Thursday, January 23, 2014
Crashy, Crashy :-)
Carney must be feeling a bit uncomfortable. When he agreed to take over as bank governor, Britain was still facing headlines about a Ã¢Â€Â˜triple-dip recessionÃ¢Â€Â™. Now everyoneÃ¢Â€Â™s talking about a boom. Unemployment is plunging. When Carney said that heÃ¢Â€Â™d think about raising interest rates if unemployment hit 7%, he thought heÃ¢Â€Â™d effectively parked the issue for two years. But weÃ¢Â€Â™re now at 7.1%, and quite possibly only months or even weeks from his target. Carney has hardly embraced surging house prices with open arms in any case. In December, he warned that there was the Ã¢Â€ÂœpotentialÃ¢Â€Â for another crash. While itÃ¢Â€Â™s easy to dismiss such words as rhetoric, he has made some changes Ã¢Â€Â“ such as preventing the Funding for Lending scheme from being used to fund mortgages.