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crashmonitor

Cable -Don't Raise Rates -Telegraph Front Page

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He was always a bit of a jelly fish....didn't want the Chief Secretary to the Treasury job because he is a jam today man. Headlining the Telegraph front page.

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10910535/Vince-Cable-warns-Bank-of-England-against-raising-interest-rates.html

Edited by crashmonitor

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Rates are about to go up Vince...get out there and tell the voters you don't want them to go up.

The one group of people that should not ruin a country are politicians.

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The only justification for raising rates is that Carney believes the housing bubble is going nationwide and that Osborne cannot be inveigled into withdrawing HtB. Otherwise it simply makes no sense to tighten when you're borrowing 7% of GDP every year and subsidising the housing market directly.

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The only justification for raising rates is that Carney believes the housing bubble

I think that's his justification for keeping rates at "fec all" %

They want high prices...the government and their banker friends profit from it.

Doh!

Edited by TheCountOfNowhere

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Seems to me that this 'edict' from Cable rather undermines Carney's tough talk, I don't think Carney was ever really considered walking the walk and departing from zirp anytime soon.

And to a large extent Carney had dampened house price expectations down, after a frenetic Spring we appeared to hit the buffers in June, though obviously tougher lending criteria was also a factor.

But Cable seems to be wanting to spread a different message, interest rates won't rise go fill your boots with property.

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Seems to me that this 'edict' from Cable rather undermines Carney's tough talk, I don't think Carney was ever really considered walking the walk and departing from zirp anytime soon.

And to a large extent Carney had dampened house price expectations down, after a frenetic Spring we appeared to hit the buffers in June, though obviously tougher lending criteria was also a factor.

But Cable seems to be wanting to spread a different message, interest rates won't rise go fill your boots with property.

Every single ******ing one of them is torn between what they know is "right", and what will keep them in a job. For now.

The exercise now is to get their caveats in early, to avoid blame when this all comes down.

Vince is the king of them all in this regard. None better.

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It would be unusual for the UK base rate to move in advance of any US rate move and when US rates do move what "Vince Cable Says" will be irrelevant.

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The only justification for raising rates is that Carney believes the housing bubble is going nationwide and that Osborne cannot be inveigled into withdrawing HtB. Otherwise it simply makes no sense to tighten when you're borrowing 7% of GDP every year and subsidising the housing market directly.

Ridiculous isn't it?

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The only justification for raising rates is that Carney believes the housing bubble is going nationwide and that Osborne cannot be inveigled into withdrawing HtB. Otherwise it simply makes no sense to tighten when you're borrowing 7% of GDP every year and subsidising the housing market directly.

Well I think part of it is perception of return to normal.Imo the reality is different. I do not know what is happening to inflation expectations. Maybe they are running away from the cpi trend. Oh and also expectations feeding through into higher wage settlements.

Edited by Ash4781

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The only justification for raising rates is that Carney believes the housing bubble is going nationwide and that Osborne cannot be inveigled into withdrawing HtB. Otherwise it simply makes no sense to tighten when you're borrowing 7% of GDP every year and subsidising the housing market directly.

Its not about 'justifications'...if it was they'd have raised in 2011 when rates were 0.5% and inflation touching 6%, above even its 2008 peak.

Its about doing what the yanks do. The taper is progressing, and according to denninger they'll keep doing this because pension funds will blow up or something if they dont.

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