Jump to content
House Price Crash Forum
Sign in to follow this  
spyguy

I hear no dogs barking

Recommended Posts

This post covers a number of posts - Carney, Bank regulation, leverage etc etc

' Despite the 2007-12 UK finance-cum-macro catastrophe and its ongoing aftermath, the size and role of finance remains all but absent from British political debate. '

http://ftalphaville.ft.com/2016/10/31/2178445/guest-post-dogs-not-barking/

The salient point is the UK finance is about 4 times bigger than the states, relative to the size of its economy.

There's lots of noise and chatter about IR and whether they should be higher. But nothing on the leverage in the UK finances.

Weirdly, Mervyn King comments (quietly) on this. Stuff like having the clawback and reducing leverage (and power) of the UK finance sector.

'In particular, it should now focus on driving up capital requirements and undoing the Bank of England’s dual promotional and regulatory mandates.

Such engagement will not suffice to prevent misfortune, as the US itself demonstrates. But we have tried the alternative. British dogs should be howling.'

Share this post


Link to post
Share on other sites
15 minutes ago, spyguy said:

This post covers a number of posts - Carney, Bank regulation, leverage etc etc

' Despite the 2007-12 UK finance-cum-macro catastrophe and its ongoing aftermath, the size and role of finance remains all but absent from British political debate. '

http://ftalphaville.ft.com/2016/10/31/2178445/guest-post-dogs-not-barking/

The salient point is the UK finance is about 4 times bigger than the states, relative to the size of its economy.

There's lots of noise and chatter about IR and whether they should be higher. But nothing on the leverage in the UK finances.

Weirdly, Mervyn King comments (quietly) on this. Stuff like having the clawback and reducing leverage (and power) of the UK finance sector.

'In particular, it should now focus on driving up capital requirements and undoing the Bank of England’s dual promotional and regulatory mandates.

Such engagement will not suffice to prevent misfortune, as the US itself demonstrates. But we have tried the alternative. British dogs should be howling.'

 

The British dogs are all too busy licking their own balls and saying how great they taste.

Share this post


Link to post
Share on other sites
7 hours ago, spyguy said:

This post covers a number of posts - Carney, Bank regulation, leverage etc etc

Cracking read. Thanks for flagging it. I buy all of it. Better is not good. Particularly like this line; “I cannot say if UK regulation is OK now unless you tell me if the goal is crisis 1 in a 100 or 1000 years”.

Share this post


Link to post
Share on other sites
7 minutes ago, Bland Unsight said:

Cracking read. Thanks for flagging it. I buy all of it. Better is not good. Particularly like this line; “I cannot say if UK regulation is OK now unless you tell me if the goal is crisis 1 in a 100 or 1000 years”.

We seem to be getting 1 in 13 years.

Share this post


Link to post
Share on other sites

Thing is, before 2007, I knew banks were leveraged. Id grossly underestimated by how much.

And thats a problem in the UK.

People always think that Wall Street wags the US dog. But the UK finance/banks are 4 times the the size of the state's, relative to GDP.

So, uniquely in the world, we have a grossly disproportionatly large finance sector that is leveraged beyond its/ our eyeballs.

Share this post


Link to post
Share on other sites
3 minutes ago, spyguy said:

We seem to be getting 1 in 13 years.

Andrew Gamble put out a book in 2014 called Crisis Without End? The Unravelling of Western Prosperity. One way to avoid intermittent crises is to mire yourself in perpetual crisis.

We need to think outside the box!

BTL portfolios all round!

(Oh - we're already doing that last bit... )

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:   32 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.