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TheCountOfNowhere

It's time for Mr Carney to quit the Bank of England

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http://www.dailymail.co.uk/debate/article-3805029/PETER-OBORNE-s-time-Mr-Carney-quit-Bank-England.html

 

"This meant that right from the start there was a giant question mark about where Mark Carney's loyalty lay."
 

 

The knifes are out.


The bubble is burst.

 

The blame is being laid ....

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Reasonable article - highlights the likely political nature of the appointment and concern of having a Goldman Sachs stooge in the job. Not sure why it's important that a Brit does the job though?

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There's no way he'd quit his ego wouldn't allow it, in terms of arrogance and having an inflated opinion of himself he's right up there with Blair.

I think i despise him more than just about any other establishment figure i can think of... it's his louche demeanor that really gets my back up.

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UBS: London is the second-most overvalued property market in the world... after Vancouver.

Quote

London now has the second most over-valued property market in the world, beaten only by Vancouver in Canada, according to a new “Bubble index” compiled by Swiss bank UBS.

Two years of strong price growth, mostly fuelled by an influx of Chinese buyers, have pushed Vancouver above London, which was last year’s “top” city, as the place with the world’s most unsustainable house prices.

Economists at UBS compared prices in 18 cities against the economic backdrop in each country, and concluded that Stockholm, Sydney, Munich and Hong Kong are also in the midst of a property bubbles. UBS said the prices in each of the at-risk cities have increased by almost 50% on average since 2011.

All European cities are overvalued, according to the report, apart from Milan. Low-interest rate regimes across Europe have pushed prices in London, Stockholm, Munich and Zurich to record levels, after accounting for inflation.

UBS Wealth Management’s Claudio Saputelli, said prices in the bubble cities are out of proportion to the local economic conditions, and inflation rates.

“What these cities have in common are excessively low interest rates, which are not consistent with the robust performance of the real economy. When combined with rigid supply and sustained demand from China, this has produced an “ideal” setting for excesses in house prices.”

San Francisco, which has also seen real prices rise by more than 50% over the last five years, is heading into bubble territory – despite a boom in the local economy, he warned.

https://www.theguardian.com/business/2016/sep/27/london-second-most-over-valued-property-market-in-the-world-says-ubs

 

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I was really hoping Mrs May, or the new chancellor would take him, and the rest of the committee to task.

I Posted this on the useless BoE thread a few days ago.

 

"The knives are out for him, the dogs have embedded their teeth.

I hope they hold on and slay the beast."

 

Maybe, just maybe we will get our wish 

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Not just to be a wind-up merchant, but largely sincerely; things could be much worse.

With CPI at 0.6% and the uncertainty of Brexit on the horizon, I'm sure that if the Bank of England had wanted to put far more aggressive easing through, then they could have done so.

The two key parts of the Bank's mandate are financial stability and CPI. Financial stability is art not science and they can always say "We couldn't have anticipated that!" (as they've just done), hence they can always just forget about financial stability risks, or to put it another way they can pretend that they are trivial even if they think they may be grave. However,  CPI is a number which the Bank don't produce. The MPC could be chasing 2% a great deal harder than they are (and be sanguine about an overshoot)

Whilst saying so is just observing that they could be poking the stick further into my eye, it's still true...

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