In a worrying turn of events Carney says everything will be fine

[TheCountOfNowhere]

Be Afraid....Carnet says everything will be fine ( I read as, bankers to be allowed to do what the f8*k they like ).

 

Bank of England governor Mark Carney has acknowledged that the UK's divorce from the EU may yet proceed smoothly - and that it would mean a higher path for interest rates.

http://news.sky.com/story/carney-eyes-smooth-brexit-scenario-that-could-mean-higher-growth-and-interest-rates-10776321

 

Anyone know what a higher path for interest rates is, apart from goobly-de-gook/double speak/Bull***t ?

[billybong]

^

Quote

Mr Haldane acknowledged there were "some similarities" between economics and meteorology.

 

?

A woman ringing the bbc can forecast far better than the so called experts?

 

 

[b_real]

My favourite from today:

 

[rollover]

Give us credit for avoiding post-Brexit vote financial crisis says Bank of England Governor Mark Carney

Independent

 

[TheCountOfNowhere]

"We probably won't forecast the next crisis"

 

No. but they certainly have caused it !!!!

[TheCountOfNowhere]

 

 

These people are either liars, criminals, geniuses or deluded beyond all comprehension.

[zugzwang]

28 minutes ago, TheCountOfNowhere said:

"We probably won't forecast the next crisis"

 

No. but they certainly have caused it !!!!

Next crisis? They still haven't resolved the the current crisis!

[interestrateripoff]

More genius. May, could ambiguous meaningless statements.

[Wayward]

I think I will look through this forward guidance of an unpredictable higher path.

[billybong]

"We probably won't forecast the next crisis"

___

and even if they did know they wouldn't say.

[winkie]

 

[the_duke_of_hazzard]

6 hours ago, TheCountOfNowhere said:

Anyone know what a higher path for interest rates is, apart from goobly-de-gook/double speak/Bull***t ?

When the Fed tell me to.

[DarkHorseWaits-NoMore]

 

[zugzwang]

6 hours ago, TheCountOfNowhere said:

Anyone know what a higher path for interest rates is, apart from goobly-de-gook/double speak/Bull***t ?

There isn't one.

Looked at from an 18 year perspective, the secular trend in UK interest rates has been down since the year 2000 but for a brief blip circa 2004-6 when Mervo the Clown scrambled desperately to cool the insane lending bubble he and Brown had helped engineer.

If the UK ponzi economy couldn't sustain ~3% interest rates in 2003, what makes you think it would be possible today?

 

[AvoidDebt]

The Bank of England's quantitative easing (QE) programme is not to blame for Britain's housing crisis, its chief economist has said, pointing the finger instead at a lack of housebuilding.

Andy Haldane pushed back at MPs who suggested the £435 billion Government bond buying programme was feeding into a national housing bubble and increasing inequality by disproportionately benefiting homeowners.

He admitted that QE has effectively increased asset prices, but said limited housing stock has been the main driver of unaffordable home prices. 

http://money.aol.co.uk/2017/02/21/qe-programme-not-to-blame-for-housing-crisis-banks-chief-econo/

 

Just feel like giving up. Still seeing new stuff coming on at 2016 fantasy prices + more, more, more.  Can't see them fixing this, totally deluded. It's probably impossible for them to even contemplate raising rates, the debt levels are so huge. 

[TheCountOfNowhere]

27 minutes ago, AvoidDebt said:

The Bank of England's quantitative easing (QE) programme is not to blame for Britain's housing crisis, its chief economist has said, pointing the finger instead at a lack of housebuilding.

Andy Haldane pushed back at MPs who suggested the £435 billion Government bond buying programme was feeding into a national housing bubble and increasing inequality by disproportionately benefiting homeowners.

He admitted that QE has effectively increased asset prices, but said limited housing stock has been the main driver of unaffordable home prices. 

http://money.aol.co.uk/2017/02/21/qe-programme-not-to-blame-for-housing-crisis-banks-chief-econo/

 

Just feel like giving up. Still seeing new stuff coming on at 2016 fantasy prices + more, more, more.  Can't see them fixing this, totally deluded. It's probably impossible for them to even contemplate raising rates, the debt levels are so huge. 

