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Quote Of The Day: UK Housing Market "Warp Speed" Edition

Tyler Durden's picture




 

A month ago, the Bank of England's Cunliffe dismissed UK realtors' fears of a central bank-driven bubble in housing, by stating confidently that "it is not a boom or a bubble. It is a market correction, albeit a fairly quick one." But now, the man really in charge of the liquidity pedal, the BoE head Mark Carney has proclaimed: 

  • BOE'S CARNEY SAYS CONCERNED ABOUT POTENTIAL DEVELOPMENTS IN UK HOUSING MARKET
  • BOE'S CARNEY: WANTS TO AVOID HOUSING MARKET MOVING TO 'WARP SPEED'

In the speech at the New York Economic Club, Carney went on note that this BoE-created bubble could be popped by raising capital requirements against the housing sector if need be; but we suspect the faster way to pop the momentum-chasing hot-money frenzy will be to pass the foreign homebuyers' capital gains tax.

 

So, it would appear, that unlike his brethren in the US, Carney is able to see bubbles - and it seems is capable and ready to react to them...

 

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Mon, 12/09/2013 - 14:53 | 4229873 EscapeKey
EscapeKey's picture

Concerned? As in, it's not rising sufficiently quickly, for his inflation-minded brain?

Look at what he did to housing in Canada. Concerned, my ass.

Mon, 12/09/2013 - 15:10 | 4229940 whatsinaname
whatsinaname's picture

Wonder how the UK Gilts market has been faring after they suspended their QE programs ? Hasnt impacted their housing market atleast (upto now).

Mon, 12/09/2013 - 15:58 | 4230132 Pinto Currency
Pinto Currency's picture

 

Okay so Carney wants to print money until everything achieves 'escape velocity' but not 'warp speed'.

Sounds kind of scientific.

Next stop for Carney, central bank governor of Nepal.  Up high where he can watch all the economies in orbit.

Mon, 12/09/2013 - 16:46 | 4230326 smlbizman
smlbizman's picture

the problem the way i see it is...suck them all in than set the tax trap...not before...yea hes a genuis....or a cocksucker

Mon, 12/09/2013 - 15:32 | 4230023 JR
JR's picture

Guessing at the markets is like playing Five-card Stud with the central planners when you have four cards.

How long will the west endure this tyranny over markets? Is the road we are traveling the same road Aleksandr Solzhenitsyn was forced to travel? Is Adam Smith’s west to end like Stalin’s USSR?

 “Aleksandr was raised by his mother in abject poverty,” wrote Yuri N. Maltsev on Mises Daily upon Solzhenitsyn’s death in 2008, “as his earliest years coincided with war communism and its abolition of private property (making economic calculation impossible); what followed was mass starvation and destruction. His family was no exception — their property was confiscated and later destroyed by central planners.”

Just how many trillions in property and savings have been destroyed and/or confiscated in this century alone by the west’s “central planners”?

Mon, 12/09/2013 - 14:55 | 4229883 WhyDoesItHurtWh...
WhyDoesItHurtWhen iPee's picture

"New York Economic Club" and you ain't in it.

Mon, 12/09/2013 - 15:07 | 4229897 JustObserving
JustObserving's picture
  • BOE'S CARNEY: WANTS TO AVOID HOUSING MARKET MOVING TO 'WARP SPEED'

If you want to see what caused the housing bubble in the UK, look in a mirror.  I would suggest you resign before it bursts just like Bernanke did.  Or, perhaps, you can buy 70% of the UK housing market to prop up the bubble as you do for the debt markets:

 In July 2012 it (Bank of England) announce another £50 billion,[59] bringing the total amount to £375 billion. The Bank has said that it will not buy more than 70% of any issue of government debt.[60] This means that at least 30% of any issue of government debt will have to be purchased and held by institutions other than the Bank of England (Wiki)

Mon, 12/09/2013 - 14:59 | 4229899 Archetype
Archetype's picture

We have all been running in ludicrous speed for way too long.

