BoE MPC member says prices could drop to 2003 levels.

WTF?_2

Mind you, it's Blanchflower who always wants to cut interest rates.....

http://www.dailymail.co.uk/news/article-1037028/House-prices-fall-30-biggest-crash-seen-Britain-key-Bank-England-member-warns.html

House prices could plunge a further 30 per cent in the property market crisis, a key member of the Bank of England has warned.
The assessment from David Blanchflower, a member of the Bank's interest rate-setting committee, would mean about £55,000 being wiped from the value of the average home, currently £180,350.
At this level, house prices would return to the levels of 2003, a disaster for many who have bought in the last few years.


However, it's significant that a high profile financier would go out on a limb like this, even if his motive is to press for interest rate cuts.

ultra10

Sometimes I wonder how this Crank made it onto the MPC !! . Thankfully the other members have a little more common sence, if it were up to him Inflation would be 5 6 or 7 %..even using the "official" method of calculation !!, which we all know is a load of rot anyway for your average Tax Payer ...
The Bottom line is that property HAS to devalue to a sustainable long term level... period ... there is no easy pill to take ...

mystic_trev

ultra10 wrote: »

Sometimes I wonder how this Crank made it onto the MPC !!

Life is sometimes stranger than fiction, and certainly is in Blanchflowers case. His wife left him for another woman ( sounds like he was only interested in Interest rates going down :rolleyes: ) and a Court case ensued as to if she'd commited adultery or not! I notice he's had it removed from his wikipedia profile, but here it is here

http://www.nycny.com/columns/hodges/

Goodness knows what he's doing on the MPC :rotfl:

adr0ck

interest rates do need to be cut though

stonethrower

adr0ck wrote: »

interest rates do need to be cut though

The bank of England's main job is to control inflation so if they were doing their job properly they would be increasing interest rates.

dudleyboy

adr0ck wrote: »

interest rates do need to be cut though

Why? .

adr0ck

dudleyboy wrote: »

Why? .

i think thats obvious

beingjdc

adr0ck wrote: »

i think thats obvious

To reward people who won't control their spending, while letting inflation get out of control?

So splurgers' debts get smaller, while savers' nest eggs lose their value?

To bail out the buy-to-let 'investors' who can't meet the mortgage payments from the rent?

To stop people going on foreign holidays by making the pound collapse even further against the Euro?

To save the environment as foreigner stop wanting sterling, and the price of oil in the UK rises further so people can't drive so much?

Am I close?

ultra10

adr0ck wrote: »

i think thats obvious

Nope it isn't ..

dougs

ultra10 wrote: »

Sometimes I wonder how this Crank made it onto the MPC

I've always wondered why on earth there is an American on this British committee anyway. :rolleyes:

ManAtHome

dougs wrote: »

I've always wondered why on earth there is an American on this British committee anyway. :rolleyes:

They're saving a few quid paying in dollars?

Would have thought yer average Mercan would have twigged that hacking interest rates has done BA for the US housing market, but I suppose semi-permanent jet-lag can be a bit of a burger...