IMHO, they are just outright lying now.

if they'd not done FLS there would be not mental prices right now.

BTLers have filled their boots with QE cash and now expect the next generation to pay for their debts.

f**k that, leave.

 

 

[billybong]

18 minutes ago, TheCountOfNowhere said:

IMHO, they are just outright lying now.

if they'd not done FLS there would be not mental prices right now.

BTLers have filled their boots with QE cash and now expect the next generation to pay for their debts.

f**k that, leave.

 

 

+1

Indeed and it's even more blatantly contradicting what organisationS like their own BIS have said on the subject.

The BIS being the organisation with the main central bankers as directors, including Carney.

So in effect Haldane is using the swindle news outlets and fake news outlets to propagate a fake line to try to persuade the more easily persuadable.  That's along with the Treasury Select Committees allowing BoE news and opinion platforming. 

Those dodgy news outlets just going along with it all of course.

.

 

Quote

Q: Did the BoE feed the housing bubble

Haldane: Ok... this depends on how you cut the cake but QE has benefited everybody.

"Everybody" 

Edited February 22, 2017 by billybong

[Mrs Bear]

I'm not seeing much sign of reductions in the outer areas I watch - what I am seeing is an awful lot of properties sitting there and not selling. 

Some neighbours are divorcing and their house was on the market for ages with virtually no interest, still less offers.  The bloke is an EA, and the Mrs told me some time ago that the market was absolutely dead, nothing shifting. 

When I suggested that prices had simply become unaffordable for too many, she agreed absolutely.  But she added that they could not afford to reduce the price by more than a token amount - same old story. 

I would imagine that a lot of people are hoping for the fabled 'spring bounce' but I'd be very surprised if it's more than a feeble little wriggle this year, if that.  

[AvoidDebt]

16 minutes ago, Mrs Bear said:

I'm not seeing much sign of reductions in the outer areas I watch - what I am seeing is an awful lot of properties sitting there and not selling. 

I think that's the main difference between now and last few years. Huge pain on the seller side too. The days of pulling any figure out of your rear and securing a sale are long gone.. 

[onlyme2]

The dishonest money louts at the bankrupt of england have been at it since 2001. Meddling in markets generally, skewing investment decisions, wrecking lives and distorting the economy, and starving people of the resources required to start up their own businesses as they divert it all to put a roof over their head.

Great article from Management Today .

The only time you get any honesty out of bankrupt of england employees is when they have left. 

http://www.managementtoday.co.uk/uk-housing-crisis-disaster-own-making/future-business/article/1380301

All the money tied up in property doesn’t do anything productive, a house doesn’t produce anything,’ says Paul Stanworth, MD of L&G Capital, the direct investment arm of the life insurance giant. Formed in 2013, part of its remit is funding and managing build-to-rent housing projects, with the aim of creating long-term revenue streams for its pensioner customers. ‘The challenge we face in this country is that people think their house is part of how they create their wealth. In Germany they do it by investing in businesses, here we put all our money into an unproductive asset and hope the price goes up – that’s a problem. If people got their returns from savings which were invested in industry instead, that would be a good thing,’ he says.
 

.....

‘What’s happening is that prices are being massively stoked. A whole series of measures have come in that have bid prices up in relation to income. It’s QE, it’s Funding for Lending, it’s Help to Buy one, two and three, it’s discounted houses,’ says Erik Britton, co-director of Fathom Consulting and ex-Bank of England macroeconomist.  ‘This country has never seen even as much as a quarter of the stimulus for the housing market as there is in place now. It’s all been done quite deliberately by the government and the central bank.’
....

The national obsession with home ownership has damaging consequences for the wider economy: for every pound lent to a manufacturing business in the UK, some £35 is lent to someone buying a house. With capital allocation skewed that badly, no wonder there is a productivity crisis.
 

Edited February 22, 2017 by onlyme2

[Maynardgravy]

'Thief lies in front of beak' shocker.

