Friday, 25 September 2015

Horse. Stable. Bolted

Here


It used to be that Merchant Banker was rhyming slang.  Central Banker seems more appropriate now. 

12 comments:

A K Haart said...

It was deliberate too.

Mark Wadsworth said...

A "crucial role in protecting our hard-won economic security".

On which planet?

Bayard said...

Well, obviously, anyone with half a clue has known this for years. What is interesting is that the BoE have come out and admitted it. It's also interesting that so many people seem to be piling into BtL, just when it is no longer an economic proposition.

DBC Reed said...

Bayard's right: the BoE is at last noticing the problem
but, as Lola says, its a long time after the horse bolted.

Bayard said...

Bait and switch?

Lola said...

DBCR...and deliberately misdiagnosing it for its own ends. Can't admit our own massive failures y'know. What about all our lovely fat entitlements and power?

Random said...

Mark,
http://www.coppolacomment.com/2015/09/gdp-transactions-in-secondary-markets.html
Homeownerist nonsense here.

Random said...

Author in comments is half right:
"Separating land value from the value of the property built in it (which should depreciate) makes a lot of sense. Land is a safe asset, but shouldn't be a speculative investment with its value driven up by protectionism, blatant market rigging and artificial scarcity. My concern here though is that restricting secondary market finance for property purchase does not address the real issue and tends to depress GDP. Å land value tax would be a far better alternative, I think."
Yes, LVT is needed. But not for "market rigging."

DBC Reed said...

@R Frances Coppola is pretty reliable on money matters but clueless on land price inflation: this is the most hopeful thing I've seen from her on LVT.

Ben Jamin' said...

@DBC

Excellent comment. I tried with FC before on LVT but it's one she won't engage with.

Truth is, economists have been so thoroughly brainwashed they are a lost cause.

Stiglitz is a perfect example. He's looking so hard for the answer that's right in front of his nose, and he still can't see it. And he knows about George etc. Truly amazing, and something I wouldn't have believed possible regarding academia until I learned about LVT (and economics) myself.

The lot of them are worse than useless.

Lola said...

BJ/DBCR He who pays the piper calls the tune. Stiglitz, Coppola et al are looking to their next fat grant from the gummint or landowners or whoever. 'Course they ain't gonna look at LVT - LVT largely shuts down the government's opportunity for gerrymandering and cronyism.

Mark Wadsworth said...

As to the Frances Coppola thing, she's tilting at windmills. I think that e.g. Georgists have made it clear that lending to acquire a building is fine, whether new or old, lending to acquire land is inherently bad. Most of her article she treats the two as interchangeable.