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Bank's Governor Blasts 'hubris' Of The Bankers He Blames For Credit Crisis

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Bank's Governor blasts 'hubris' of the bankers he blames for credit crisis

Mervyn King yesterday lashed out at the "hubris" of bankers whose greed had triggered the credit crunch and the current world financial crisis.

In an extraordinary intervention, the Bank of England Governor said turmoil in the banking system had worsened in recent weeks and that lenders would have to be more strictly regulated to prevent excessive risk-taking.

http://www.dailymail.co.uk/pages/live/arti...in_page_id=1770

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Bank's Governor blasts 'hubris' of the bankers he blames for credit crisis

http://www.dailymail.co.uk/pages/live/arti...in_page_id=1770

From above, I thought Cable was on our side. The guy must have frikkin Alzheimers:

Liberal Democrat Treasury spokesman Vince Cable said: "The Governor's belief that inflation is likely to rise will concern the many millions of families already struggling to meet their household bills and debt repayments.

"The bursting of the housing bubble makes it more necessary than ever that house prices are included in the measure of inflation.

NO WAY!

Their exclusion from inflation allowed the MPC to keep rates low during rampant inflation. Now that prices are falling he want sthem back in to allow, you guessed it, lower interest rates.

NAY, NAY AND THRICE NAY!

If they are gonna do this I really see no point at all in inflation targetting. The target is there to promote discipline and prudence. If you keep changing it (or what it represents) IT IS NOT A TARGET.

Mark my words Brown, if you allow housing back in to inflation now, the entire chirade will be exposed for what it is : a money printing exercise designed to keep voters ignorant but happy, and politicians in power.

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From above, I thought Cable was on our side. The guy must have frikkin Alzheimers:

Cable has already established that all he cares about is leveraging his fifteen minutes of supposed credibility. As with his calls to nationalise NRK, he's consciously manipulating the appearance of this situation to trigger ill-researched policy response - which, when it explodes as he knows it will, he will then use to discredit the government down the line.

This man is a very dangerous toad. He is not interested in anyone's welfare.

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If they are gonna do this I really see no point at all in inflation targetting. The target is there to promote discipline and prudence. If you keep changing it (or what it represents) IT IS NOT A TARGET.

Mark my words Brown, if you allow housing back in to inflation now, the entire chirade will be exposed for what it is : a money printing exercise designed to keep voters ignorant but happy, and politicians in power.

The targetting of inflation, whats in the basket and whats out, has always contained a political message.

Nothing new.

Since it began, I'm guessing the 60's?, its been manipulated by politicians who want to stay in power.

Move along here nothing new to see.

If you not happy move abroad.

I did and havn't looked back once.

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Cable has already established that all he cares about is leveraging his fifteen minutes of supposed credibility.

... and ....

The targetting of inflation, whats in the basket and whats out, has always contained a political message.

Nothing new.

Could you at least feign indignation?

Think for a second about all those "Watchdog" whiners. Think about every misselling scandal that ever was. Think about the bank bailouts. Think about those that get attention and compensation or bailing out: every last one of the f**kers actually or apparently shamelessly ignorant to the last man. Have you ever known politicians or media hacks stick up for anyone but the lamb to the slaughter?

My point: whilst it is obviously too L8 for us to feign ignorance, a little indignation would,'t go a miss. It is well recognised that there are more savers than borrowers in the country, but where are the political sympathies currently? Are they with the majority, or with the biggest mock or otherwise ignoramouses and whiners?

In short cynicism is great for comedy and looking smart, but that's about it.

Edited by Sledgehead

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From above, I thought Cable was on our side. The guy must have frikkin Alzheimers:

Liberal Democrat Treasury spokesman Vince Cable said: "The Governor's belief that inflation is likely to rise will concern the many millions of families already struggling to meet their household bills and debt repayments.

"The bursting of the housing bubble makes it more necessary than ever that house prices are included in the measure of inflation.

lol we said this about 16 months ago that they'll start to include or think of including house price back into it.

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lol we said this about 16 months ago that they'll start to include or think of including house price back into it.

ahem, I think you'll find that comment is more cynicsm. What's the point in me ranting and raving like Jim Cramer to have half the frikkin board follow up with "yeah, that was only to be expected"? You might as well add "as I put my cross against NuLab in the polling booth, I actually knew they'd put housing back in the target." <sighs>

Edited by Sledgehead

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The more it goes the more I like Mervyn King. He is the only CB that will say things for what they are and flight to clean things up. It is just about possible that with a guy like that at the helm the UK will come out this crisis in better shape than the rest.

The concept of UK Central Bank independence is going to be severly tested in the years ahead.

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Could you at least feign indignation?

Oh don't get me wrong, I'm livid. What got us into this mess is asymmetric treatment of asset prices on the way down and inflation measures on the way up - and the suggestion of widening the metric of what constitutes asset prices in order to allow for more of the same is so ignorantly malfeasant as to qualify as treason. But when it comes to Cable, there's just no myth to shatter, no reality-vs-model error to spark my ire - he's been blatantly all about the Vince Cable road-show from the start, and to hell with the consequences.

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Oh don't get me wrong, I'm livid. What got us into this mess is asymmetric treatment of asset prices on the way down and inflation measures on the way up - and the suggestion of widening the metric of what constitutes asset prices in order to allow for more of the same is so ignorantly malfeasant as to qualify as treason. But when it comes to Cable, there's just no myth to shatter, no reality-vs-model error to spark my ire - he's been blatantly all about the Vince Cable road-show from the start, and to hell with the consequences.

I agree with Cable about putting housing back into the RPI or whatever, but only after the HPC is over. That way you will help prevent further bubbles in housing, and have some symmetry.

Having said that*, there are easier ways, which is that once you see lending criteria easing to dangerous levels, the govt should step in and put legislation in place to bring lenders into line. I expect to see special measures introduced to penalise mortgage fraud. ;)

*as it has been demonstrated that the BoE base rate is a bit of a sham and banks seem to ignore it when they choose, and maybe the market should set these things anyway

Edited by bobthe~

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  • 293 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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