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Bank of England poised to act if household debt spirals

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    Bank of England poised to act if household debt spirals

    "Bank deputy Sir Jon Cunliffe warns consumer debt remains 'large by historic standards', leaving the economy 'vulnerable to shocks'

    Bank of England policymakers will act "sooner rather than later" to curb credit growth, if the recent rise in household debt starts to gather pace, a top official has said.

    Sir Jon Cunliffe, the Bank's deputy governor for financial stability, said consumer debt remained "large by historic standards”, leaving the UK economy "vulnerable to shocks".

    He said the Financial Policy Committee (FPC), which is in charge of maintaining financial stability, would consider taking action if credit started to grow faster than the economy.

    "Given the vulnerability that already exists and the powerful drivers in the UK, particularly the housing market, if credit began again to grow faster than GDP, I would want to think about action to manage the financial stability risks sooner rather than later," he told an audience in London. "

    Source: Bank of England poised to act if household debt spirals - Telegraph

    WTF, it's already at crazy high levels!

    #2
    The economy tanks, so they create a huge amount of cheap debt. Everyone sucks it up, buys cars they can't afford, buys houses at ridiculous income multiples, become debt laden consumers, and then the creators of the debt bubble throw their hands up in horror.

    And these people are supposed to inspire us with confidence?
    First Law of Contracting: Only the strong survive

    Comment


      #3
      Originally posted by AtW View Post
      WTF, it's already at crazy high levels!
      WH(fooking)S

      Even what it was at it's lowest point in this cycle since the big crash - it was still too high.

      Comment


        #4
        Originally posted by AtW View Post
        "Bank deputy Sir Jon Cunliffe warns consumer debt remains 'large by historic standards', leaving the economy 'vulnerable to shocks'

        Bank of England policymakers will act "sooner rather than later" to curb credit growth, if the recent rise in household debt starts to gather pace, a top official has said.

        Sir Jon Cunliffe, the Bank's deputy governor for financial stability, said consumer debt remained "large by historic standards”, leaving the UK economy "vulnerable to shocks".

        He said the Financial Policy Committee (FPC), which is in charge of maintaining financial stability, would consider taking action if credit started to grow faster than the economy.

        "Given the vulnerability that already exists and the powerful drivers in the UK, particularly the housing market, if credit began again to grow faster than GDP, I would want to think about action to manage the financial stability risks sooner rather than later," he told an audience in London. "

        Source: Bank of England poised to act if household debt spirals - Telegraph

        WTF, it's already at crazy high levels!
        They tried "trickle down", in the form of QE, and that didn't work very well as the banks have simply horded the funds.

        So maybe the next step is to try "trickle up", and simply add say £500 to one designated bank or building society account of every UK citizen.
        Work in the public sector? Read the IR35 FAQ here

        Comment


          #5
          Originally posted by OwlHoot View Post
          They tried "trickle down", in the form of QE, and that didn't work very well as the banks have simply horded the funds.
          No, that worked exactly as intended - Mervyn King is now Baron King of Lothbury, banks for free money to have super high margins on super safe mortgage lending, they also gave toxic tulipy tripple Z rates assets as collateral for real money.

          Comment


            #6
            Originally posted by AtW View Post
            No, that worked exactly as intended - Mervyn King is now Baron King of Lothbury, banks for free money to have super high margins on super safe mortgage lending, they also gave toxic tulipy tripple Z rates assets as collateral for real money.
            It was a transfer of wealthy bankers debt to ordinary citizens. Then the banks were flooded with ZIRP funny money so that they could push asset prices through the roof. Rinse and repeat.

            Result is a hyper rich ruling elite with millions of debt slaves working their lives away to pay for it all.
            First Law of Contracting: Only the strong survive

            Comment


              #7
              Originally posted by _V_ View Post
              It was a transfer of wealthy bankers debt to ordinary citizens.
              Banks pay near zero to savers, BoE got rate of 0.5%, yet even save mortgage debt is pretty high 3-4% - when were the bank margins so high?

              Comment


                #8
                This is the end of money.

                This is more worrying.

                http://www.marketoracle.co.uk/Article53486.html

                "[It is] entirely possible in the next banking crisis that depositors in giant too-big-to-fail failing banks could have their money confiscated and turned into equity shares"
                Last edited by ChimpMaster; 9 February 2016, 20:15.

                Comment


                  #9
                  Looks like my money will be safer in sofas

                  Comment


                    #10
                    Originally posted by AtW View Post
                    Looks like my (virtual) money will be safer in (non-existent) sofas
                    FTFY

                    Comment

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