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The Masked Tulip

Newsnight Now - Is Mark Carney Getting Cold Feet About The Uk Housing Market?

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Kaletsky talking rubbish as usual...thinks £170k average house price is low.

People like him keep getting airtime to say, IMPO, this nonsense. VI propaganda IMPO.

170K might not be much to him but to people in the regions 170K is a ludicrously high asking price, especially when you take into local wages in an area.

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Kaletsky talking rubbish as usual...thinks £170k average house price is low.

Just had the misfortune to see him be interviewed. Is he a massive VI or is he retarded?

He said he was one of the few economists that was for H2B, and not surprisingly was against reigning in FLS.

He must be mortgaged to the hilt. What an utter idiot.

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170k isn't that expensive? It is to me.

What a tool.

The thing is such people NEVER get challenged on this - people like Emily Matlis probably earn well into 6 figure salaries so such comments just fly over their heads.

It is the equivalent of a journalist like her asking a politician if they know the price of a pint of milk - a journalist in touch with what the average person earns would have challenged him on the 170K claim. Sadly, BBC presenters earn such vast salaries that they are completely out of touch.

I see the item was done by Andy Verity who used to do the finance on 'Wake Up To Money' on Fivelive - one of the few BBC types to not buy into the rising house prices VI propaganda IMPO.

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Just had the misfortune to see him be interviewed. Is he a massive VI or is he retarded?

He said he was one of the few economists that was for H2B, and not surprisingly was against reigning in FLS.

He must be mortgaged to the hilt. What an utter idiot.

Even after Lehmans and AIG went under Kaletsky was still arguing that recession was unlikely. A true flat-Earther, he's been in denial about this comprehensive failure ever since. As good a case for closing all the world's Economics departments and starting again as you're likely to find anywhere.

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I honestly wonder whether the one thing that might have more impact on people's thinking and behaviour than any fancy economic scheme is if the asking price of all houses for sale started being defined thus:

Median wages per utilisable square metre

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£170k is about half the annual salary of a Newsnight presenter.

Paxman and Kirsty Squawk are on north of £1M per annum.

Well rewarded for their propaganda incisive journalism.

http://www.theguardian.com/media/2001/dec/13/broadcasting.bbc 2001 !

Wark Clements made £2.5m from their previous contract with the corporation and they will receive at least £1m a year from the new agreement.

Edited by ZeroSumGame

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The funding for lending has a very minor effect compared to Help To Buy.

To cool the market they need to restrict Help To Buy so a 0% deposit is required rather than 5%. If you can save 10% you are a much better risk and than someone who can only raise 5%.

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If you can save 10% you are a much better risk and than someone who can only raise 5%.

Not when houses are 50% overpriced.

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£170k house price, it's only 4.5 times average household incomes.....

Yes, and it's not like at least one person in that household will ever be long term sick, made redundant, have to spend time raising kids etc. The old 3.5X a single salary measure of affordability at least meant there was some form of backup if life tossed you an hand grenade.

Obviously singletons have always had it extra tough in terms of buying a place on their own.

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£170k house price, it's only 4.5 times average household incomes.....

The paywall employed by the Times had made me forget about Kaletsky entirely. I'd assumed he'd have been awarded a position at the LSE(if not the Lords) by now.

I've only seen him on Reuters in recent times.

It's hard for many people to accept in their quest for fairness, and feeling bad for those who've chosen to buy houses (in 2008, some were still pitying those who bought in 2003/04) that they have active market enemies, wanting their wealth-value or/and status positions protected. Who don't care about non-owners whatsoever. Work harder families, and take on more debt to afford, as we lock in HPI.

BELOW: Mortgage lending or cash-buyers? Cash buyers and yield chasers at high prices from within the UK, running down their savings. Banks without FLS, reliant on savers to lend, having less to leverage to when many savers already deployed their money back into over-valued market.

British home-owners quick to catch onto what? That their homes likely to go up in value, so less need to think about selling? What? Surely it matters what buyers think the most. They set the values for the whole market.

July 5, 2013

By Anatole Kaletsky

http://in.mobile.reuters.com/article/financialsSector/idINL2N0FB1AG20130705

...He has arrived at the BoE at the precise moment when the economic figures have started to suggest that the British economy is pulling out of its longest and deepest recession on record. One of the main reasons for this turnaround has been a sudden pickup in housing prices and mortgage lending, the traditional driving forces of the British economy. This improvement, in turn, has reflected a bold new government-backed borrowing program, whereby the British Treasury is guaranteeing up to £600,000 of new mortgage debt for anyone who can put up 5.0 percent of equity into buying a home.

While this audacious policy attracted surprisingly little attention in the media when George Osborne announced it in his March budget, British homeowners and bankers were quick to catch on.

As a result, house prices are rising rapidly across Britain, mortgage lending has rebounded to its highest level since the Lehman crisis and homebuilders' shares have almost doubled. And all this is before the government incentives are expanded from newly-built houses to secondhand properties and remortgages in January 2014. For the moment, house prices are being bid up by cash-rich buyers who are front-running the government subsidies, in the confident expectation that a full-scale property boom will begin in 2014.

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Like a number of these sorts of guys, he really does seem to be a shill on behalf of 'rich people'.

I guess such people, like artists of old, have a 'benefactor' whose interests they take care of.

Why I don't pay for paywalls. Why should I pay for propaganda from the rich delivered?

Kaletsky I think has mentioned that most of his assets are a big London house.

Edited by aSecureTenant

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The funding for lending has a very minor effect compared to Help To Buy.

To cool the market they need to restrict Help To Buy so a 0% deposit is required rather than 5%. If you can save 10% you are a much better risk and than someone who can only raise 5%.

FFL has kept rates low. HTB will not.

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If one were to be charitable to mervyn king it would seem he spent a few years trying to show willingness in providing tools for institutions to step back off the ledge. Instead he constantly warned that people were not getting the message. They were taking the gift horse and carrying on as before.

Is this the BoE "getting tough"?

(Id hate to see being soft BTW)

Edited by 7 Year Itch

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He was talking about FLS and the housing market in respect of growth when it was introduced.

If you're talking about how to generate GDP when there is none, which was the case when FLS was introduced, then his arguments are rational.

I'm fairly sure he agreed that FLS for housing finance was no longer needed, which is also rational, though FLS lending to the housing market is quite insignificant I think.

The whole Carney thing yesterday was mostly him pretending he's got macro prudential 'tools' and he's prepared to use them. Yadda yadda yadda......he doesn't and he hasn't. He's all talk.

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In September 2007 (NB the month) I had a public argument with Kaletsky at an investment conference that we were at grave risk. he argued no chance.

What happened a month later?

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