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Guest Charlie The Tramp

Bank's Governor Blasts 'hubris' Of The Bankers

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Guest Charlie The Tramp
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.

He said: "This financial crisis... arose out of the heart of the financial systems, in the main financial centres."

Mr King told the Commons Treasury Select Committee: "There are a lot of lessons to be learned.

"The conclusions inevitably tend in the direction of saying that financial institutions will have to hold more capital in the longer run and that these activities will have to be monitored much more carefully."

He said the global crisis had moved into a new phase.

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

With the credit crunch making mortgages harder to find, Mr King warned that house prices could fall in real terms for years to come.

Household budgets would also come under increasing strain from rising food and fuel prices.

He cautioned that inflation could hit three per cent - but offered the prospect of some relief by suggesting the crisis might make the Bank more disposed to cut interest rates, possibly as early as next month.

But he also made the startling admission that the Bank's two cuts since last winter have made no difference to the average family's mortgage payments.

Webcast

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

:) I'd like to see video of that... I find that there's usually a lot of subtle detail when Mervyn King speaks.

Do we have to trust second-hand information from the likes of the Daily Hate, or is there a webcast we can find?

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Guest Charlie The Tramp
:) I'd like to see video of that... I find that there's usually a lot of subtle detail when Mervyn King speaks.

Do we have to trust second-hand information from the likes of the Daily Hate, or is there a webcast we can find?

HoC webcast on demand.

Can someone supply a Link as I have trouble with links to these webcasts. :(

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HoC webcast on demand.

Can someone supply a Link as I have trouble with links to these webcasts. :(

Something to search for in Google would do it for me... any pointer at all...

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With the credit crunch making mortgages harder to find, Mr King warned that house prices could fall in real terms for years to come.

The fact that he feels the need to specify 'in real terms' is interesting. Given that it's a no-brainer that HPs will correct significantly, almost certainly by more than the inflation target ... what can we infer about the Governor's expectation of meeting that target? :ph34r:

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Guest Charlie The Tramp
Excellent... I've not got as far as blasting the hubris yet... :)

Chairman asks Mervyn why he used the words Credit Crunch when Treasury Officials were told not to use it. :)

Classic, did he ask the Banks why they were not lending to each other. :D

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His answers to the specific questions about house prices are excellent. It is obvious that he can't say that there will be a crash... he says everything but.

1. Evades answering what he thinks will happen - and says that he "Would welcome stability"

2. He says that he does not see house prices (substantially) higher than today in 5 years time.

3. Says no-one can predict exactly what will happen.

That's as good as a confirmation of HPC in my view.

Bracnhflower was good too - implying that we're following the American experience - just a few months behind.

And I can't belive MP Jim Cousins - clearly trying to justify a Socialist Keynesian bale-out for sub-prime borrowers... Then I looked him up...

http://www.theyworkforyou.com/mp/jim_cousi...on_tyne_central

He must be worried that his voters will come unstuck - they're probably all with Northern Rock.

Edited by A.steve

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Guest Charlie The Tramp
3. Says no-one can predict exactly what will happen.

Even sailors fear uncharted waters, and boy how we are entering these waters today.

At least I have strong sails and a double skinned boat regardless what Cgnao tells me. ;)

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Guest Charlie The Tramp
Charlie, I've always got the feeling that you are a fan of Merv, you see him playing with a 'straight bat' and in some respects fighting a good fight v the evils of said 'hubris'. Is that how you see it, that he's the good guy?

He`s not perfect but none of us are.

I have been following his statements since his appointment, comes across very calm and stable.

Believe he was slow with NR, but who really was to blame Mervyn or the FSA ?

He warned on many occassions about the debt culture, but really what could he do, ban banks from lending irresponsibly ?

I`m not a fan of anybody but hope I can look at things clearly and fairly without slagging them off without good reason.

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Guest Charlie The Tramp

A 45 minute planned hearing turned out to be a 1 hour 43 minute hearing, much more to discuss than they thought. :rolleyes:

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  • 297 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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