More "We might do something, maybe" from the BOE

the_flying_pig

mayonnaise wrote: »

There is no reason to worry about UK household debt.

http://www.ft.com/cms/s/0/761ab30c-b941-11e5-bf7e-8a339b6f2164.html#axzz3zhD0Rk00

:rotfl:

Genuinely hilarious stuff.

mwpt

padington wrote: »

The unwinding is happening already. House price inflation is going through the roof. It's only going to get worse.

You don't know what you don't know.

TheeMaskedTurnip

What you don't know won't harm you. Just get on with life.

padington

mwpt wrote: »

You don't know what you don't know.

With that attitude you'll join the crashists for years and buy in way too late and then spend the next ten years hoping for a crash to make up for the one that never happened.

Better just to know after 25 years its all yours and not be discreetly hoping for something that will put hundreds of thousands of people out of work.

mwpt

padington wrote: »

With that attitude you'll join the crashists for years and buy in way too late and then spend the next ten years hoping for a crash to make up for the one that never happened.

Better just to know after 25 years its all yours and not be discreetly hoping for something that will put hundreds of thousands of people out of work.

I bought a house a couple of years ago after re-evaluating the probabilities after the government showed they were socialist as far as the housing market is concerned. As well as reaching a point in life that I couldn't wait longer. I admit my mistake was trying to time the market.

The difference between you and I is I don't pretend to understand the chaotic global economy and simplify everything. You think you can, but you don't know what you don't know.

My strong bet is London is reasonably safe from a crash for a number of reasons. But Mr. Market has roots everywhere and they creep and they creep and cracks start to appear in the walls of clay erected by central banks.

If I had to bet on one black swan event, as a low probability but huge implications, it is an eventual rout on bonds and low yield, leading to demand for higher pay-off for risk (ie. higher yield), leading to higher interest rates. Then the "crashists" would get their wish.

The chances are low but central banks have been blown away by the market before and will be again.