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motorworks
11-26-2012, 08:03 PM
So
A Canadain is going to head the UK bank! ?
http://www.cbc.ca/news/politics/story/2012/11/26/pol-mark-carney-bank-of-england-canada.html

Zero_Divide
11-26-2012, 08:14 PM
Yep the Brits are all so screwed.
I don't believe he did a good job while being the head of Canadian bank or w/e the name of that ministry is.

They first laxed the principal and then alot later toughened the rules that prevented schmucks from getting into trouble by taking on more debt that they could pay. Too late IMO. Lotsa ppl who shouldn't have been in housing market managed to buy.

smalltime
11-26-2012, 08:27 PM
So
A Canadain is going to head the UK bank! ?

Next thing you know, you'll try telling us the U.S. President is really from.......Nevermind.

"And I was never here"

Evan
11-26-2012, 08:36 PM
I don't believe he did a good job while being the head of Canadian bank or w/e the name of that ministry is.

He isn't a minister or a politician.

Zero_Divide
11-26-2012, 11:46 PM
He isn't a minister or a politician.

"governor of the Bank of Canada" a high ranked bureaucrat?

Anyway that was not even the point of my comment. He took part in decisions that may soon prove disastrous for this country.

Evan
11-27-2012, 12:42 AM
There are not many people in the world of international finance that agree with that assessment. Exactly the opposite. Canada is in the best financial condition of the Group of 8 and better than nearly all other countries in the world. The most credit is given to Carney, not the government. Carney is not a government bureaucrat either. He does not report to the government. He is at the top of the financial food chain and regulates financial policy independently from the ministers. The government does not set monetary policy, only budgets for the government. Once the bank governor is appointed he does as he sees fit until his term is up.

Zero_Divide
11-27-2012, 01:07 AM
The only reason Canada has been doing so "well" is constant influx of immigrants loaded with money. This has driven housing market up for years. Canada is taking in 1% of its population yearly from outside. Half of immigrants are a business class, that come in with a million or so and immidiately invest it into housing.
Nice. The only problem is millionaires dont work in factories. And i personally know a family who gets welfare living in a mansion.
Carneys fault is that he let house prices inflate too much. With 70% of condo buys in Toronto being for investment. Its not hard to imagine what will happwn when s**t hits the fan. Money will run as fast as they came in and everyone else will be stuck paying a mortgage for a 400k home that will be like 200 quite soon.

lakeside53
11-27-2012, 01:15 AM
Having a really big customer for natural resources just to the South helps also!

lazlo
11-27-2012, 01:22 AM
The Bank of England was at the center of the LIBOR-gate scandal (fixing/manipulating international lending rates). I gather they were looking for an outsider to make the appearance of cleaning house.

Evan
11-27-2012, 01:22 AM
The only reason Canada has been doing so "well" is constant influx of immigrants loaded with money.

Sorry, but no. Our source of income is energy, minerals and forestry. Food exports also help. We supply more oil and related energy products to the US than any other country, fracking not withstanding. 2010 exports to the US were 300 billion.

Immigrant dollars only play a significant role in a few cities, primarily the greater Vancouver area and Toronto area. We are not in a housing price crunch although there will be some deflation in those areas. That is not all of Canada and will not make a country wide difference. Nor will all those people leave to go back home, not even a majority. They came here to stay and brought their money with them.

Housing prices here haven't gone up much or down. That is the case in most of the rest of the country.

Evan
11-27-2012, 01:24 AM
I gather they were looking for an outsider to make the appearance of cleaning house.

It helps tremendously that he is also a Royal Subject.

malbenbut
11-27-2012, 04:26 AM
It doesn't matter who the next director of The Bank of England is, the best doctor in the world cant heal the terminally ill but he may prolong their life for a while.
MBB

Zero_Divide
11-27-2012, 06:12 AM
Yeah i forgot to mention resource exports.
Fair enough i have to agree with you.
But then you have just proven that it wasn't much of Carney's leadership that kept us out of trouble. All of resource-based economies are doing well. Regarding possible housing bubble.... There is still significant percentage of people living in those cities.

Black_Moons
11-27-2012, 06:35 AM
I really hope the housing market does crash.
I want to be able to afford a house in under 100 years of what it costs to rent one now.
"Too many people buying houses that could not afford them", Yes, Heaven forbid people have homes. Such a terrable thing to happen, for someone to own a home. Why I bet most of them even had jobs! the fools, thinking they could actualy afford to own something. </Sarcasm>

More like there $20,000 worth of material/labour houses siting on $20,000 worth of land was sold to them at $200,000~500,000, after being conned into thinking they could afford it and that 'everyone was buying houses' and 'the prices are only going up! its an investment'

The price of housing in BC makes me sick.

kayaker
11-27-2012, 09:49 AM
Yep the Brits are all so screwed.
I don't believe he did a good job while being the head of Canadian bank or w/e the name of that ministry is.


It's called the Bank of Canada and his title is "Governor or the Bank of Canada", responsible for monetary policy, currency and financial systems among other things. The Bank of Canada functions independent of parliament.

"Poor job?". . . And yet, Canada by far had the strongest economy of any G8 country through the turmoil of 2008 forward to today. That entire herd only wished they had shown the restraint and financial prudence of we here in Canada.

And with pool of over 7 billion people to chose from the UK opted for Mark Carney to assume the role of Governor or the Bank of England. Huh. . . :cool:

Mcgyver
11-27-2012, 10:16 AM
.
I don't believe he did a good job while being the head of Canadian bank or w/e the name of that ministry is.
.

Restricted just to those things the governor of the Bank of Canada can actually do, I'd be curious to hear what you think he did wrong.

.

Our source of income is energy, minerals and forestry. Food exports also help. We supply more oil and related energy products to the US than any other country, fracking not withstanding. 2010 exports to the US were 300 billion.

