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TheCountOfNowhere

"banks Must Burst Housing Bubble"

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http://www.bbc.co.uk/news/blogs-the-papers-27303764

Strangely, posted on the BBC news page.

The housing market revival is dead now.

No one in their right mind will buy now.

Doesn't the OECD mean, force the government to give larger deposits to purchasers? What would be the point of putting up the deposits which currently the Government are either offering or standing surety for ?

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http://www.bbc.co.uk/news/blogs-the-papers-27303764

Strangely, posted on the BBC news page.

The housing market revival is dead now.

No one in their right mind will buy now.

I like this too http://www.theguardian.com/business/2014/may/06/bank-of-england-housing-property-bubble-nuclear

Bank may yet need to go nuclear to burst the housing bubbleplanned response to a property "bubble" as based on the "defcon" approach used by the US military to prepare for nuclear conflict. We moved on from defcon 5 when the Bank first expressed concerns and will move to defcon 3 if and when it imposes restrictions on lending, he says. The "nuclear option" would be pushing up the cost of borrowing...

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Knowledge that innocent people will be hurt means policymakers are reluctant to go to defcon 1. But ultimately, they will need to be prepared to press the button and push up the cost of borrowing.

Saying it would be "defcon1" if they push up the costs of borrowing to average levels reflects so badly on the state of the UK economy.

It must mean that the UK were at least at defcon1 from WW2 until the latest most severe economic collapse when interest rates were much higher than now - and for that matter way back beyond WW2. Interest rates weren't called defcon this that and the other when they went to the 15 - 17% range in the 80s/90s.

Innocent people just had to put up with the deffing con.

They had no defcon choice.

Edited by billybong

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I like this too http://www.theguardian.com/business/2014/may/06/bank-of-england-housing-property-bubble-nuclear

Bank may yet need to go nuclear to burst the housing bubble planned response to a property "bubble" as based on the "defcon" approach used by the US military to prepare for nuclear conflict. We moved on from defcon 5 when the Bank first expressed concerns and will move to defcon 3 if and when it imposes restrictions on lending, he says. The "nuclear option" would be pushing up the cost of borrowing...

All this says to me is "rigged market". They are rigging the market on the way up by proving liquidity to some and they are fixing it on the way down by removing such liquidity.

The whole thing is just wrong and it's best to keep out of it until the 2nd collapse and the banks are re-regulated.

Edited by TheCountOfNowhere

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I like this too http://www.theguardian.com/business/2014/may/06/bank-of-england-housing-property-bubble-nuclear

Bank may yet need to go nuclear to burst the housing bubble planned response to a property "bubble" as based on the "defcon" approach used by the US military to prepare for nuclear conflict. We moved on from defcon 5 when the Bank first expressed concerns and will move to defcon 3 if and when it imposes restrictions on lending, he says. The "nuclear option" would be pushing up the cost of borrowing...

So actually doing their job is now considered the nuclear option?

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Doesn't the OECD mean, force the government to give larger deposits to purchasers? What would be the point of putting up the deposits which currently the Government are either offering or standing surety for ?

I think they mean that HTB should be scrapped- but to do this now would send a strong signal that the bubble has in fact already burst.

Maybe they could attempt to regionalise it, so only people in the north could get a state funded deposit- but that would not play at all well with the Tories southern support base, especially since it's the deposits on southern properties that are the problem.

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