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Lord Turner: Housing Boom Could Drag Uk Back Into Crisis

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"What if the current economic upswing is a false dawn. A blip prior to the removal of American QE and low interest rates. What happens when American households stop deleveraging? Will China experience a property market crash? The UK has an undeclared sub-prime mortgage problem, when happens when new affordability rules are introduced? Will the Euro Zone start to deflate?Do you trust official economic statistics?"

Lots of problems out there just waiting to bring it all crashing down.

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"What if the current economic upswing is a false dawn. A blip prior to the removal of American QE and low interest rates. What happens when American households stop deleveraging? Will China experience a property market crash? The UK has an undeclared sub-prime mortgage problem, when happens when new affordability rules are introduced? Will the Euro Zone start to deflate?Do you trust official economic statistics?"

Lots of problems out there just waiting to bring it all crashing down.

The upswing appears to be driven by people borrowing to buy.

Not borrowing to produce to sell.

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Lots of bubble-attention today:

Via Twitter Ben Thompson Business correspondent, BBC News Channel tweets: "Bank of England urging banks to 'consider risk of future interest rate spikes when they approve mortgages' to reign in 'dangerous lending'"

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The upswing appears to be driven by people borrowing to buy.

Not borrowing to produce to sell.

A very important point that those saying "NEED MORE LENDING!" fail to grasp.

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What did Lord Turner say/do to predict/prevent the previous bubble, does anyone recall?.. :lol:

What did he say/do to earn that peerage? One must assume it's hereditary like his imbecility.

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Events in China, Ukraine and elsewhere putting upward pressure on rates, so they have to put some warnings out in the press?

Q.E.D

They've taken all the idiots 20-50% deposits.....

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Lots of bubble-attention today:

Via Twitter Ben Thompson Business correspondent, BBC News Channel tweets: "Bank of England urging banks to 'consider risk of future interest rate spikes when they approve mortgages' to reign in 'dangerous lending'"

Thats an incredible statement for the BoE to have to make to the banks.

Edited by Reck B

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Thats an incredible statement for the BoE to have to make to the banks.

BOE is asking banks to consider a rate rise. How draconian of them.

Nice to see an acknowledgement of uk sub prime for once though.

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Via Twitter Ben Thompson Business correspondent, BBC News Channel tweets: "Bank of England urging banks to 'consider risk of future interest rate spikes when they approve mortgages' to reign in 'dangerous lending'"

At the start of the economic collapse they said that the dangerous lending was going to be stopped to avoid a repeat - but look lo and behold it just popped right up again.

Not that they would tell a pack of lies or anything, time for remorse is over etc.

Edited by billybong

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What did Lord Turner say/do to predict/prevent the previous bubble, does anyone recall?..

Nothing to prevent it- but he did work in the debt creation industry that created it- the ironically named 'financial services' sector. He only became a 'regulator' (more irony here) after the bubble burst.

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Guest spp

I've noticed some crazy asking prices relative to median wages lately...followed by SOLD signs in many cases.

Some sanity really was returning before HTB was announced.

Madness out there now... <_<

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What did he say/do to earn that peerage? One must assume it's hereditary like his imbecility.

The only thing that more outrages the inhabitants of HPC more than a member of the establishment denying a house price bubble is one who acknowledges the bubble.

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Just saw a piece on itv news...i think it was anyway...talking about house prices and how the boe would soon be given powers to restrict mortgages...but not for now!

These are the powers hey said they had a year ago and would use....someone lying somewhere if you ask me.

More under hand ramping.

This baby has got to blow.

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Just saw a piece on itv news...i think it was anyway...talking about house prices and how the boe would soon be given powers to restrict mortgages...but not for now!

These are the powers hey said they had a year ago and would use....someone lying somewhere if you ask me.

More under hand ramping.

This baby has got to blow.

But then they'll claim construction workers will be out of work because of the lack of credit DEBT to buy houses. They don't understand the meaning of affordable. Politicians and economists act like car salesmen "how much can you afford a month"! That's all that matters to them.

Lower house prices/living costs and sensible levels of lending = those construction workers will have more stable jobs.

They so blew it with HTB. It is not so much the HTB mortgages that have been taken so far, but the whole sentiment and energy it gave to the 'market'. Greater access to DEBT = bidders!

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