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

Treasury Committee Hearing – November Financial Stability Report

Recommended Posts

Currently being streamed live on Parliament TV.

http://www.parliamentlive.tv/Main/Player.aspx?meetingId=14628&player=windowsmedia

Since the Nov FSR focused a great deal on domestic risks from the UK housing market, we might expect to see several lines of questioning on this subject.

Witnesses:

Dr Mark Carney, Governor

Sir Jon Cunliffe, Deputy Governor, Financial Stability

Dame Clara Furse DBE, and Richard Sharp, Members, Financial Policy Committee, Bank of England

Share this post


Link to post
Share on other sites

Carney sees recent FLS recent modification as "taking the foot off the accelerator rather than putting on the brake" re the mortgage market.

The FPC/MPC currently expect "momentum to continue" in the housing market i.e. house prices to rise this year and increased mortgage transactions.

Share this post


Link to post
Share on other sites

Carney sees recent FLS recent modification as "taking the foot off the accelerator rather than putting on the brake" re the mortgage market.

The FPC/MPC currently expect "momentum to continue" in the housing market i.e. house prices to rise this year and increased mortgage transactions.

"HPI to continue to the next election"...

I'm not sure any words would do it justice.

Share this post


Link to post
Share on other sites

"HPI to continue to the next election"...

I'm not sure any words would do it justice.

Which is odd, since I've already pointed out to them that there is a bubble and they said they would not allow this to happen. :rolleyes:

If the public are telling them there is a bubble and they ignore it and it all collapses, will they be culpable ?

Share this post


Link to post
Share on other sites

Which is odd, since I've already pointed out to them that there is a bubble and they said they would not allow this to happen. :rolleyes:

If the public are telling them there is a bubble and they ignore it and it all collapses, will they be culpable ?

Faisal Islam (@faisalislam) tweeted at 2:57 pm on Wed, Jan 15, 2014:

Carney says a Bubble would be when lender is lending with deteriorating underwriting standards because of expectation of house price rises.

(

)

Share this post


Link to post
Share on other sites

Faisal Islam (@faisalislam) tweeted at 2:57 pm on Wed, Jan 15, 2014:

Carney says a Bubble would be when lender is lending with deteriorating underwriting standards because of expectation of house price rises.

(

)

eh ?

I thought a bubble would be defined by crazy government under-written lending pushing asking/sale prices up to the 2007 economy/bank destroying levels.

Shows you what we know.

Share this post


Link to post
Share on other sites

eh ?

I thought a bubble would be defined by crazy government under-written lending pushing asking/sale prices up to the 2007 economy/bank destroying levels.

Shows you what we know.

He talks how too big to fail is still here, so no wonder banks are lending money that the taxpayer will cover.

Its even more rotten then in 2007 as at least then there was no such thing as too big to fail .... or so we thought!

Share this post


Link to post
Share on other sites

Hi guys - sorry quick question - does anyone know who moderates the "House prices and the economy" board today? I posted a fairly long topic this morning based on Labour's Property company "labour party properties ltd" and it doesn't seem to have made it through - wanted to ask them why.

For new members, i think your topic starts in the main fprum are moderator approved before they appear.

Share this post


Link to post
Share on other sites

I was honestly thinking the MPC would potentially step in to cool the market by raising LTVs and in turn stopping HTB, but the way Carney is talking it's as if he's wants prices to continue at the same pace and that it's a good thing. Now that he has predicted something, he's hardly going to step in to prove himself wrong is he?

He will only step in if the banks start committing fraud (again).

Share this post


Link to post
Share on other sites

I was honestly thinking the MPC would potentially step in to cool the market by raising LTVs and in turn stopping HTB, but the way Carney is talking it's as if he's wants prices to continue at the same pace and that it's a good thing. Now that he has predicted something, he's hardly going to step in to prove himself wrong is he?

He will only step in if the banks start committing fraud (again).

Indeed.

It's not their problem until it collapses.

It's not like they're the regulator or anything..........Bonuses? Fill yer boots fellas, taxpayer will bail you out again!

Share this post


Link to post
Share on other sites

Indeed.

It's not their problem until it collapses.

It's not like they're the regulator or anything..........Bonuses? Fill yer boots fellas, taxpayer will bail you out again!

You spent a long time saying Merv was doing the best he could. That he was using monetary policy to stable the ship but he needed the political establishment to act fiscally to fix things.

This guy seems to have crossed that particular line and not in a good way. Vigilance of wage inflation has become wage inflation cheer leading.

Share this post


Link to post
Share on other sites

Carney sees recent FLS recent modification as "taking the foot off the accelerator rather than putting on the brake" re the mortgage market.

The FPC/MPC currently expect "momentum to continue" in the housing market i.e. house prices to rise this year and increased mortgage transactions.

Echoing Bernanke's false distinction between tapering and tightening. It's credit acceleration that makes a difference not momentum.

Share this post


Link to post
Share on other sites

Carney sees recent FLS recent modification as "taking the foot off the accelerator rather than putting on the brake" re the mortgage market.

The FPC/MPC currently expect "momentum to continue" in the housing market i.e. house prices to rise this year and increased mortgage transactions.

With wage growth muted and salary multipliers capped at about 4x salary I am struggling to see how this momentum continues. Will it be driven by the bank of mum and dad? Some do have alot of equity that could be swapped for debt :)

I am not sure where that leaves the pension?

Edited by Ash4781

Share this post


Link to post
Share on other sites

Carney says a Bubble would be when lender is lending with deteriorating underwriting standards because of expectation of house price rises.

Yes, the problem with the Tulip Mania bubble was... deteriorating underwriting standards. Sheesh, they can't half talk nonsense, these people :)

Share this post


Link to post
Share on other sites

So Government are saying: Bank of England will step in to stop price rises (well actually they don't say to 'stop price rises' they've coined the term 'bubble'). And the BoE are saying (We'll stop a bubble (which we will never admit is happening), but growth in prices is fine and is down to a 'lamentable' lack of houses (not an abundance of cheap credit) - talk to your government about the lack of housing.

So both are looking to the other one, whilst both doing nothing. They have even gone so far as to predict the very price rises that people are complaining about. They are not going to stop them. They clearly don't want price stability, they want house price growth - both the government and the BoE?

Can someone please give me some counter arguments because I see no other option now....

Share this post


Link to post
Share on other sites

So Government are saying: Bank of England will step in to stop price rises (well actually they don't say to 'stop price rises' they've coined the term 'bubble'). And the BoE are saying (We'll stop a bubble (which we will never admit is happening), but growth in prices is fine and is down to a 'lamentable' lack of houses (not an abundance of cheap credit) - talk to your government about the lack of housing.

So both are looking to the other one, whilst both doing nothing. They have even gone so far as to predict the very price rises that people are complaining about. They are not going to stop them. They clearly don't want price stability, they want house price growth - both the government and the BoE?

Can someone please give me some counter arguments because I see no other option now....

Believe what they say do !!!

Edited by TheCountOfNowhere

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:   203 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.