Wednesday, February 13, 2008

David heard things that Mervyn never said! In fact King said that housing market is at risk from the credit crunch!!!!

Inflation report: Rates to fall not plunge

This is pure transvesting the truth for the benefit of VIs. King never said "said that house prices should be in for a long period of stability"!!! But in the opening remarks (link posted in Smith's blog) King said: "The impact of tighter credit conditions is apparent in property markets, and is particularly likely to affect investment in commercial and residential property and perhaps business investment more generally"

Posted by confused76 @ 02:31 PM (1926 views)
Please complete the required fields.



25 thoughts on “David heard things that Mervyn never said! In fact King said that housing market is at risk from the credit crunch!!!!

  • I am speechless re Kings remarks!

    “As I explained in my speech in Bristol last month, the adjustment we are experiencing is part of a longrun
    rebalancing of the world economy that, in the United Kingdom, will mean some shift in total
    demand, away from spending and importing, towards exporting. That process will be supported by the
    6% fall in sterling’s effective exchange rate over the past three months, which will help to offset the
    weaker outlook for the world economy. But the fall in sterling will also put upward pressure on import
    prices and moderate the growth of real disposable incomes.”

    Unprecedented the governor of a central bank auspices fall in currency. Get out of the pound before the big sell off

    Reply
    Please complete the required fields.



  • I am amazed as well, C76 – for the BoE governor talking about sacrificing the pound with lower rates to stimulate an economy that is slowing, and will continue to slow whatever they do, is pandering to his lords and masters the financial institutions and the government. Sterling will be soundly punished for this, but it looks like a re-run of ‘the pound in your pocket is worth the same as it has always been’ form of government.

    2008: Brown defends ‘pound in your pocket’
    The Prime Minister, Gordon Brown, has defended his decision to devalue the pound saying it will tackle the “root cause” of Britain’s economic problems.

    Making imports much more expensive, but giving the bicycle parts manufacturers a hand is sure to change the fortunes of this indebted society. The governmnet and BoE are going to bring sterling to its knees just to devalue the British debt held by others nations. I wonder how long this depression will last?

    Reply
    Please complete the required fields.



  • “some shift in total demand, away from spending and importing, towards exporting” – and what exactly will we be exporting?

    Reply
    Please complete the required fields.



  • we could export Gordy Brown…. or should that be deport…lol

    Reply
    Please complete the required fields.



  • As a economist, he has committed a cardinal sin……he clearly has vested interests.

    What a fool.

    Reply
    Please complete the required fields.



  • @jack : what exactly will we be exporting?

    Hmmm… financial services? which is to say : nothing, also known under the brand “emperor’s new clothes”.. comes in several varieties of nothing, e.g. CDO’s or “mutton dressed up as lamb”, amongst other worthless paper

    We also apparently export a great deal of mobile phones, which is to say : nothing, also known as “carousel VAT fraud.”
    ( http://www.finfacts.com/irelandbusinessnews/publish/article_10005795.shtml )

    And we have the arms industry, it seems if BAE bribes Saudi officials they will actually buy a load of jet fighters from us, happy in the knowledge that the UK government will throw a blanket of “National Security” over their illegal activities. Of course, rival firms might sue them for billion$ in the US.

    Errr the scots export actual whiskey… i.e. a real product from real people doing real work. I guess that might be sustainable in the longer term.

    So, the UK exports nothing, nothing, illegal jets and whiskey. As I’m sure you’d agree, a solid basis for future UK economic strength.

    Reply
    Please complete the required fields.



  • Listen folks : They all invested in Dollars, now it’s time to collect at our expense. Saw this coming a long time ago, you couldn’t make it up, it’s better than fiction. Wow !!! I wish I had a lot of money and was in control of the economy too.

    Reply
    Please complete the required fields.



  • So he’s doing exactly what Eddie George warned against – he’s going to prop up the housing market at the expense of the wider economy?

    Reply
    Please complete the required fields.



  • Made a very good start by exporting Tony and Cherie Blair.

    Reply
    Please complete the required fields.



  • Thanks for the replies – Yep, UK manufacturing has been depleted down to almost zero and in the wise words of one commentator recently (who’s name escapes me) – “the UK economy has over the last 10 years been a PR stunt”

    Reply
    Please complete the required fields.



  • Yep, Sacrifice the pound and when it becomes worthless, its a good excuse to move the UK currency into the Euro.

    Reply
    Please complete the required fields.



  • stillthinking says:

    Listen to the bit on the BBC “soaring inflation” video report again. When he says that house prices will be stable for 4 years, he clearly catches his throat. Poor old bloke doesn’t feel comfortable lying. I do that myself when lying and obviously guilty, so easy to recognise.
    Really, listen to that bit again. He can’t quite manage it.

    Reply
    Please complete the required fields.



  • @Confused.. thought the penny had dropped.. it is merely a game “the big boys play”.. Karl Popper’s theory of falsification.. proves the fact! In studies, we were always told that China would be the strongest economy by 2010.. reading & researching “the opium wars” of the 17th Century. This debate whether the Merv will do anything both futile & pointless. I say this as HPC is announcing the obvious, and the world financiers “hold the bat”. It is really a case of “when” and “how hard” they use this bat on the posterier of the free market economy.

    Yes “free market economy”, which is an hypocritical term in it’s own essence, as it is, is influenced by far more powerful concerns than we can yet imagine. It is for when this “elite” decide that it is time for a correction that it will occur, neither sentiment or suspicion will change this. So Credit Crunch, Credit Munch!!!