Mon, 12/09/2013 - 15:01 | 4229907 ParkAveFlasher
ParkAveFlasher's picture

UK is going plaid.  Previously, it was simply tweed.

Mon, 12/09/2013 - 15:07 | 4229928 darteaus
darteaus's picture

He wants to keep it on impulse then?

Mon, 12/09/2013 - 15:10 | 4229939 ItsDanger
ItsDanger's picture

Engage!

Mon, 12/09/2013 - 15:20 | 4229955 evernewecon
evernewecon's picture

 

 

 

Their help-you-buy isn't someone ripping

off the name Help U Sell (r.e. brokers/U.S.)

but obviously their taxes helping people

buy the inflation sitting on their banks'

books.

 

What banker likes holding assets last 

priced with fluff?

 

The inflation will sit there for a 

while.  Who knows when their r.e. 

market will then get less privatized

and more supply/demand reflective?

 

Without the interference the buyers

would obviously be paying much less.

 

Those who SOLD the mortgage bubble

would've cleared the market long 

ago if banks weren't shielded from

resolution trust corporations.

 

The mortgagors should have non-recourse.

The ones most over their heads only

put down 5 or 10% anyway.

 

In the U.S. loss sharing is those who

SOLD the bubble buying a lot of it

back no questions asked, combined with

holding mortgagors' feet to the fire.

 

The British banks, with help-u-buy, will

be holding ongoing inflation in liquid 

form.  Their property buyers will be

holding it in debt form.

 

What a deal, what a deal.

 

 

 

Mon, 12/09/2013 - 15:17 | 4229957 Bertie Bear
Bertie Bear's picture

This is one of the biggest bubble blowers in history. They should send him to Detroit to revive the city!

Mon, 12/09/2013 - 15:17 | 4229960 Kreditanstalt
Kreditanstalt's picture

All the idiot central planners have to do is STOP TARGETTING INTEREST RATES!!!!!!!

Mon, 12/09/2013 - 15:23 | 4229988 whatsinaname
whatsinaname's picture

Did the UK not stop targetting rates by suspending QE purchases ? I might be wrong but its had to keep track of which CB is doing QE and which one is not !!

Mon, 12/09/2013 - 15:28 | 4230008 Kreditanstalt
Kreditanstalt's picture

I'm not sure either...But they have many ways of doing it...deficit spending, outright purchases of Gilts, bailouts to banks...how can anyone deny that credit and money are still expanding?  And...if NOT, how can "interest rates" remain at 0.5%??  

Mon, 12/09/2013 - 16:50 | 4230351 smacker
smacker's picture

QE in the UK was suspended for the time being. It could easily be restarted whenever the Chancellor/BoE choose.

Mon, 12/09/2013 - 15:28 | 4229983 Jack Burton
Jack Burton's picture

The UK economy for the 99% is fucked! This is a fact, all the statistics show that to be true, even with the manipulation of numbers to hide the recession on the High Street.

The UK is now a fully functioning Banker's Colony. Meaning that banking has captured government and the needs of the markets and bankers down at Canary Warf and in the "City of London" rule the day.

UK savers have been robbed of over 300 billions pounds a year via central bank policies. Recession has forced savers to withdraw their money to spend for food and fuel. Zirp means nobody wants to deposit savings even if they had any.

Unemployment among the native population is high, even as open borders brings hundreds of thousands of low wage workers and those seeking welfare benefits. Cameron approves of this and seeks to keep borders open for the coming invasion from Rumania and Bulgaria coming the 1st of the year. Not only that, Cameron is sticking his nose into Ukrainian domestic democracy to try and get Ukraine into the EU so their population can also enjoy freedom of movement into the UK.