Agreed. Rocks and trees has made us fat dumb and stupid. imo it is a real problem as policies that hurt manufacturing just aren't noticed because overall there's lots of money via exporting raw materials. Its a problem because with >80% of the population urban, you need value add work like manufacturing in urban locations ....if all these people end up driving tow motors or flipping burgers it doesn't make for a happy ending.



But then you have just proven that it wasn't much of Carney's leadership that kept us out of trouble

sort of agreed. It wasn't Carney...or Nixon et all.....and it wasn't rocks and trees. Rocks and trees has kept the economy strong but good governance is not what kept the financial sector out (mostly) out of trouble. There must be a lot of sore arms with the endless self congratulatory back patting done as to what a great job Canadian bank's have done....it simply isn't true. Its the ultimate franchise; a lucrative and highly protected industry that is far less regulated than the US. Of course companies do well when there isn't competition.

Evan
11-27-2012, 10:27 AM
It doesn't matter who the next director of The Bank of England is, the best doctor in the world cant heal the terminally ill but he may prolong their life for a while.

He has his work cut out for him. He obviously isn't afraid of a challenge and will require the full cooperation of parliament to rescue the economy. He isn't stupid and is probably counting on a predictable upswing in the world economy to help, for which he will be given much of the credit in England. The economy is always cyclical at every level. This time around most countries have been hitting a low point all at the same time. The full globalization of international commerce has made that much more likely to happen.

Unfortunately the globalization of commerce also succeeds in globalizing peoples fears of economic disaster. That results in self fulfilling prophecies dragging markets down and reducing liquidity in countries that were doing fine, Canada included. Mark Carney understands that effect and did the most he could to manage financial policy in Canada to maintain liquidity. That was his primary accomplishment and has saved us from a much worse possible downturn during the last four years.

RancherBill
11-27-2012, 11:11 AM
I agree with Evan's statements 100%.

I would add that Carney got the job for several reasons. He's smart, he's made some major speeches that have obviously been well received and finally the most important reason.

Canada and England are 'small' economies next door to 'huge' economies that arfe in trouble. The US went into a tailspin and has not really recovered yet. Canada did not crash as badly as would historically predicted. Carney helped this happen.

England is beside the EU. It is a time bomb. England must ensure that they will not be hurt if the Euro-zone crashes.

lazlo
11-27-2012, 11:59 AM
England is beside the EU. It is a time bomb. England must ensure that they will not be hurt if the Euro-zone crashes.

Agreed, but it's not just the EU -- Goldman and several other US banks pulled the same Ponzi scheme with Greek and Spanish collateralized debt obligations that they did in 2006 - 2008 with junk mortgage-back securities: they packaged the debt up as junk bonds and sold them as AAA investments to everyone's mutual funds and 401K's...

That's the reason why the US stock market crashes when there are demonstrations in Spain about paying their sovereign debt, and why the markets spiked back up last week at the news of the new Greek debt deal.

http://www.usnews.com/news/business/articles/2012/11/27/asia-stocks-up-after-deal-over-greek-debt-reached

Zero_Divide
11-27-2012, 12:40 PM
Agreed, but it's not just the EU -- Goldman and several other US banks pulled the same Ponzi scheme with Greek and Spanish collateralized debt obligations that they did in 2006 - 2008 with junk mortgage-back securities: they packaged the debt up as junk bonds and sold them as AAA investments to everyone's mutual funds and 401K's...

That's the reason why the US stock market crashes when there are demonstrations in Spain about paying their sovereign debt, and why the markets spiked back up last week at the news of the new Greek debt deal.

http://www.usnews.com/news/business/articles/2012/11/27/asia-stocks-up-after-deal-over-greek-debt-reached
You mean they just bought bad euro debt and sold it as the good stuff back home? Well i am sure they acted in good faith and in accordance with the law.

lazlo
11-27-2012, 02:44 PM
You mean they just bought bad euro debt and sold it as the good stuff back home?

Yep.


Well i am sure they acted in good faith and in accordance with the law.

The Federal Courts ruled that it was legal for Goldman to take out credit default swaps betting against investments they just sold to their customers. Goldman internally refers to their customers as "Muppets" -- 'suckers' in Wall Street parlance.

The Federal Courts also ruled that it's legal for Standard and Poor's to fraudulently rate investments they described as "dogsh!t" internally as AAA-rated, on the basis of the 1st Amendment (free speech). So we're all set http://www.practicalmachinist.com/vb/images/smilies/rolleyes5.gif

derekm
11-27-2012, 03:52 PM
oi ENGLAND <>United Kingdom
even though the the Bank of England is the central bank of the United Kingdom
oh and its not Great Britian either as thats a geographical name not a politcal one. Its the name of the biggest Island in the British isles.
and Ireland is the second biggest island in said British isles.So if you're Irish you are strictly speaking British as well . We like complicated

loose nut
11-27-2012, 07:31 PM
We like complicated

You must because the only true Britons are the Welsh (and the pics if any one can find any). The rest are immigrants.

rohart
11-27-2012, 07:55 PM
Yep the Brits are all so screwed.


Excuse me, but I consider that rather offensive.

Did the Brits say all Americans were crazy just because half of them voted for G.W. Bush ?

sasquatch
11-27-2012, 08:18 PM
It was the Canadians that said that!! Lol

smalltime
11-27-2012, 08:48 PM
I had no idea that a plurality of machinists were liberals........Silly me.

Yet another forum I will need to avoid.

Good show old chaps. Get the government to do your work for you.

Evan
11-27-2012, 09:31 PM
The rest are immigrants

Conquerors. The Danish, to be precise. http://ixian.ca/pics9/biggrin.gif