a mortgage on the same property despite 0.5% base rate TODAY, we have EMERGENCY INTEREST RATE LEVELS NOT SEEN FOR 300 YEARS *TODAY*.

This vague awareness that it might cause a problem I guess but never mind don't worry your little head about it attitude is completely ridiculous. They haven't got the faintest clue.

Share this post


Link to post
Share on other sites
You express a concern about the growing cost of housing. House price inflation is considered carefully by the MPC not least because housing wealth serves as collateral for borrowing. Changes in housing wealth may therefore affect consumption and aggregate demand

Translation: Higher house prices mean homedebtors have more equity and the mortgage books of the banks look better. Higher house prices also make homedebtors spend more money they don't have, boosting demand. We see no downside to artificially high asset prices, so kindly go f*** yourself.

Edited by Dorkins

Share this post


Link to post
Share on other sites

However, it is essential to understand that the MPC does not have a target for house prices – its only remit being to target CPI inflation. Decisions taken by the MPC are always made in order to achieve that target. Nevertheless, the Governor is acutely aware of the risks that rapidly rising housing prices can bring. In an interview with the Daily Mail on 30 August, he said: ‘‘We have the responsibility to assess emerging vulnerabilities in the economy such as housing,..

Come off it.

It's become blatantly obvious to most everyone that the BoE operates a single lever policy - house prices.

Edited by billybong

Share this post


Link to post
Share on other sites

Translation: Higher house prices mean homedebtors have more equity and the mortgage books of the banks look better. Higher house prices also make homedebtors spend more money they don't have, boosting demand. We see no downside to artificially high asset prices, so kindly go f*** yourself.

They think high house prices are the lifeboats on the Titanic that is the UK.

We don't.

Share this post


Link to post
Share on other sites

God its like something a politician would write.

This bit I love

You express a concern about the growing cost of housing. House price inflation is considered carefully by the MPC not least because housing wealth serves as collateral for borrowing. Changes in housing wealth may therefore affect consumption and aggregate demand, eventually impacting on inflation.

Collateral for borrowing? Its almost like they expect the borrowers to default. Who cares if they can afford the loan, so long as theyve got property to secure it against. Whatever happened to mervs 'house prices are a manner of opinion, the debt is real'?

This is exactly the talk that has led to every other bubble. They never learn. They dont want stability. They just want bigger and bigger bubbles.

Share this post


Link to post
Share on other sites

God its like something a politician would write.

This bit I love

You express a concern about the growing cost of housing. House price inflation is considered carefully by the MPC not least because housing wealth serves as collateral for borrowing. Changes in housing wealth may therefore affect consumption and aggregate demand, eventually impacting on inflation.

Collateral for borrowing? Its almost like they expect the borrowers to default. Who cares if they can afford the loan, so long as theyve got property to secure it against. Whatever happened to mervs 'house prices are a manner of opinion, the debt is real'?

This is exactly the talk that has led to every other bubble. They never learn. They dont want stability. They just want bigger and bigger bubbles.

We should all tweet that quote - the bank of england thinks encouraging MEWing is prudent. Just wow. Perhaps someone should send it to Faisal Islam - he seems to have more clout then most without being typecast as doom monger like Max K etc.

Completely outrageous.

Share this post


Link to post
Share on other sites

"has tremendous sympathy for savers"

I reckon burglars feel bad about all the people they steal from.

You'd be better contacting UKIP and ask them to do something about the banks in their manifesto....a real vote winner.

There is nothing we can do about the BoE at present....it's disgraceful. A bunch of bankers making policys to suit bankers.

Regarding this:

"You express a concern about the growing cost of housing. House price inflation is considered carefully by the MPC not least because housing wealth serves as collateral for borrowing. Changes in housing wealth may therefore affect consumption and aggregate demand, eventually impacting on inflation."

If house prices weren't so high then people would have plenty money to buy stuff and wouldn't have to borrow, basically what he is stating here, the want house prices to be high so you have no choice but to borrow from banks.

The BoE committee should be locked up for doing that.

Share this post


Link to post
Share on other sites

Translation: Higher house prices mean homedebtors have more equity and the mortgage books of the banks look better. Higher house prices also make homedebtors spend more money they don't have, boosting demand.

What they've utterly failed to realise is that the MEWing of the early noughties was a one-off that artifically and temporarily boosted the economy. Large scale MEWing requires significant HPI above wage inflation, ie, 10% plus IMO. That cannot be sustained in the long run if salaries aren't matching that. It's a dead-end - the house prices that have gone up in that scenario must ultimately come down. You can't keep pushing the MEWing button when no new real wealth is being created to support it.

Share this post


Link to post
Share on other sites

Thank you for the post.

Your emails to BOE are surely the only ones with the sane,realistic and intelligent content they had in decades with any politician,media or Government entity.That says it all about the times and the UK we live in.

Well done.

Share this post


Link to post
Share on other sites

Thank you for the post.

Your emails to BOE are surely the only ones with the sane,realistic and intelligent content they had in decades with any politician,media or Government entity.That says it all about the times and the UK we live in.

Well done.

Yeah, good work. Better than moaning and moping around on here.

Share this post


Link to post
Share on other sites

I would argue that borrowing is the collateral against which house prices are raised.

Typical Bank of England technocratic nonsense that fails to recognise the self referencing nature of their stupid money supply pump.

Agreed. No wonder we're screwed, HPIphilia is in the DNA of UK policymakers at every level.

Share this post


Link to post
Share on other sites

"has tremendous sympathy for savers"

I reckon burglars feel bad about all the people they steal from.

You'd be better contacting UKIP and ask them to do something about the banks in their manifesto....a real vote winner.

There is nothing we can do about the BoE at present....it's disgraceful. A bunch of bankers making policys to suit bankers.

Regarding this:

"You express a concern about the growing cost of housing. House price inflation is considered carefully by the MPC not least because housing wealth serves as collateral for borrowing. Changes in housing wealth may therefore affect consumption and aggregate demand, eventually impacting on inflation."

If house prices weren't so high then people would have plenty money to buy stuff and wouldn't have to borrow, basically what he is stating here, the want house prices to be high so you have no choice but to borrow from banks.

The BoE committee should be locked up for doing that.

Bang on the nail.

It is SO depressing reading the utter sh*t those c nts write..... :rolleyes:

Share this post


Link to post
Share on other sites

We should all tweet that quote - the bank of england thinks encouraging MEWing is prudent. Just wow. Perhaps someone should send it to Faisal Islam - he seems to have more clout then most without being typecast as doom monger like Max K etc.

Completely outrageous.

It is outrageous. If they really believe that, it proves they have no clue whatsoever about economics.

Housing is used as collateral, because that's where all our ******ing money has gone.

The cost of land is just a tax on the young and productive paid to the old and unproductive.

They transfer all then collateral to rent seekers,and then wonder why no one is investing in industry.

Morons.

Edited by (Blizzard)

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   205 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

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.