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Carney: UK housing in widespread recovery
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???the_flying_pig wrote: »so what's the third category? bitcoins,?
Lending by banks is significantly lower since the start of the credit crunch. We are only just starting to come out from that. It is still a tiny figure compared to before. http://www.ft.com/intl/cms/s/0/2ccf98a6-d989-11e2-98fa-00144feab7de.html#axzz2ta3PILf50 -
???
Lending by banks is significantly lower since the start of the credit crunch. We are only just starting to come out from that. It is still a tiny figure compared to before. http://www.ft.com/intl/cms/s/0/2ccf98a6-d989-11e2-98fa-00144feab7de.html#axzz2ta3PILf5
Question is what is the appropriate level?
As soon as liquidity sneezed it ground to near halt."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
HAMISH_MCTAVISH wrote: »He also said there was little the bank could do to cool the London market, where prices were rising far faster.
Yet David Miles today has suggested they will only use interest rates to cool the housing market as a last resort.
He also says the FPC have a toolkit to deal with prices "spiraling out of control".
All suggests they can do something, but don't necessarily wish to.
Which all seems very at odds with his colleague, Mark Carney who says there is little that can be done?
Secondly, if the raising of interest rates is such a big stick only to be used as a last resort, doesn't this leave open a thoughtpath that they are letting people get into unsustainable conditions today?David Miles, an external member of the Monetary Policy Committee (MPC), said rate rises were a "big stick" that would only be used as a last resort.
“We do have, as the last line of defence, the blunt instrument, the big stick of interest rates,” he told Bloomberg TV. “If you did get into a situation where the tools that the Financial Policy Committee (FPC) have seem not up to the job of stopping overheating in the housing market, we would then turn to the blunter instrument of using bank rate.
"We’re a long way from that.”
It can't really be a "big stick" only to be used as a last resort unless there is risk being taken now that that "big stick" will hurt later on?
http://www.telegraph.co.uk/finance/personalfinance/interest-rates/10644679/Interest-rate-rise-a-last-resort-to-cool-housing-market.html0
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