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Mervyn King

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Knowing how highly many posters on this site regard the Governor of the BoE, I wondered how you lot would like this article...

In testimony to the Treasury Select Committee, King said the housing market is, by and large, in a 'reasonably stable position' and 'long may that continue'.

King also said there may be perfectly reasonable reasons why house prices may be high compared with average earnings on a historical average.

and this...

Though he noted the social problems, he said the proportion of the adult population facing insolvency is only 0.2 pct and therefore 'unlikely to have much impact on consumer spending'.

http://www.forbes.com/markets/feeds/afx/20...afx2848437.html

(Apologies if this has previously been posted)

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Well he's changed his tune. What would he say to those like myself who heeded his previous warnings about house prices? Pathetic.

Edited by simon99

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Mervyn King, the Governor of the Bank of England, said yesterday: "Relative to average earnings or incomes, or anything else you could look at, house prices do seem remarkably high."
(Telegraph.co.uk Thursday, 11th May 2006)

I am afraid he has been hanging around his boss too long. His credibility rating is barely above zero now.

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Mervyn King, the Governor of the Bank of England, said yesterday: "Relative to average earnings or incomes, or anything else you could look at, house prices do seem remarkably high."
(Telegraph.co.uk Thursday, 11th May 2006)

I am afraid he has been hanging around his boss too long. His credibility rating is barely above zero now.

Mervyn does seem to be wanting to have his cake and eat it. Different messages for different audiences.

Very slippery ....... and very Nu Labour.

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Guest Alright Jack

For the life of me I cannot understand why Mervyn is looked towards as some kind of ally for HPC.

The central bank exists to offload excessive government spending on to the public using a variety of ridiculous illusions. One of those is the bond market.

The governor is essentially a public sevant chartered to do the bidding of the administration (i.e print money and get away with it). To place any trust on him to somehow 'do the right thing' (whatever that is?) is foolhardy in the extreme. You should be trying to protect yourself from him, not defering to him.

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Guest Alright Jack

I see this thread went the way of most, that is into total irrelevance despite my excellent comment above.

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"The central bank exists to offload excessive government spending on to the public using a variety of ridiculous illusions. One of those is the bond market.

The governor is essentially a public sevant chartered to do the bidding of the administration (i.e print money and get away with it). To place any trust on him to somehow 'do the right thing' (whatever that is?) is foolhardy in the extreme. You should be trying to protect yourself from him, not defering to him.

- Alright_Jack"

Alright Jack! - care to explain in a bit more detail? Is this an Austrian view?

What you have said sounds about right - but I do believe that they have to be cautious if they are playing this game.

HAL

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Merv has no independence whatsoever, his charter is to keep inflation near the limits set by the governemnt, they give him the false CPI figures, if the real cost of living inflation figures were independently collated then perhaps Merv would have had to increase interest rates many years ago and we wouldnt have the massive asset (house) inflation we have today, ie too much money printed, this is what I call real inflation, my savings have lost half thier value in the last 5 or 6 years, unless I want to buy 'made in china' not a house. ie Debtors rewarded, Savers punished ( and they have the dam*d cheek to say people ar'nt saving)

Edited by steve99

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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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