Jump to content
House Price Crash Forum
Sign in to follow this  
The Spaniard

Lord Adair Turner Talks About Debt Etc..

Recommended Posts

A "think tank" whose thinking is so far behind events that it's pointless.

I wonder how much money Adair is now paid to 'think' about the debt problem which blew up during his time at the top of the financial services regulatory body, the FSA?

If the financial services regulatory body could not cap lending multiples, LTV, ban self cert, regulate IO mortgages etc, then just WTF were they doing?

Edited by Reck B

Share this post


Link to post
Share on other sites

A "think tank" whose thinking is so far behind events that it's pointless.

I wonder how much money Adair is now paid to 'think' about the debt problem which blew up during his time at the top of the financial services regulatory body, the FSA?

If the financial services regulatory body could not cap lending multiples, LTV, ban self cert, regulate IO mortgages etc, then just WTF were they doing?

Following the dictates of an economic model that tells them debt and money don't matter as the various components of the economy are always at or near a perfect equilibrium until disturbed by an exogenous shock which is impossible to predict.

Share this post


Link to post
Share on other sites

Good video. The one thing that was said which I didn't agree with was the idea of people moving from variable rate mortgages to fixed. That only works if the banks offer a loss making deal. Moving to a fixed rate is like taking out insurance and on the whole costs more than not taking out insurance. So unless the government is prepared to stand behind some deal the idea is a dead duck.

Share this post


Link to post
Share on other sites

BTW I went to a positive money meeting in Cheltenham on monday. It was good to meet people that were switched on to what is going on and could talk about people like Thomas Piketty and they Knew what you were talking about. The 3 hour meeting seemed to last about 10 minutes. Time flew.

Share this post


Link to post
Share on other sites

A "think tank" whose thinking is so far behind events that it's pointless.

I wonder how much money Adair is now paid to 'think' about the debt problem which blew up during his time at the top of the financial services regulatory body, the FSA?

If the financial services regulatory body could not cap lending multiples, LTV, ban self cert, regulate IO mortgages etc, then just WTF were they doing?

Arranging new channels for change.

Share this post


Link to post
Share on other sites

A "think tank" whose thinking is so far behind events that it's pointless.

I wonder how much money Adair is now paid to 'think' about the debt problem which blew up during his time at the top of the financial services regulatory body, the FSA?

If the financial services regulatory body could not cap lending multiples, LTV, ban self cert, regulate IO mortgages etc, then just WTF were they doing?

Making sure that when the reckless lending they had had turned a blind eye to went wrong, that taxpayers were there to bail the banks out.

Look at the people trail....

Hector Sants FSA to Barclays (Since left there...)

http://www.insuranceage.co.uk/insurance-age/news/2231518/barclays-appoints-fsas-sants-as-compliance-chief

FSA top legal brain to Lloyds

http://www.thelawyer.com/lloyds-hires-fsas-whittaker-as-new-group-general-counsel/1016036.article

etc

Share this post


Link to post
Share on other sites

A "think tank" whose thinking is so far behind events that it's pointless.

I wonder how much money Adair is now paid to 'think' about the debt problem which blew up during his time at the top of the financial services regulatory body, the FSA?

If the financial services regulatory body could not cap lending multiples, LTV, ban self cert, regulate IO mortgages etc, then just WTF were they doing?

Did you maybe not notice that Turner wasn't head of the FSA when the credit bubble was created?

I don't really understand the ire directed at him from people on this website. He's one of the few people arguing that uncontrolled credit growth directed toward housing is fundamentally dangerous, and has called for restricting it much more tightly. He's very publicly pointed out that the way asset prices are treated in economic models is fundamentally wrong and needs to change.

There's a reason George Osborne didn't make him the head of the Bank of England.

Share this post


Link to post
Share on other sites

Did you maybe not notice that Turner wasn't head of the FSA when the credit bubble was created?

I don't really understand the ire directed at him from people on this website. He's one of the few people arguing that uncontrolled credit growth directed toward housing is fundamentally dangerous, and has called for restricting it much more tightly. He's very publicly pointed out that the way asset prices are treated in economic models is fundamentally wrong and needs to change.