There is no end to this, and this fucking fake housing bubble is the only economic solution the government can come up with. But we know this is only in aid of banks who have all this housing on their books backing rotten loans. THAT is what public money paid to support house prices is all about. THAT is all you need to know. Banks NEED a housing bubble to stay solvent. Even as RBS has been caught detroying small businesses in hopes of buying up the failed enterprises at bottom dollar. This is fact, evidence proves the bankers are using financial engineering and lies to dupe small business into suicidal relationship with banks.

The whole rotten mess needs a revolution on the streets or it will never be sorted out. Britian is already a failed state, printing money at light speed and borrowing against future economic growth which will never come. The UK is fast becoming a third world nation and Cameron and his Banker Buddies are all behind it. People should arm themselves and take to the streets, otherwise they will be living in a shit hole third world African and East European like hell hole. If the people do not take up arms and join UKIP in an effort to take back the nation then they are fucked for good! Even if UKIP has some racist leanings, it is not the right wing fascist party the liars make it out to be, after all, why shouldn't British people have their own country? Being white is now a crime in Europe, if you want your own nation you are a racist. But if you are black or brown and want your own nation you are a freedom fighter nationalist deserving of UN support. Who really is racist? The EU is!

Mon, 12/09/2013 - 15:47 | 4230091 reload
reload's picture

Good analysis Jack, we have become the nation you describe. Most simply dont realise yet the hollowed out shell of an ecconomy that the UK has become. About the only things we can do now are `the city`, massive government - trying to micromanage everything and of course build and sell each other houses. 

My local county town was heaving at the weekend with shoppers buying cheaply made imported crap for christmas, the restaurants were full. nobody seemed to have a care in the world. However the people I talk to from all walks of life are beggining to understand that the red team / blue team distraction is a con and that they are being shafted badly by the third Prime minister in a row. But while there is any spending power in a welfare cheque not much is going to change.

Mon, 12/09/2013 - 19:01 | 4230794 Australian Economist
Australian Economist's picture

I was chatting to a Wealth Manager the other day. He's really bullish, all his clients are now putting their money into stocks. Lets see how that works out.

Tue, 12/10/2013 - 04:18 | 4231755 Ghordius
Ghordius's picture

Jack Burton, you have quite a long list of complaints vs. British policies. yet somewhere in the middle you change course, and at the end this is the EU's fault? for being racist?

Mon, 12/09/2013 - 15:23 | 4229993 sdmjake
sdmjake's picture

What have I done? My brains are going into my feet....Stop this thing!

We can't stop, it's too dangerous... We've got to slow down first.

Bullsh*t, stop this thing!

http://www.youtube.com/watch?v=wI4tevra8Lg

Mon, 12/09/2013 - 15:39 | 4230046 Inthemix96
Inthemix96's picture

Jack Burton my friend +1,

Let me add this.  Our right honourable cunts in the houses of peodophiles have given themselves a pay increase of 11% plus expenses.  While food bank participation in this country is exploding.  While pieces of shit like the welfare minister 'Iain Dickhead Never Struck An Honest Days Work In His Life Cunt Smith' lives on around £6,000 a week, he expects us daft cunts to live on £54 a week, and yes it comes out the same pot and yes you read that right, £54 fucking quid a week.

Meanwhile, the fuckers still keep the borders wide open and are now allowing an influx of more eastern europeans to take the jobs that just are not there on the first on Jan.

We are nearing revolution in this shit house of cuntry.

Listen my American friends, do not come here, stay away, the quaint olde village you have read about or your mother told you is fabrication.

We are at breaking point, and I might sugest to those GCHQ listening in, this government have been warned their policies towards energy will kill a minimum of 35,000 people this winter.  This is corporate manslaughter.  Think about it you cunts and act accordingly.

We.  Are.  Not.  Fucking.  Amused.

Mon, 12/09/2013 - 16:15 | 4230201 Rock Sniffer
Rock Sniffer's picture

Gets a bit fruity when a copper you're chatting to mentions the word "revolution".

Ex-SBS chap I know just bought a poster of Cameron.  To take home and use as a target.