    “Merv the sparrow” is simply the messenger from the office on high. And we ain’t talking GOD.

    Reply
    Please complete the required fields.



  • OK, I listed to the news conference

    Mervyn said VERBATIM that falls in house prices are possible, that falls in real house prices are definitely LIKELY, leading to a re-alignment of parameters such as price-average income ratio. He said that it is UNLIKELY to see any house price appreciation in the next few years

    YIIEEEEEEEEEEEEEPPPPIEEEEEEEEEEEEEEEEEEE

    Tune in at
    http://streamstudio.world-television.com/CCUIv3/frameset.aspx?ticket=117-118-6094&browser=ie-11-10-0-9&target=en-default-&status=ondemand&stream=rm-video-300

    or

    http://www.bankofengland.co.uk/publications/inflationreport/irlatest.htm

    towards the middle of the newscast

    Reply
    Please complete the required fields.



  • David SmutH attended the news conference!! What the hell was he on??? LSD? Cocaine? Weed?

    Reply
    Please complete the required fields.



  • David Smith's Sub Prime. . . says:

    Rubbish Mr. Smith. Please open up your blog again so that proper economists can properly comment on ‘your’ (or Rupert’s) viewpoint.

    Reply
    Please complete the required fields.



  • Journalizt “Why aren t lenders passing on BoE rate cuts?”

    Mervyn “Lenders margins are expanding after a period they were compressed by intense competitions and arguably unwise decisions” (i.e. a al Applegarth)

    WOOOOOOOOOOOOOOOOWWWW

    I wonder if David Charlatan Smith was asleep at that point

    Reply
    Please complete the required fields.



  • King: “In one year time, RPI may quite possibly be below CPI” and he smiled “These things move around” and he smiled again

    being the difference between the two the cost of housing, he is saying that HPI will turn negative this year
    Deep inside he is one of us!

    WOOOOWWW

    Reply
    Please complete the required fields.



  • planning4acrash says:

    manufacturing still accounts 4 about 20percent of economy and we are the worlds largest exporter of cultural goods. Manufacturing that remains is robust and we own many foreign operations that could be brought back if sterling depreciates.

    Reply
    Please complete the required fields.



  • Presumably to Eurozone is where the export growth will come from.

    Looks like holidays in the UK will rise as the pound falls against the Euro. The budget airline carriers will be in trouble squished between falling demand, and rising prices.

    Reply
    Please complete the required fields.



  • planning4acrash says:

    If a house price crash merely affects RPI, and not CPI, then BOE cannot reduce rates for houses without triggering a letter. The contrary would require a clear change in policy. Maybe government has given up targeting houses2achieve share price stability?

    Reply
    Please complete the required fields.



  • it_is_going_with_a_bang says:

    I disagree with our manufacturing being robust. I know of at least 3 medium size companies 200/1000 employees per company locally that are in the process of moving their manufacturing and labour intensive activity abroad – but they are 2 to 3 year plans. As for cultural goods “art, antiques, books, music,cultural services and newspapers” not exactly something thats going to keep us going for long.
    Companies would take probably 5 years to turn around manufacturing once it has gone. Anyway, the savings on manufacturing abroad are huge, the pensions for starters. It’s pretty much a one way street unless things get very bad. But by then this country will have already suffered greatly.

    This isn’t just about house prices – its about “not” using house prices to make an economy.

    I don’t see it going bad real quick but the seeds have certainly been sown.

    Reply
    Please complete the required fields.



  • you deluded fools!

    Reply
    Please complete the required fields.



  • planning4acrash says:

    Maybe, but my point is that Euro inflation and US inflation appears out of control, even relative to our poor standards. That suggests that they may well have higher interest rates than the UK in the longer term. That may see the UK with a flood of inward manufacturing investment within a 5yr window. Also, with RPI fluctuating up and down relative to house prices, CPI appears relatively stable and UK interest rates may well stick in the range of 4 and 6% for the foreseable future. If that happens, we may have stability and gain something from all this at a time when others are going for panic measures. At the end of the day, they will need to do something about RPI, which will be above CPI during a housing boom and beneath during a crash. Tho I can imagine that house prices will now be managed more by regulation than interest rates. For example, management of CDO’s, more focus on fraud and I bet that the FSA gets powers to regulate buy to let, which will no doubt be taxed heavily in the medium term, because it is houses that are putting pressure on the UK’s stability, because it is possible to get house price or economic stability via interest rates but you can’t have both at the same time.

    I’m surprised, I thought my relatively bullish posts would get a mouthful!

    Reply
    Please complete the required fields.



  • Well it does look as if we’ve finally got decision makers to pay attention to our rants about basing an economy on rising house prices. The government is being forced to re-assess their strategy for UK plc which until now was based on house prices only ever going up, and not before time.

    It is a small victory for us.

    The only regret is that people didn’t pay attention earlier – two years ago when we were warning of the perils of runaway house prices and how it was unhealthily re-alinging the economy to capitalise more and more on the boom, we said here that there is no way it can continue. For that, we were labelled “doommongers” and “cynical naysayers”. Ironically though if powerful people had paid a little more attention to the few journalists that spoke out against the recommendations of their editors and property section advertising executives, the UK would almost certainly not be in the position it is in now.

    For the chancellor to now insist that everything is in fact okay and that there’s nothing to worry about is, in itself, very worrying. Although it does demonstrate how misguided the leadership – not the voting population but the leadership – have become.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>