There's a reason George Osborne didn't make him the head of the Bank of England.

I wonder why....From 2000-06 he was Vice-Chairman of Merrill Lynch Europe.[4]

Share this post


Link to post
Share on other sites

Did you maybe not notice that Turner wasn't head of the FSA when the credit bubble was created?

I don't really understand the ire directed at him from people on this website. He's one of the few people arguing that uncontrolled credit growth directed toward housing is fundamentally dangerous, and has called for restricting it much more tightly. He's very publicly pointed out that the way asset prices are treated in economic models is fundamentally wrong and needs to change.

There's a reason George Osborne didn't make him the head of the Bank of England.

Turner does seem to 'get it' more than most in the establishment and deserves credit for being willing to alter his views- how many others involved even now have had the decency to admit they were wrong? Not many.

But at heart he is still a cheerleader for the current setup, albeit in a new improved version. So he does add value but won't be storming the barricades any time soon.

Sooner or later the ability of private banks to manufacture credit at will almost without oversight or constraint will have to be challenged- but Turner is not the man to do that.

Share this post


Link to post
Share on other sites

Turner does seem to 'get it' more than most in the establishment and deserves credit for being willing to alter his views- how many others involved even now have had the decency to admit they were wrong? Not many.

But at heart he is still a cheerleader for the current setup, albeit in a new improved version. So he does add value but won't be storming the barricades any time soon.

Sooner or later the ability of private banks to manufacture credit at will almost without oversight or constraint will have to be challenged- but Turner is not the man to do that.

I agree that he does seem to get it and the numerous speeches he has made show someone who has a sophisticated understanding of the financial system who clearly feels it needs change.

The fact that he gets the blame on this site for missing the crisis as chairman of the FSA, a post he took after the financial crisis had started, says a lot about posters on this site. As for being vice chairman of Merrill Lynch Europe, that was a total non-job.

Share this post


Link to post
Share on other sites

My biggest criticism is not his former role nor his lazy laconic commentary style (much like those mere observers at the BoE), it is his advocacy of a debt jubilee....the leveraged rich would love that and get to keep their ill gotten credit driven accretion of assets.

+1 - that's what scared me when he was being touted as a candidate for the governor of the BoE.

Share this post


Link to post
Share on other sites

My biggest criticism is not his former role nor his lazy laconic commentary style (much like those mere observers at the BoE), it is his advocacy of a debt jubilee....the leveraged rich would love that and get to keep their ill gotten credit driven accretion of assets.

I don't really agree. The Wilson's would be the sort of people you are talking about.

But if for every £ of debt there is a £ of credit and all the rich are highly levered with massive debt. I can only conclude it must be the poor that have got all the money.

Share this post


Link to post
Share on other sites

I agree that he does seem to get it and the numerous speeches he has made show someone who has a sophisticated understanding of the financial system who clearly feels it needs change.

The fact that he gets the blame on this site for missing the crisis as chairman of the FSA, a post he took after the financial crisis had started, says a lot about posters on this site. As for being vice chairman of Merrill Lynch Europe, that was a total non-job.

7 years in a non job, then into the FSA....sounds marvelous.

The issue with these types is that in order to get on, they need to stand out among their peers channels, and the way to stand out in a system of channels is to first, be a strong follower of the channel methods, and then later, to offer an idea that doesnt do away with the channel and its advocacy, but to offer some extra methods to the channel that appear to be fixing the direction of the channel.

Adair is doing that advocacy to change the channel ( the direction of the banking method) having been a major part of the collapse caused by the channel up to 2008.

Share this post


Link to post
Share on other sites

Logic does not imply that at all. They have the money as well.

Perhaps you could expand on what you are saying here.

I have debt and savings. £5,000 on a 0% credit card £60,000 on a mortgage at 0.67%. I earn more on my savings than my debt.

So are you saying I am typical of the rich. Would the rich borrow a million at 5% while they have a million sat in the bank earning 2%

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:   215 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.