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Mark Carney - Troubling Bubble In The Uk's Property Market

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http://www.bbc.com/news/business-34788970

So I asked the governor of the Bank of England, in an interview you can watch here, whether this openness is a one-off or what he hopes will be a cultural revolution.

As for when and how markets will become our faithful, useful servants, rather than our wealth-destroying masters, Mark Carney conceded there is a troubling bubble in the UK's property market, which the Bank is monitoring lest it become worryingly pumped up.

And he did not demur when I pointed out that this bubble is partly the result of the Bank's and other central banks' evasive actions after the 2008 financial crisis, the slashing of interest rates to almost zero and the creation of billions of dollars and pounds of new money through quantitative easing.

So hope for our confidence in financial markets when official cure is as dangerous - well almost - as disease?

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Stands in an empty stable with a gaping open door, and proclaims a risk of the horse leaving

Edited by Si1

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There's a couple of interesting articles by Phillip Aldrick in yesterdays Times (pages 44 & 45), the titles of his 2 property market pieces even include the phrases 'Ponzi scheme' and 'housing crash'

He's not really stating anything other than the perfectly bleeding obvious but still interesting to see it in the MSM

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Mark Carney conceded there is a troubling bubble in the UK's property market, which the Bank is monitoring lest it become worryingly pumped up.

Well thanks heaven for that, good to know they've got our backs.

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Stands in an empty stable with a gaping open door, and proclaims a risk of the horse leaving

Yup!! Couldn't have put it better myself....! :P

And that horse left about FIFTEEN F***ING YEARS AGO..... :unsure::rolleyes:

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Mark Carney conceded there is a troubling bubble in the UK's property market, which the Bank is monitoring lest it become worryingly pumped up.

Then if it becomes "worryingly pumped up" he'll be monitoring it lest it becomes too worringly pumped up.

What a waste of money.

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Hs mates in the Fed have said told him that IR rises are coming?

Not sure what your thoughts are on him but Martin Armstrong thinks that when interest rates rise in the USA they will rise quickly and he thinks the insurance and pension industries will collapse if they don't;

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Not sure what your thoughts are on him but Martin Armstrong thinks that when interest rates rise in the USA they will rise quickly and he thinks the insurance and pension industries will collapse if they don't;

"The public is not as stupid as the press and the government think"...I would say they are stupider...discuss... :lol:

The Roman empire comments make we want to read up a bit on that period, especially what happened to currency at the time, but the rest has been said on here for years. Problem is, they are not going to be compelled to raise rates any time soon, todays share movements give the beginnings of the next excuse for when it is time to raise next?

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Not sure what your thoughts are on him but Martin Armstrong thinks that when interest rates rise in the USA they will rise quickly and he thinks the insurance and pension industries will collapse if they don't;

now under what circumstances WILL interest rates be able to rise rapidly.

I think i have already mentioned...it is geopolitical.to do with middle east.

1)america wants high oil price,but to import less from ME,so has a bit of a war to reduce opec supply

2)russia ALSO wants high oil price,and to disrupt market share from OPEC, but also wants US to look bad in international diplomacy.

3)russia provides enough 2nd rate firepower to allied ME countries to fight proxy war and to corner US into using some very nasty weapons.

4)US wins militarily,but the international outrage over use of said weapons turns a lot of the world toward russia for energy demands and politically

5)russia,and new international allies then introduce trade blockade/sanctions against US..causing chronic problems in US that can now only trade with itself and a small number of allies like UK and canada...france and germany gravitate toward russia...while not completely enforcing a trade blockade,they do put severe tarriffs on US imports to their respective countries.....and blowing apart NATO

US responds by recalling all military hardware from france and germany,with a stark warning that if they get expansionist against other foreign enemies, they will NOT be providing any support whatsoever, they can get beaten to crap and starve...not our problem.

trade embargo causes US to go into hyperinflation as the currency goes zimbabwe.

any imports they can get are ridiculously priced....like $15 for a starbucks coffee in a matter of weeks from just being $5.

for a short period of time, the global oil price skyrockes from $50USD to $500+ USD( Euro has appreciated to €4:USD and is now the global reserve currency..with the russian rouble making a comeback).

russia uses the opportunity to re-annexe several eastern european state+greece+cyprus by sending rapid reaction military.

Europe now very concerned, but do a diplomatic deal with russia to save their @rses.

6 months later and uncle sam unveils all that free energy gubbins that they have been hiding under the counter,and says to the world..stuff you, didn't need that crap anyway,and goes totally independent for everything.

only allied countries during the fiasco have access to the new technologies.

taken from the book of daniel in the bible.

can't take all the credit for that scenario

lion with eagles wings=anglo america..which will be run from london,ontario after the merger(remnant of usa,uk,canada and ireland)

bear with 3 ribs= russia+ newly (rather aggressively)aqcuired satellite states

leopard+fowl= franco german northern europe alliance= will consolidate and reform into 4 governships with central europe under their dominion...this is also where the fun starts....our present royal family are franco-german,and it is THEY who will be heading up the new northern europe.....they are going to be kicked out of britain,primarily for the treasonous treaties without our consent,and we will be annexed by canada(by somebody originally scots-irish--not IRA papist,but someone who can TRULY bring peace from both sides of the border due to his heritage,with a rather older claim to the throne than them..so that will shut up the SNP)

it's actually nothing to fear,with the benefit of hindsight it will actually be rather positive

and then there is everybody else...who will comprise UN 2.0 with a bit more teeth.

Edited by oracle

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There is an increase in the proportion of reported cash property purchases and the mortgage approvals for house purchase are still relatively low. The worry in this market maybe there isn't much mortgage business to go round. If lending standards are holding up I imagine we"ll see continued rate cuts to fight for what business there is.

Edited by Ash4781

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There is an increase in the proportion of reported cash property purchases and the mortgage approvals for house purchase are still relatively low. The worry in this market maybe there isn't much mortgage business to go round. If lending standards are holding up I imagine we"ll see continued rate cuts to fight for what business there is.

Would you care to make a distinction between central bank rates, bond market rates, mortgage rates, and also include macro prudential boe regulation and the incoming Basel rules as influences?

It's just you sound like an ea.

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Isn't this talk of IR hikes for the benefit of the bond market? Are they not trying to elicit a moderate sell-off in an attempt to boost the stock market?

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Isn't this talk of IR hikes for the benefit of the bond market? Are they not trying to elicit a moderate sell-off in an attempt to boost the stock market?

It's more a reflection of what the US Treasury is doing now that the debt ceiling issue has been furloughed i.e. the settlement of huge new cash management bills and 4 week bills to rebuild its cash position. Plus, there's a pile of new debt issues about to come up for auction. By law, UST sales and CMBs are settled via the primary dealing banks. If these issues are large or close together (like now) then the primary dealers may be forced to sell stocks and/or bonds to cover their obligations sucking money out of the markets.

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Why in interviews is he never asked what makes him better at spotting asset bubbles that King?

Whatever changes they have made since the CC they are still pursuing similar policies of following the market.

Wonder how well talking is going to work once the Fed lift rates.

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