The Bank Of England Clueless Thread

[Tapori]

Slimy fecker is Carney - Says house price inflation is again due to supply and not monetary policy as a whole - Then goes on to talk about all the constraints they are going to put on mortgage levels but still won't address the fact that monetary policy influences significantly Asset price growth in a big way.

Insists also that monetary policy "doesn't drive the fundamentals."

- Give the guy asking the questions a fookin medal. Rips Carney up at the end. Watch 13:18. - Chair talks about his mate in Chiswick's semi detached house being about 850k+ and that his mate "works in finance," and has specifically told him that extortionate price growth in assets, especially Houses, is due to "easy money," i.e.: Loose, cheap lending via BoE Monetary policy.

Ta Digsby - Fukn Gold

P.S. - From Digsby's time stamp on the video: Watch Sharif's reaction when the Chair mentions the threat of  a bigger crash if Asset price inflation continues unsustainably:  

He asks whether asset price inflation is a problem as the longer this continues, will it not mean a larger inevitable correction and therefore a bigger crash?

Sharif won't admit it with her words, but her severe lack of a riposte and a rather telling shrug of the shoulders and hesitant sigh, shows clearly how fecked many ppl are gonna be. She knows it's gonna happen. Carney knows it's gonna happen and the Chair knows it's gonna happen.

I suspect Carney and Sharif and Co will not be here when it eventually does. So about 2018 onwards...

 

 

Edited November 15, 2016 by Tapori

[billybong]

2 hours ago, Digsby said:

Todays Treasury Committee meeting:

http://parliamentlive.tv/Event/Index/074e655b-c7db-4f9e-985d-b561784099a1

See 13:08 onward for Steve Baker asking whether the BoE has "lost the plot" with reference to William Hague's recent article, whether the unwinding of current monetary policy will cause a crash, and the extent to which money policy is to blame for HPI ("supply, innit?").

Watching that bit it became ever more clear that they don't have a clue how to get out of the appalling situation that they've got Britain's economy into.  Carney is just as glib as Cameron maybe more so - glib, obfuscating and wrapping it all in jargon.

His opinion that house prices are high because of lack of supply is so misleading demonstrating contempt for the Treasury Committee.  To be fair the person questioning him did point out that it's also "easy money" but he shouldn't have to point that out to the governor of the BoE.  That should have been volunteered by Carney in the first place but no he glibly obfuscated.

It's the health of the British economy he's continuing to damage with his obfuscating and self serving machinations - he should be on the next plane back to Canada.

Edited November 15, 2016 by billybong

[Tapori]

^ Aye, they know they're screwed either way. Best not to be there when it all goes tits up.

Unfortunately, this won't even be covered by Newsnight, let alone the business programs in the MSM or shows of note.

[Digsby]

My feelings too, both. There is a moment, probably not more than 20 mins before that, where Carney says, with a straight face, "monetary policy is not loose" 

[RickyD]

2 hours ago, Tapori said:

Slimy fecker is Carney - Says house price inflation is again due to supply and not monetary policy as a whole - Then goes on to talk about all the constraints they are going to put on mortgage levels but still won't address the fact that monetary policy influences significantly Asset price growth in a big way.

 

I watched the video with astonishment. I refuse to accept that Carney truly believes that 'easy money' doesn't affect house prices whatsoever. He graduated from Oxford right? 

[nome]

1 hour ago, Digsby said:

My feelings too, both. There is anment, probably not more than 20 mins before that, where Carney says, with a straight face, "monetary policy is not loose" 

Did he really say that? 

Without the slightest hint of a wry smirk or a cheeky glint IN His eye?

[zugzwang]

2 hours ago, Tapori said:

^ Aye, they know they're screwed either way. Best not to be there when it all goes tits up.

Unfortunately, this won't even be covered by Newsnight, let alone the business programs in the MSM or shows of note.

"Now isn't the time to apportion blame," Gordon Brown declared famously in an interview in February 2009.

If not now then when, I remember thinking at the time, knowing full well that the answer was almost certainly never.

[Digsby]

55 minutes ago, nome said:

Did he really say that? 

Without the slightest hint of a wry smirk or a cheeky glint IN His eye?

He did.  Watch for yourself. Not the slightest glimmer of mirth. I'd even say he believes it.

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Says man seeking to deflect blame.

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[spyguy]

Macro economists. Gotta luv em.

Like a drunk playing darts.

[darkmarket]

6 hours ago, billybong said:

Watching that bit it became ever more clear that they don't have a clue how to get out of the appalling situation that they've got Britain's economy into.  Carney is just as glib as Cameron maybe more so - glib, obfuscating and wrapping it all in jargon.

Strange performance from Carney today, almost seemed like he didn't care whether he came across as convincing. Faced with a politician arguing HPI is due to both supply not meeting demand and loose monetary policy, you had an economist counter that monetary policy is ineffectual in this regard. Dangerous game he's playing, in terms of his credibility.

I noticed he didn't mention the pure technocracy angle at all, he seems to know he's fragile faced with accusations of political partisanship, and if anything it looks like the consensus between him and Osborne will continue with Hammond.

[Noallegiance]

I listened to some of it.

Seems to me like folk don't ask questions of people in this manner without in between the lines saying "We know your game, son".

And Carney knows it.

[darkmarket]

1 minute ago, Noallegiance said:

I listened to some of it.

Seems to me like folk don't ask questions of people in this manner without in between the lines saying "We know your game, son".

And Carney knows it.

Right now though it's Hammond and Carney and there's no sign of any difference between them on policy, which may explain the contempt for the Committee.

[Tapori]

That Committee standoff and the current economic situation with Macro  policy (or lack Of), the BoE, Carney and MP's, should be accompanied by this soundtrack:

 

It's surreal. Almost Curb Your Enthusiasm-esque horrific bewilderment.

Edited November 15, 2016 by Tapori

[Funn3r]

Utter p155-take of Carney, pure gold

https://www.theguardian.com/business/2016/nov/15/mark-carney-bank-of-england-brexit-treasury-select-committee

[dougless]

1 hour ago, Funn3r said:

Utter p155-take of Carney, pure gold

https://www.theguardian.com/business/2016/nov/15/mark-carney-bank-of-england-brexit-treasury-select-committee

It is rare that I laugh out loud but that did the trick.

[Gigantic Purple Slug]

21 hours ago, Tapori said:

^ Aye, they know they're screwed either way. Best not to be there when it all goes tits up.

Unfortunately, this won't even be covered by Newsnight, let alone the business programs in the MSM or shows of note.

What's interesting is that the positioning has now started in earnest.

The "it's supply not cheap money" is a pretty good way of throwing the dead cat into someone else's back yard.

When people start to position themselves like this it's normally because they feel that the crunch point is not far off. 

In many ways I agree with Carney. Macro policy is a pretty blunt instrument, and if that instrument blows bubbles in various bits of the economy (which it always will) then its up to the government to implement micro policy to prevent those bubbles getting out of control. 

[Eddie_George]

It's child's play for the Central Banks and Governments to determine where investment goes.

If they wanted money to stop flowing into property (or any other bubbles) then they could just discourage it with targeted taxes. They don't do this because they like the short-term effect it has on their own assets, and on voters' intentions. That's all there is to it.

 

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