Mon, 12/09/2013 - 17:06 | 4230426 giggler321
giggler321's picture

My mate had a tax investigation on behalf of our beloved HMRC, (lest not forget she didn't pay inheritance tax when mum died, god rest her sole), so they ask him how he was living on 200 a week?  he turns around and says, but you expect me to live on £50 when I sign on.  Reply, ... nothing...

Mon, 12/09/2013 - 16:12 | 4230184 tocointhephrase
tocointhephrase's picture

Warp speed hit central London months and months ago. CGT will not help as investors will refuse to sell and just continue collecting their yield. You should see the listing prices agents are coming up with. It's a mess and will not end well

Mon, 12/09/2013 - 16:11 | 4230187 Rock Sniffer
Rock Sniffer's picture

Market correction my arse.  Correction to what?  Prices far out of whack from any reasonably vaiuation at the top of the biggest credit bubble in history.  Cunliffe is missing a "t" from his name.

Unconstrained credit creation (out of thin air) in an illiquid market ramped up by Carney's explicit guarantee to supply as much liquidity as needed is just reinflating what was a sensibly deflating bubble.

Fucking idiot central bankers have blown bubbles all over the world.  I'm with Roubini on this one - it's going to end badly.

I need to get off this fucking planet.  

Mon, 12/09/2013 - 16:34 | 4230265 smacker
smacker's picture

"Market correction"??  LOL. It's nothing of the sort.

 

It's a "political correction", engineered - not by Mark Carney - but by one "George Wide Boy Osborne" to fool Brits that the long recession is ending, confidence is returning, the economy is growing and we should all get back to property speculation and then vote Tory at the May/2014 EU elections and especially the UK general election in 2015.

Mon, 12/09/2013 - 16:33 | 4230270 jmcadg
jmcadg's picture

I would happily share a few pints with Jack Burton, InTheMix96 and reload. We'll put sirs. We are going to hell in a hand basket in the UK. Zombies shopping for shit with money they haven't got whilst thieving psychos feel justified in taking 11% wage increases for watching even more porn. This place is a disgrace. This will all end badly.

Mon, 12/09/2013 - 19:49 | 4230936 Jack Burton
Jack Burton's picture

Indeed! One wonders how it all got this bad. I remember the rule of Tony Blair and labor when I was often in Britain, this was a replay of Mr. Clinton here in America, a so called liberal working man's party was in fact used to push through the Neo-Liberal economic agenda that set the bankers free to turn our two nations into banker's colonies. The scale of Banking in the UK blows my mind. My daughter has a friend who is a project manager at RBS, he is fucking 30 years old, been in banking for 5 full years. Even though RBS is bankrupt and a ward of the UK state, he is a millionaire already. Owns condos, farms and a town house. The guy made this money at RBS during the time when UK taxpayers were ordered to pay billions of pounds to the bankrupt bank. How the fuck does this work? The little cunt makes a fortune at a bankrupt bank and was being paid by UK taxpayers. How the fuck does that get to go on?

Oh, you elderly UK citizens: put an extra jumper on and think about the RBS millionaires living the high life in their villas and condos down in Chelsea.

Tue, 12/10/2013 - 04:19 | 4231759 Ghordius
Ghordius's picture

let me guess: this, too, it the EU's fault?

Mon, 12/09/2013 - 16:55 | 4230362 MTAR
MTAR's picture

This is Carnery just doing his Sham WOW!! he did it Canada and left them with a bunch bail-in policies and moved on...of course he sees bubbles, he's a central libor banker - lol! 

http://www.youtube.com/watch?v=23zGquwJfbw

Mon, 12/09/2013 - 17:08 | 4230438 malek
malek's picture

Yes, we're gonna have to go right to ludicrous speed

Mon, 12/09/2013 - 18:07 | 4230657 The Count
The Count's picture

 

The UK now proudly combines the worst of Europe and the US! Nanny state PLUS banksters gone wild...I have been avoiding any layover in Heathrow like the plague.

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