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Realistbear

Bernanke Admits What Gordon Dare Not Admit

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http://abcnews.go.com/Business/wireStory?i...TC-RSSFeeds0312

WASHINGTON May 18, 2006 (AP)— The housing market, after flying high for five years, has lost altitude and appears headed for a safe landing, Federal Reserve Chairman Ben Bernanke said Thursday.
"It seems pretty clear now that
the U.S. housing market is cooling
," Bernanke said in a question-and-answer session following a speech he delivered on banking in Chicago.
He noted that home sales are slowing as is housing construction.

When the Fed goes bear............................ :)

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The trouble is this housing bust is going to drag the US economy into recession.

Homeowners who bought with exotic finance packages are going to struggle over the next year as the introductory offers come to an end, and repayments rocket.

Consumption will fall dramatically. It's going to get very ugly over there.

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The trouble is this housing bust is going to drag the US economy into recession.

.... and although the Fed got away with cutting IRs in 2001 to avoid recession, this time IRs will have to continue to stay high throughout in order to prop up the dollar.

Edited by Warwickshire Lad

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More clutching at straws by the doom-mongers. What happens in the United States has absolutely no relevance here.

Even if there was a recession in the US and there was a global recession this will have no effect whatsoever on the housing market here in the UK.

The Bank of England and the Government will never allow house price to crash because there is too much at stake for them.

High house prices are hear to stay and there will never be a property crash. Those people who sold to rent will now find themselves locked out of the property market forever and will just have to get used to living in rented accommodation forever.

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The Bank of England and the Government will never allow house price to crash because there is too much at stake for them.

Poor misguided fool

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Guest Riser

It looks like Greenspan agrees that the US housing boom is over, how long before he 'advises' Brown that the UK market is also done for.

Greenspan says US housing boom is over

NEW YORK (Reuters) - Former Federal Reserve Chairman Alan Greenspan said on Thursday that the "extraordinary" boom in the U.S. housing market in recent years is over.

"This has been quite an extraordinary boom," Greenspan told a Bond Market Association dinner in New York. "The boom is over. I think we can safely say that with a strong degree of confidence."

Greenspan said there was a "high degree of froth in the system," and that it was clear that home equity extraction and the turnover of home sales was waning.

He said it wasn't clear how this will impact the notoriously resilient U.S. consumer...

He said it wasn't clear how this will impact the notoriously resilient U.S. consumer !!!!!

That is an amazing admission from the man who engineered the boom in the first place through artificially low interest rates. Its like setting off a nuclear bomb without having any idea of how big the explosion will be or the potential dangers of the fallout. The US and UK markets could be heading for a very long and very hard nuclear winter.

Edited by Riser

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More clutching at straws by the doom-mongers. What happens in the United States has absolutely no relevance here.

Even if there was a recession in the US and there was a global recession this will have no effect whatsoever on the housing market here in the UK.

The Bank of England and the Government will never allow house price to crash because there is too much at stake for them.

High house prices are hear to stay and there will never be a property crash. Those people who sold to rent will now find themselves locked out of the property market forever and will just have to get used to living in rented accommodation forever.

My friend dont be a fool, the bank of england and governemnent can only do so much to prop things up - what goes up WILL come down as it will become beyond their control. History will prove itself once again - its just a matter of timing thats all....

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Yeah, the best course of action with bruno ('Jonathan Trees') is just to put him on ignore.

They shouldn't ban him, because he's writing valuable free content for the site. It may be garbage, but it has all the right keywords to help the site stay high in the search engines.

Thanks Bruno! Keep up the good work, umbrella-fokker!

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More clutching at straws by the doom-mongers. What happens in the United States has absolutely no relevance here.

Even if there was a recession in the US and there was a global recession this will have no effect whatsoever on the housing market here in the UK.

The Bank of England and the Government will never allow house price to crash because there is too much at stake for them.

High house prices are hear to stay and there will never be a property crash. Those people who sold to rent will now find themselves locked out of the property market forever and will just have to get used to living in rented accommodation forever.

J-Trees,

Your posts are incredible!! :lol::lol: Every one of them is the same, and essentially takes the form (in reply to "X":

"More clutching at straws by the doom-mongers. What happens in 'X' has absolutely no relevance here."

