Tuesday, 15 November 2016

Someones Getting Worried?


Once someone says they are the victims of a  'massive blame-deflection exercise' they are generally starting to realise they've, well, fucked up and been found out.

Another member of the 'it's not my fault brigade' methinks.  Right on down with the zeitgeist.

And then there's this pearl of wisdom - ""House prices in the UK are high because of low supply, not because of monetary policy", Carney tells MPs."


Clearly I'm not the only one who thinks carney has no clue.


Bayard said...

It's a bit much to expect the Governor of the Bank of England to know anything about economics.

Mark Wadsworth said...

They don't like it up 'em.

As to 'lack of supply', rents are the Maypole around which house prices dance. Rents are set by Ricardo's law of rent; house prices are just a multiple thereof i.e. the inverse of interest rates.

You don't need fancy computer 'models' to work this out.

Plus, while that shit was in charge in Canada, they had lots of new construction and a massive house price bubble - which is why he got the job over here.