[Venger]

25 minutes ago, Mrs Bear said:

I'm not seeing much sign of reductions in the outer areas I watch - what I am seeing is an awful lot of properties sitting there and not selling. 

Some neighbours are divorcing and their house was on the market for ages with virtually no interest, still less offers.  The bloke is an EA, and the Mrs told me some time ago that the market was absolutely dead, nothing shifting. 

When I suggested that prices had simply become unaffordable for too many, she agreed absolutely.  But she added that they could not afford to reduce the price by more than a token amount - same old story. 

I would imagine that a lot of people are hoping for the fabled 'spring bounce' but I'd be very surprised if it's more than a feeble little wriggle this year, if that.  

Do they have a nice car? 

Overall inventory on market is still historically low, but ticking up.   So I guess 'awful lot' is just a pocket of more houses on the market.  A tickup from very low-levels of recent times.

All it requires is for some owners who can, or must reduce the price.   All other owners are hostage to downward valuation in homes, if a few neighbouring properties begin transact at substantially less than peak prices.   Values can disappear instantly.   Poof!  Into nothing.   Houses valued at £1m at peak, don't remain valued at £1m, if and when you have a few sellers who begin accepting £750K in order to sell.   It brings down the value of the surrouding similar houses.  What more evidence does the market need to establish values, than what those houses are selling at!   

Same old story?  How long have they lived there I wonder.   How much have values zoomed upwards in that time.  At these peaky prices, more often than not, it will be that they don't want to reduce price, rather than they can't.  Maybe each has the view they need a certain level of HPI mad-gainz from sale, so they each buy themselves as house with the sale proceeds (divorce).    Although they are just owners of one house, holding out for 'what it is worth'.  Others can be inheritors, property-investors, or just regular owners who decide to accept less, perhaps concerned that prices are set to fall even further ahead. 

Yet there has been intense intervention-galore for years, encouraged by the 'they don't know what they're doing' defence of owners from renters (and owners themselves), with policy to override market dynamics, so will have to wait and see - but am still going to hold to markets being more powerful that Governments and limits to what Governments can do (or even want to do, once they have cashed out mad-gainz themselves perhaps, into 'required policy reflation'.)

Quote

Luckyone:  My expectation is that this market segment will behave in the same fashion as any other market which has topped out. Supply will increase, volume will decrease for quite a while before prices begin to crumble.

Many of us think that the entire market pricing structure is driven by the high priced segment, as all other properties are priced based on compromises versus the ideal (location, size, commuting etc). When the top end crumbles, everything else will follow.

 

More Haldane.   Really annoying stuff.   The forum began 2004-05.   Other people knew things very very wrong, against the bliss of the experts on the win-side.  Then policy and QE galore to bail the win side out, and prevent correction.   Great a few pennies up -vs- HPI protection and BTL double-downs. 

http://www.bbc.co.uk/news/business-39039315

[billybong]

^

Quote

..here we put all our money into an unproductive asset and hope the price goes up – that’s a problem. If people got their returns from savings which were invested in industry instead, that would be a good thing,’ he says.

Here the banks actively pursue policies to undermine UK industry instead.  They don't like the competition. 

It's very much a reverse image of the £billions/trillions of props and support given to pump up the UK housing/house price market.

Edited February 22, 2017 by billybong

[TheCountOfNowhere]

14 minutes ago, Venger said:

 

More Haldane.   Really annoying stuff.   The forum began 2004-05.   Other people knew things very very wrong, against the bliss of the experts on the win-side.  Then policy and QE galore to bail the win side out, and prevent correction.   Great a few pennies up -vs- HPI protection and BTL double-downs. 

http://www.bbc.co.uk/news/business-39039315

 

Bliss ?

Criminality if you ask me.

 

 

[Si1]

1 hour ago, TheCountOfNowhere said:

IMHO, they are just outright lying now.

if they'd not done FLS there would be not mental prices right now.

BTLers have filled their boots with QE cash and now expect the next generation to pay for their debts.

f**k that, leave.

 

 

Haldane just propogates the boe corporate bias. It's how he got his senior job in the first place. Sadly.