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Fed's Kohn Says He Will Show No Mercy On House Prices

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http://freeserve.advfn.com/news_Fed-s-Kohn...s_14631222.html

Fed's Kohn says Fed won't act to preserve high home prices

WASHINGTON (AFX) -
The Federal Reserve has no intention of preserving all of
the recent gains in home price values
, said Federal Reserve board governor
Donald Kohn on Thursday. "If real estate prices begin to erode, homeowners
should not expect to see all the gains of recent years preserved by monetary
policy actions,' Kohn said in a speech prepared for delivery to a European
Central Bank forum in Frankfurt, Germany.
In his remarks, Kohn attacked the
popular 'Greenspan put' theory that Fed policy would always protect investors
from sharp asset market drops while doing nothing to restrain these markets when
prices.
"This argument strikes me as a misreading of history," Kohn said.
"Conventional policy as practiced by the Federal Reserve has not insulated
investors from downside risk," he said.

This is a blatant downside risk warning to bubble markets. The UK's Bubble is far bigger than the overall US market. HPI is perhaps being seen as a disease that needs some IR medicine.

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Guest Bart of Darkness
"If real estate prices begin to erode, homeowners

should not expect to see all the gains of recent years preserved by monetary

policy actions,

Of course this won't happen here because.... because.... well Uncle Gordon just won't allow it.

I can see him standing at the borders of the UK, like He-Man on acid, fighting off the baleful world economic forces trying to break through into our happy land, shouting in a voice of righteous fury "You SHALL not pass!"

Sorted!

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For those following the US market here is the latest from the Fed on the overall view of HPI accross all 12 Fed reporting regions:

http://www.signonsandiego.com/news/busines...fedoutlook.html

SAN FRANCISCO: Retail sales grew and tourism activity was vigorous. Manufacturers reported generally solid demand. Residential real-estate activity generally remained at high levels but slowed in some areas.
Signs of significant cooling were reported in some previously hot markets
in Hawaii, Arizona and California. Commercial real-estate activity improved.

There are 11 other regions reporting. All, but one (Dallas) report slowing house markets.

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Of course this won't happen here because.... because.... well Uncle Gordon just won't allow it.

I can see him standing at the borders of the UK, like He-Man on acid, fighting off the baleful world economic forces trying to break through into our happy land, shouting in a voice of righteous fury "You SHALL not pass!"

Sorted!

Pure Class :lol::lol::lol:

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http://freeserve.advfn.com/news_Fed-s-Kohn...s_14631222.html

Fed's Kohn says Fed won't act to preserve high home prices

WASHINGTON (AFX) -
The Federal Reserve has no intention of preserving all of
the recent gains in home price values
, said Federal Reserve board governor
Donald Kohn on Thursday. "If real estate prices begin to erode, homeowners
should not expect to see all the gains of recent years preserved by monetary
policy actions,' Kohn said in a speech prepared for delivery to a European
Central Bank forum in Frankfurt, Germany.
In his remarks, Kohn attacked the
popular 'Greenspan put' theory that Fed policy would always protect investors
from sharp asset market drops while doing nothing to restrain these markets when
prices.
"This argument strikes me as a misreading of history," Kohn said.
"Conventional policy as practiced by the Federal Reserve has not insulated
investors from downside risk," he said.

This is a blatant downside risk warning to bubble markets. The UK's Bubble is far bigger than the overall US market. HPI is perhaps being seen as a disease that needs some IR medicine.

Didn't something like this happen in 1929? ;)

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A Saudi prinz is trying his luck to bend the Saudi Stockmarket that is crashing real bad atm too.

He is going to invest £1.6 billion pounds to prop it up... sounds kinda familiar, no?

Source is here: http://news.independent.co.uk/business/new...ticle351595.ece

Sometimes it works, sometimes it doesn't. George Soros got famously fried when he tried to crash the Australian dollar (sometime back in the 80s I think). Sadly :D he dumped his shares the very same day that the National Australia Bank decided to do a huge injection into Aussie shares.

NAB 1

GS 0

If our Saudi Prince succeeds he will make a motza.

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Sometimes it works, sometimes it doesn't. George Soros got famously fried when he tried to crash the Australian dollar (sometime back in the 80s I think). Sadly :D he dumped his shares the very same day that the National Australia Bank decided to do a huge injection into Aussie shares.

NAB 1

GS 0

If our Saudi Prince succeeds he will make a motza.

Is that a type of Pizza?

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http://freeserve.advfn.com/news_Fed-s-Kohn...s_14631222.html

Fed's Kohn says Fed won't act to preserve high home prices

WASHINGTON (AFX) -
The Federal Reserve has no intention of preserving all of
the recent gains in home price values
, said Federal Reserve board governor
Donald Kohn on Thursday. "If real estate prices begin to erode, homeowners
should not expect to see all the gains of recent years preserved by monetary
policy actions,' Kohn said in a speech prepared for delivery to a European
Central Bank forum in Frankfurt, Germany.
In his remarks, Kohn attacked the
popular 'Greenspan put' theory that Fed policy would always protect investors
from sharp asset market drops while doing nothing to restrain these markets when
prices.
"This argument strikes me as a misreading of history," Kohn said.
"Conventional policy as practiced by the Federal Reserve has not insulated
investors from downside risk," he said.

This is a blatant downside risk warning to bubble markets. The UK's Bubble is far bigger than the overall US market. HPI is perhaps being seen as a disease that needs some IR medicine.

Why isn't the Bank of England doing this?

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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