December 04, 2013

Bank of England´s and Financial Stability Board´s Mark Carney, is nothing but a housing dove

Sir, John Plender writes that “UK must be more alert to housing bubbles risks” December 4, and comments that “to his credit, Mark Carney, the governor of the Bank of England, has been making suitable hawkish noises about housing.

But let me remind Plender that Mark Carney is also the Chairman of the Financial Stability Board. And as such Carney approves of risk-weights which allow banks to earn much higher risk-adjusted returns on equity when financing houses than when financing, for instance the entrepreneurs and start-ups, those that could get the house owners the job incomes with which pay their utility bills.

So please do not tell us that Mark Carney is nothing but a housing dove.

For a starter Carney does not even understand this