Do you honestly think that UK house prices inhabit some special bubble (on hang on, perhaps they do...) which shields them from all adverse economic effects!?! Or, as I rather suspect, are you in fact just in the employ of the VI thought-police?

Actually, given the repetitive and wooden replies you post, I am beginning to suspect you are actually some sort of automated script: the only problem with this theory is that I cannot imagine an Estate Agent ever being clever enough to write you.

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Who is this "trees" induhvidual? I think my eyes are starting to glaze over each time I see a post by him. Each one is the same formula:

More clutching at straws by the doom-mongers on this site. <Optional remark pondering why people posting on a site called House Price Crash keep banging on about a house price crash>

<Fill in thread subject here> has no relevance here.

Even if <fill in thread subject here> ever did happen, it would have absolutely no effect on the <housing market/economy/society> here in the UK.

<The Bank of England/The Government/Labour/Tony Blair/Gordon Brown> will never allow it to happen because of <fill in wishful thinking about said organisation/individual being able to hold back the sea>.

High house prices are here to stay and you should all get used to it. <Optional drivel attempting to wind up FTBs and STRs by claiming that they'll be stuck in some form of economically/politically/societally-impossible housing limbo>

Sigh... You are so being put on ignore.

Hahah! I guess Marko and me are thinking along the same lines!

Edited by JBFTB

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http://biz.yahoo.com/ap/060519/greenspan_speech.html?.v=2

AP

Former Fed Chair Says Housing Boom Over

Friday May 19, 1:04 am ET

By Joe Bel Bruno, AP Business Writer

Former Fed Chair Alan Greenspan Says Housing Boom Over and Consumer Spending Could Taper

NEW YORK (AP) -- Former Federal Reserve Chairman Alan Greenspan said Thursday that Americans' consumption could taper off somewhat now that the U.S. housing market's "extraordinary boom" has ended.
"This has been quite an extraordinary boom," Greenspan said in remarks at the Bond Market Association's 30th anniversary dinner in New York. "Home sales are off, applications are off, everything is going in the same direction. The boom is over, and you can say that with a fairly strong degree of confidence."
Greenspan said he doesn't see home prices falling on a national basis, but instead in certain areas of the country. He warned reduced access of Americans to equity loan extraction would have an economic impact, which has had an "important effect" in stimulating the economy.

Looks like Alan "Big Al" Greenspan and his protege Ben are on the same page. IMO the Fed are going to crash the housing market to reign in borrowing and thereby avoid inflation in the medium and long term. Better to have a short and very sharp housing crash tna to expand the deficit even further than it is. Al did warn the "froth markets" 2 years ago that pain was on the way and now its a reality.

For those who think the UK is immune from world trends think again and look at the NW chart on the home page. The UK and US housing markets have been mirroring each other for several decades and the same level of irrational exhuberance applies to both.

The only difference today is that the Fed are realists and Gordon believes in miracles.

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The Bank of England and the Government will never allow house price to crash because there is too much at stake for them.

HOW is the question?

They have money supply and interest rates at their disposal

Are we going to see 0% interest rates like Japan?

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More clutching at straws by the doom-mongers. What happens in the United States has absolutely no relevance here.

Even if there was a recession in the US and there was a global recession this will have no effect whatsoever on the housing market here in the UK.

The Bank of England and the Government will never allow house price to crash because there is too much at stake for them.

High house prices are hear to stay and there will never be a property crash. Those people who sold to rent will now find themselves locked out of the property market forever and will just have to get used to living in rented accommodation forever.

*****.

I wonder why the government and the BOE allowed prices to crash in the early 90s. They had no control over economic circumstances then and they won't when the stuff hits the fan this time.

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*****.

I wonder why the government and the BOE allowed prices to crash in the early 90s. They had no control over economic circumstances then and they won't when the stuff hits the fan this time.

Your back, Marina? Bought a house yet? Welcome! :)

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Guest Baffled_by_it_all

Christ on Toast!

If I wanted to buy a house before that website would scare me off. All the daft arguments in their childish simplicity in one list.

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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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