George Osborne: Funding for lending
Declared purpose:- ‘Policy; Making it easier to set up and grow a business’
See here
Outcome: Bank of England:
- This is money: ‘Buy to Let surges…’
- Telegraph; ‘Helped some borrowers and a disaster for savers’
George Osborne: Help to Buy
Mark Carney: Forward Guidance
“…The Bank has now told the market that it intends to keep this rate at its current historically low 0.5% at least until the unemployment rate falls to 7% or below.”
Outcome:
FT
IFAonline: House prices continue their ‘brisk rise’…
Telegraph: House Prices Rise in August
Telegraph: Mark Carney is ‘ready to pop the housing bubble.
So, let’s get this straight. Osborne and Carney go all out on interventions and manipulation of interest rates and subsidies to landowners both existing and wannabe. And then, when this creates a bubble they carry out more interventions to correct the failure of their previous interventions. One of us is going mad here. Is it me or is it Osborne/Carney?
